Motor vehicle insurance companies keep track of all your driving related information. They usually have point systems for moving violations, at-fault incidents and accidents as well as surcharges for those motorists who are considered to be high risk. In a state like New Jersey for instance, if you happen to accumulate seven insurance points, you are immediately classified as a high-risk driver. As a result, in addition to your normal insurance payments, you are required to submit insurance surcharges. A surcharge is the amount of money added onto your insurance premium by the insurance company. Insurance companies demand surcharges for variety of occurrences and events including reckless driving. Accordingly, you can be sure to receive a surcharge if you receive a citation or ticket or are unfortunate enough to be involved in accident where you are the cause. Depending on the insurance company, a surcharge remains on your insurance policy for between three and five years. In most instances, the amount depends on what the surcharge was triggered by, the amount of money the insurance company paid out to cover the damages and your premium amount. Generally, surcharges are a percentage of the premium amount. Still, different companies have different ways of determining the surcharge amount that will be added to your premium.

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