Is Your Wolf Point, MT Car Insurance Leaving a Hole in Your Pocket?

Have you fallen victim to high-priced car insurance? Believe me when I say there are many people just like you. Multiple insurance companies compete for your hard-earned dollar, and because of this it can be hard to compare insurance companies to discover the definitive cheapest price

Consumers should take time to do rate comparisons quite often because prices are adjusted regularly by insurance companies. Just because you had the best price on your last policy there may be better deals available now. There is a lot of wrong information about car insurance on the internet, so we’re going to give you a bunch of ideas how to save money.

Discounts are basically free money

Companies offering auto insurance don’t always advertise all available discounts very well, so we break down some of the best known and also the lesser-known car insurance savings. If you don’t get every credit you qualify for, you are paying more than you should be.

• Theft Prevention Discount – Vehicles with anti-theft systems can help prevent theft and qualify for as much as a 10% discount.
• Save with a New Car – Buying coverage on a new vehicle can be considerably cheaper since new cars are generally safer.
• Multi-car Discount – Insuring more than one vehicle on the same car insurance policy qualifies for this discount.
• Student Driver Training – Have your child successfully complete driver’s ed class in school.
• Service Members Pay Less – Being deployed with a military unit could mean lower rates.
• Anti-lock Brake System – Cars that have steering control and anti-lock brakes prevent accidents and will save you 10% or more.
• No Claims – Good drivers with no accidents pay less when compared with bad drivers.
• Good Student – Getting good grades can be rewarded with saving of up to 25%. This discount can apply up to age 25.
• Payment Discounts – If you pay your entire premium ahead of time instead of monthly or quarterly installments you could save up to 5%.

As a disclaimer on discounts, most credits do not apply to the overall cost of the policy. Some only reduce individual premiums such as liability and collision coverage. So despite the fact that it appears it’s possible to get free car insurance, car insurance companies aren’t that generous.

To choose providers offering car insurance discounts in Montana, click here.

You have some control over your rates

Consumers need to have an understanding of the rating factors that come into play when calculating the rates you pay for car insurance. When you know what positively or negatively determines base rates empowers consumers to make smart changes that may reward you with much lower annual insurance costs.

• Big city or small town – Residing in a rural area is a positive aspect when insuring your vehicles. City drivers have to deal with more traffic problems and a longer drive to work. Less people living in that area means reduced accidents and a lower car theft rate.
• Don’t buy coverages you don’t need – There are a lot of extra bells and whistles that you can get tricked into buying when buying car insurance. Insurance for vanishing deductibles, accidental death and motor club memberships may be costing you every month. These may sound like a good investment when talking to your agent, but if you don’t need them eliminate the coverages to reduce your premium.
• High numbers of claims are not good – If you frequently file small claims, you can expect either policy cancellation or increased premiums. Car insurance companies in Montana give cheaper rates to insureds who do not rely on their insurance for small claims. Your insurance policy is intended for the bigger claims that can’t be paid out-of-pocket.
• Don’t skimp on liability – Liability insurance is the protection when you are found to be at fault for causing damage or personal injury in an accident. Liability provides you with a defense in court which can be incredibly expensive. Liability insurance is quite affordable compared to physical damage coverage, so do not cut corners here.
• Bundling policies can get discounts – The majority of insurance companies provide better rates to policyholders who have multiple policies with them such as combining an auto and homeowners policy. Discounts can amount to 10 percent or more. Even with this discount, you may still want to compare other company rates to confirm you are receiving the best rates possible.
• Choose a safe vehicle and save – Cars with high safety ratings tend to have better insurance rates. Safer cars have better occupant injury protection and fewer injuries means less money paid by your insurance company and thus lower rates.

Which insurance is the “right” coverage?

When buying proper insurance coverage, there isn’t really a cookie cutter policy. Your needs are not the same as everyone else’s so this has to be addressed. For instance, these questions can help discover if you could use an agent’s help.

• Do I need higher deductibles?
• Do I need special endorsements for business use of my vehicle?
• What are Montana no-fault laws?
• Am I covered if I drive in a foreign country?
• What discounts do I qualify for?
• How can I get high-risk coverage after a DUI?

If it’s difficult to answer those questions but you know they apply to you, you may need to chat with an agent. If you want to speak to an agent in your area, simply complete this short form or click here for a list of car insurance companies in your area. It’s fast, doesn’t cost anything and can help protect your family.

Advertising myths

Montana consumers get pounded daily by advertisements for car insurance savings by companies like 21st Century, Allstate and State Farm. They all have a common claim about savings if you change to them.

How do they all make almost identical claims? It’s all in the numbers.

Different companies have a certain “appetite” for the driver that makes them money. A good example of a desirable insured might be profiled as between 30 and 50, insures multiple vehicles, and drives newer vehicles. Any new insured that hits that “sweet spot” will qualify for the lowest rates and most likely will save when switching.

Drivers who are not a match for this ideal profile will have to pay higher rates which leads to the customer not buying. The ad wording is “customers who switch” but not “drivers who get quotes” save that much money. That’s the way insurance companies can confidently claim big savings. Because of the profiling, it’s extremely important to get as many quotes as possible. It is impossible to predict which car insurance company will have the lowest rates.

Some additional reading

More detailed Montana car insurance information is located at the Montana Commissioner of Securities and Insurance website. Consumers can learn about specific coverages, report car insurance fraud, and learn about insurance regulations.

Additional helpful sites include NAIC.org’s Understanding your Policy and this link where you can make Wolf Point car insurance comparisons.

A tidy conclusion

You just read a lot of techniques to save on car insurance. It’s most important to understand that the more times you quote, the better your chances of lowering your rates. You may even find the lowest premiums are with the smaller companies. Smaller companies may have significantly lower rates on certain market segments than their larger competitors like Allstate and Progressive.

When trying to cut insurance costs, it’s a bad idea to sacrifice coverage to reduce premiums. There have been many cases where consumers will sacrifice liability limits or collision coverage only to find out that they should have had better coverage. Your strategy should be to purchase plenty of coverage at an affordable rate.