3 Factors that Affect Car Insurance Rates
Montana requires drivers to maintain purchase auto insurance before they can operate on public roads. While certain types of coverage are mandatory — such as bodily injury liability and uninsured motor coverage — costs vary from driver to driver. Below are three of the key factors that affect insurance rates.
3 Factors that Influence Auto Insurance Premiums
1. The Car
Your car’s make, model, and age all help determine your auto insurance costs. The newer and more valuable the car is, the more you'll pay to insure it. A brand new sports car costs far more to replace or repair than a decade-old compact car does. Thus, because your insurer incurs greater risk, they charge you more for coverage. To reduce your monthly premiums, opt for an older, less expensive vehicle.
2. Your Driving History
If you have a history of accidents and moving violations, you'll pay more for auto insurance than if your record is clean. For most insurers, tickets and accidents stay on your record for three years. However, some look back five years or more. Regardless of the specific policy, to avoid paying higher premiums, obey traffic laws and drive defensively to avoid collisions.
3. Your Credit Rating
Insurers believe that drivers with good credit tend to file fewer claims than those with dings on their credit report. Thus, you can lower your rates by cleaning up a checkered credit score. Pay all your bills — including credit cards, loans, and utility bills — promptly, bring any delinquent accounts up to date, and contact a creditor to work out arrangements if you cannot afford to make a payment on time.
For expert assistance putting together an auto insurance policy, contact The Insurance Exchange in Kalispell, MT. They have served the Flathead Valley for more than 20 years and also maintain offices in Eureka and Whitefish, MT. In addition to car insurance, they can also connect you to excellent home, motorcycle, and business insurance plans. Learn more about the agency on their website or call (406) 756-2500 to request an auto insurance quote.
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