Every state writes its own rules and regulations to ensure the safety of its citizens. These rules have to be followed at all costs. One such rule is the mandatory auto insurance rule imposed by the state of Montana. Auto insurance has been made mandatory to ensure that each driver has adequate finances to pay for damages caused during an accident. This is known as financial responsibility. The torts system makes it the responsibility of the at fault driver to pay for all the damages caused and if he cannot do so, the not at fault driver can sue him.
The state of Montana has also fixed the minimum liability. This is for an amount of twenty five thousand dollars for bodily injury per person and fifty thousand dollars in total. Mandatory property damage coverage is for an amount of ten thousand dollars. Property damage coverage will cover all the costs of repair and replacement incurred by the car of the victim.
Property damage will also pay for all the damages incurred by the buildings, fences, lamp posts etc. Bodily injury will cover the medical costs incurred by the not at fault driver. This is the minimum amount that a person has to be insured for. However, most accidents cost a lot more and hence it is best to be insured for larger amounts. This article focuses on a few tips you might need to save some money on your auto insurance.
Compare the different vendors. Go to many different vendors and get competitive quotes from each of these vendors. Compare the quotes and come up with a list of vendors you can afford. The next step is to shop smartly. Choose the services or the insurance coverage policies you might need smartly. You do not need all the policies offered by the vendor. Review your finances and check which services you will truly need.
Compare the quotes of the different vendors and select the vendor that offers your services at the least cost. If you have more than one vehicle make sure you insure all of the vehicles at the same insurance company. This will help you get a discount. A good student in your household will also get you a discount as many companies offer good student discounts.
Drive carefully. Every insurance company will look at the driver’s driving record to gauge the amount of risk he is. A good driving record will ensure you get a discount on the rates while a bad driving record will ensure you get a very high rate.
Raise your deductibles on physical damage policy. This might seem a bad ploy but will help you sae a lot of money. Raise the deductibles on collision and comprehensive policies as this will reduce the insurance rates greatly. You might have to pay more when using the policy but you will have saved a lot more. Reduce the number of claims that you make on the vehicle. If the number of claims increases, the rates go up too. Small scratches are best paid out of your pocket.
