Myths Concerning Montana Auto Insurance

Many people feel as if they know a little more about Montana auto insurance than they really do. This is because there are a lot of myths floating around concerning auto insurance. Acting upon these myths could lead you into some troublesome situations.

Take a few moments to read over some of the most common myths associated with Montana auto insurance so you don't make the same costly mistakes as others have.

My Red Car Will Increase My Montana Auto Insurance Rates

This is a myth that seems to have come from the notion that the police pull over red cars more than other colors of vehicles. For insurance purposes, the color of your vehicle makes no difference whatsoever. Your vehicle, however, does affect your Montana auto insurance rates.

This is what your Montana auto insurance company will consider when it comes to evaluating your vehicle.

Age
Body type
Engine size
Make
Model
Locking/alarm features
Repair and replacement cost
Safety features

My Friend's Montana Auto Insurance Will Cover Her If She Wrecks My Car

This is a common myth as most people think their Montana auto insurance travels with them no matter what vehicle they drive. In fact, if you lend you car to a friend and they get into an accident, it will be your insurance that takes the hit.

It may be possible for your Montana auto insurance company to sue your friend or your friend's auto insurance, but your premiums may still go up. In some cases, your friend's auto insurance may be used to pay any excess damages that your Montana auto insurance does not cover. This depends upon the parameters of your friend's auto insurance.

My Newly Purchased Car is Automatically Covered by My Montana Auto Insurance

This is true only to a certain point. Once you have purchased a new (new to you) vehicle, you have a certain number of days to report it to your Montana auto insurance company. You will need to check with your insurance company to find out how many days you have. You are covered during this time period, but if you do not report the car within that timeframe, you will not be covered for your newly purchased vehicle.

It only takes a few minutes to either call or go online and report your new vehicle to your Montana auto insurance company. The quicker you do it the better as it can save you a lot of hassle and possibly money later.

I Only Need to Purchase Collision Montana Auto Insurance on My New Car

This is false for two reasons. First, a collision policy will not cover your vehicle in the case of the following:

Fire
Hail
Vandalism
Theft
Any accidents that do not involved a collision

A collision policy will generally only cover accidents involving a collision with another vehicle or object.

Secondly, if you have a lien against the new car, your lender will most likely require you to purchase a comprehensive Montana auto insurance policy. A comprehensive policy, in addition to the liability requirements and the collision policy, will offer you complete protection. Once, you have paid off your vehicle, you are then free to get any amount of insurance you like as long as it meets the state minimum requirements.

Montana Auto Insurance Rates are Set by the Government

This is an absolute myth and it is good for you that they are not set by the government. Because you may be charged differently depending upon the Montana auto insurance company, it is smart to shop around in order to save much needed cash.

By getting Montana auto insurance quotes, you can find the lowest price on the best policy for you. You can go online and get multiple Montana auto insurance rates quotes in only a few minutes. These few minutes can save you a bundle in Montana auto insurance premiums.

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