Montana is the land of wide-open spaces, breathtaking scenery, and of course, plenty of roads to explore. Whether you’re cruising along the scenic Beartooth Highway or tackling a dusty backroad, having the right car insurance is a must. But USAA customers are facing a couple of speed bumps as their insurance rates go up.
What’s Happening?
As of March 28, USAA raised its auto insurance premiums for Montana drivers by 10.2%. And since Montana has one of the highest shares of veteran residents in the country, this change has a major impact on its population.
The average policyholder affected by this hike is seeing their costs go up by an estimated $177. For USAA, this translates to a revenue increase of over $2.3 million in written premiums.
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Why Are Insurance Rates Increasing?
Several factors contribute to rising insurance rates, including:
- Increased accident claims: More accidents lead to higher payouts for insurance companies.
- Rising medical costs: The cost of treating injuries sustained in accidents has been increasing.
- Inflation: The rising cost of goods and services, including labor and materials, affects insurance companies’ expenses.
- Technology advancements: Newer cars with advanced safety features and technology can be more expensive to repair.
How to Save On Your Insurance
While insurance rate increases can be frustrating, there are several ways to save on your car insurance:
- Shop around for quotes: Get quotes from multiple insurers to compare rates and coverage options.
- Bundle your policies: Combining your car insurance with other policies, such as home or renters insurance, can often result in discounts.
- Increase your deductible: A higher deductible means lower premiums, but you’ll pay more out-of-pocket in case of an accident.
- Maintain a good driving record: Safe driving habits can earn you discounts.
- Take a defensive driving course: Completing a defensive driving course can qualify you for discounts.
- Consider a less expensive car: The type of car you drive affects your insurance rates.
- Improve your credit score: In some states, your credit score can impact your insurance rates.
More Tips and Tricks to Lower Your Costs
- Maintain a good driving record: Avoid accidents and traffic violations to keep your rates low.
- Take advantage of discounts: Ask your insurer about available discounts for good students, safe drivers, and members of certain organizations.
- Drive less: Reducing the number of miles you drive can lower your risk and potentially your rates.
- Use public transportation: Consider alternatives to driving, such as public transportation or ride-sharing services.
- Review your coverage: Make sure you have the right amount of coverage for your needs.
Stay Ahead of the Curve on Car Insurance
USAA’s rate increase in Montana highlights the importance of regularly reviewing your car insurance policy and exploring options to save money. By taking proactive steps, you can minimize the impact of rising insurance rates.
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