Car Insurance in Montana
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Introduction: Car Insurance in Montana
Montana has over 800,000 licensed drivers, making car insurance essential for residents. Whether you’re navigating Billings’ city streets, driving through Bozeman’s mountain roads, or cruising along rural highways, car insurance in Montana is legally required and provides financial protection.
Montana has higher-than-average car insurance rates due to extreme weather conditions, high rural accident rates, and increased vehicle theft. According to the National Association of Insurance Commissioners (NAIC), the average annual cost of full coverage in Montana is $1,868, above the national average of $1,674.
Montana Car Insurance Requirements (State Laws & Minimum Coverage)
Minimum Liability Coverage (25/50/20 Rule)
According to the Montana Department of Justice – Motor Vehicle Division, drivers must carry at least:
✔ $25,000 for bodily injury per person
✔ $50,000 for bodily injury per accident
✔ $20,000 for property damage per accident
Why Minimum Coverage May Not Be Enough:
- Medical expenses from an accident can exceed $25,000 per person.
- Vehicle repair costs are often much higher than $20,000, especially for newer cars.
- Montana has a high number of uninsured drivers, making Uninsured/Underinsured Motorist (UM/UIM) coverage highly recommended.
Recommended Full Coverage for Better Protection
Many Montana drivers opt for full coverage, which includes:
| Coverage Type | What It Covers | Recommended For |
|---|---|---|
| Collision Coverage | Pays for damage to your car in an accident | Drivers with new or financed vehicles |
| Comprehensive Coverage | Covers theft, vandalism, and weather damage | Important due to Montana’s hailstorms, snow, and wildlife collisions |
| Uninsured/Underinsured Motorist (UM/UIM) | Covers injuries from uninsured drivers | Essential for full protection |
| Medical Payments Coverage (MedPay) | Covers medical expenses regardless of fault | Beneficial for drivers with limited health insurance |
Average Cost of Car Insurance in Montana
Car insurance rates in Montana vary based on location, driving history, and vehicle type. Below is an average cost breakdown:
Montana Car Insurance Cost by Coverage Type
| Coverage Type | Average Annual Cost |
|---|---|
| Minimum Liability | $750 |
| Full Coverage | $1,868 |
Car Insurance Costs by Major Montana Cities
| City | Minimum Coverage | Full Coverage |
|---|---|---|
| Billings | $850 | $2,000 |
| Missoula | $800 | $1,900 |
| Great Falls | $780 | $1,850 |
| Bozeman | $820 | $1,950 |
| Butte | $750 | $1,800 |
| Helena | $780 | $1,850 |
| Kalispell | $800 | $1,900 |
| Havre | $740 | $1,750 |
| Miles City | $720 | $1,700 |
| Livingston | $770 | $1,830 |
Car Insurance Costs by Age Group
| Age Group | Minimum Coverage | Full Coverage |
|---|---|---|
| 16-19 Years | $3,500 – $5,500 | $6,500 – $8,500 |
| 20-24 Years | $1,800 – $2,700 | $3,800 – $5,200 |
| 25-34 Years | $1,200 – $1,800 | $2,800 – $3,800 |
| 35-44 Years | $1,000 – $1,500 | $2,500 – $3,500 |
| 45-54 Years | $950 – $1,400 | $2,300 – $3,200 |
| 55+ Years | $900 – $1,300 | $2,000 – $3,000 |
✔ Teen Drivers (16-19 Years): Pay the highest premiums due to inexperience and higher accident risks. Many insurers offer good student discounts to help lower costs.
✔ Young Adults (20-24 Years): Rates decrease as driving experience improves but remain higher than mid-age drivers.
✔ Mid-Age Drivers (25-49 Years): Experience the lowest insurance premiums due to lower accident risks and a longer driving history.
✔ Senior Drivers (70+ Years): Rates increase again as older drivers face higher accident risks due to slower reaction times and medical conditions.
Factors Affecting Car Insurance Rates in Montana
Several factors influence car insurance rates in Montana, including:
- Extreme Weather: Montana experiences heavy snow, hailstorms, and high winds, increasing claim rates.
- Rural Driving Risks: Long distances and higher speeds on rural roads contribute to more severe accidents.
- Driving Record: Accidents, DUIs, and traffic violations significantly impact premiums.
- Location: Cities like Billings and Missoula have higher rates due to population density.
- Credit Score: Montana insurers use credit history to determine premiums.
- Annual Mileage: More miles driven increases accident risk.
- Wildlife Collisions: Montana has a high rate of deer-related accidents, increasing comprehensive insurance claims.
- Coverage Level: Full coverage is more expensive but offers better protection.
Best Car Insurance Companies in Montana (2025)
Finding the right insurer depends on affordability, coverage, and customer satisfaction. Here are some top options:
| Company | Best For | Average Annual Cost (Full Coverage) |
|---|---|---|
| GEICO | Cheapest Rates | $1,750 |
| State Farm | Best for Customer Service | $1,850 |
| Progressive | Best for High-Risk Drivers | $2,000 |
| Allstate | Best Full Coverage Options | $2,200 |
| USAA (Military Families) | Lowest Rates for Military | $1,600 |
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FAQs
Montana law requires 25/50/20 liability coverage: $25,000 per person for injuries, $50,000 per accident, and $20,000 for property damage.
The average minimum coverage costs around $63 per month, while full coverage averages $156 per month.
Smaller cities like Miles City and Havre tend to have lower rates compared to Billings and Missoula.
No, Montana does not require uninsured motorist coverage, but it is highly recommended.
Yes, but high-risk drivers may face higher premiums. Defensive driving courses and shopping around can help lower costs.
Sources
About the Author
Alex Huber is a content writer for Atoz Insurances and he is a very experienced and well-rounded freelance content writer who specializes in the insurance and finance niches. His writing is engaging and informative, and he has a strong understanding of the industries he writes about.