How to Find the Most Affordable Car Insurance in Montana

Fran
Lucy Lazarony
July 15, 2020

The average cost of car insurance in Montana is $1,615 per year, which is about 13 percent higher than the national average. Usually being above average is a good thing but not in this case. We bet Montana drivers would like lower car insurance premiums. And there are ways to get them, some tips and strategies for lowering car insurance that really work. We will discuss those later on but first we will look at car insurance in Montana.

State Minimum Liability Requirement

Liability insurance helps pay for the other person’s expenses if you are at fault in an accident. Each state has minimum liability requirements for the drivers in their state.

In Montana, the minimum liability requirement is $25,000 bodily injury per person, $50,000 bodily injury per accident and $20,000 property damage per accident.

In Montana, minimum liability coverage costs $381.

Uninsured and Underinsured Motorist Coverage

Montana law requires drivers to purchase uninsured and underinsured motorist coverage of $25,000 bodily injury and $50,000 bodily injury per accident unless the driver declines the coverage in writing. Uninsured motorist coverage helps to pay for damages caused by a driver who doesn’t have insurance. Underinsured motorist coverage protects you in the event of an accident where the other party is at fault and he or she doesn’t carry enough insurance.

A Full Policy Costs More

If you move beyond just a minimum liability policy it will cost more. In Montana, a policy with collision coverage and comprehensive coverage and $1,000 deductibles would cost $1,322.

Collision auto insurance is coverage that helps to replace or repair your car if it is damaged in an accident with another vehicle or object such as a tree or a fence. Comprehensive auto insurance covers events not covered by collision coverage. These events include theft, fire and vandalism and damages from weather such as a hurricane, a tornado, a windstorm and a hailstorm.

If you have a loan on your car, your lender will require you to carry collision coverage and comprehensive coverage.

A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Both collision coverage and comprehensive coverage require deductibles. Choosing a high deductible is one way to save money on your insurance premium.

Montana Is an At-fault State

When it comes to insurance, Montana is an at-fault state. This means drivers in Montana are responsible for any damage they cause to another vehicle. It is an insurance adjuster who determines who is at fault in a car accident.

How to Save Money on Car Insurance

These straightforward tips will help you save money on car insurance. Let’s get to them.

Boost your credit score. Want your car insurance premium to go down? Boost your credit score. Insurance companies have been using consumer credit data to assign risk pools and set insurance rates since the mid-1990s. If you have a good or excellent credit score then down goes your car insurance premium. If you have no or bad credit and you will pay a whole bunch more for car insurance. In Montana, a driver with excellent credit saves $1,907 annually on car insurance compared to a driver with bad credit. Want to improve your credit? Get all past due accounts current, pay down debt and avoid taking on new debt. And don’t forget to get in the habit of paying your bills on-time. Building up a positive payment history is good for your credit score.

Safety first. Be a safe driver who follows the rules of the road and you will be rewarded with a lower auto insurance premium. In Montana, a driver without a recent, at-fault accident saves 26 percent on car insurance. But break some traffic rules and premiums go up. In Montana, car insurance premiums increase by 29 percent after a DUI, 26 percent after an at-fault accident and 17 percent after a speeding ticket. What does that mean in dollars and cents?

A first, minor at-fault accident would cost $576 more per year in auto insurance premiums. A DUI will increase annual car insurance by $690. Have you been a safe and responsible driver? Ask your insurance company for a good driver discount. You’ve earned it with your driving behavior out on the road.

Try bundling your insurance policy. Bundle your auto insurance policy with another insurance policy such as a homeowners insurance policy and save money.

Use a multi-car discount. Got more than one car to insure? Insure them both with the same insurance company and you’ll be able to cash in on a multi-car discount.

Pay once or twice a year. Rather than paying monthly auto insurance bills, pay the entire annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Check those memberships. Members of some professional organizations and affiliate groups get discounts on car insurance. So open your wallet and check to see if any of those memberships will save you money on car insurance.

Check safety and other features. Having certain anti-theft and safety devices on your car will save you money on car insurance. So check to see if the features on your car warrant a discount.

Spend less on older cars. The maximum payout for collision coverage and comprehensive coverage is limited by the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision coverage and comprehensive coverage any longer.

Check for discounts. A good driver discount was already mentioned. But there are also discounts for students and veterans. So if you qualify be sure to reach out to your auto insurance company.

Be a female driver. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Pick a high deductible. Choosing a high deductible will help to lower your auto insurance premium. Just be sure to put the deductible amount into a small emergency fund. This way, the money will be there should you need to file an auto insurance claim.

Stick with your coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your auto insurance coverage and save money.

Drive low miles. Want to save money on your car insurance? Drive a little less. Low-mileage drivers save money on their car insurance. Heavy commuters pay more for their premiums. So drive less and pay less for car insurance.

Be a married motorist. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less in auto insurance than singles.

Check your age. Drivers who are younger than 25 and older than 65 have more serious accidents and pay more for car insurance. Drivers of the in-between ages pay less.

Live in a safe neighborhood. If you live in a neighborhood with high accident claims and auto theft, you will pay more for your auto insurance. If you live in a neighborhood with low accident claims and low crime, you’ll pay much less for your car insurance. So choose a safe neighborhood and save money on your car insurance.

Own your home. Statistics show that people who own homes drive more safely. So let your insurance company know that you own your home and enjoy the savings on your auto insurance premium.

Shop around. One of the best ways to save money on car insurance is to shop around. So look for insurance quotes from several different companies. SmartFinancial makes this easy to do. Just enter the type of insurance you are looking for and a zip code to get started. Answer a few, quick questions and you’ll be comparing auto insurance rates in Montana before you know it.


SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and price that you want. So shop smart for insurance and drive safely along the roads of Montana.

Get a Free Auto Insurance Quote Online Now.

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