Understanding Montana’s Minimum Car Insurance Requirements

Montanas state minimum car insurance coverage is 25/50/20. The average cost is about $391 annually or $33 monthly.

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Montana requires drivers to have a certain amount of car insurance. This insurance must cover at least $25,000 in bodily injury liability per person, $50,000 per accident, and $20,000 in property damage. Montana has an “at-fault” insurance system, which means that the person who caused the accident is also financially responsible for any damage it causes.

The cost of meeting these requirements can be more manageable than many might assume. The least expensive car insurance in Montana costs about $33 a month, so you can drive legally without going broke. Keep in mind that the rate is only for the state minimum coverage, which only covers damage you cause to other people’s property and not your own.

Why Should You Trust MoneyGeek? They looked at information from Quadrant Information Services and the Montana Commissioner of Securities and Insurance to give you the most accurate cost information for a different group of Montana drivers.

These rates reflect the cost of minimum coverage car insurance requirements in Montana as of August 2024.

Having adequate car insurance is not only smart financial protection, it’s the law in Montana. All motor vehicles operated on public roads must carry liability insurance that meets the state’s minimum coverage amounts

But what exactly are the minimum auto insurance requirements in Montana? What happens if you’re caught without proper coverage? This article provides a comprehensive overview of Montana’s mandatory insurance laws so you can make sure your policy is in compliance.

Montana’s Minimum Liability Limits

Montana statute § 61-6-103 lays out the minimum liability insurance requirements that all motorists must carry

$25,000 for bodily injury or death of one person in any single accident, and;
$50,000 for bodily injury or death of two or more persons in any single accident, and;
$20,000 for property damage in any single accident.

This mandatory minimum liability coverage is designed to compensate other parties for losses that occur when you are at fault in an accident. However, it provides zero coverage for damage to your own vehicle or injuries to yourself or passengers.

Uninsured/Underinsured Motorist Coverage

While not required by law, uninsured and underinsured motorist coverage starts at $25,000 per person and $50,000 per accident in Montana. This protects you and your passengers in situations where the at-fault driver has no insurance or insufficient coverage.

Purchasing adequate uninsured/underinsured coverage is highly recommended, as nearly 13% of Montana drivers lack insurance.

Additional Recommended Coverages

The mandated minimum liability requirements should be seen as an absolute minimum. Most experts recommend carrying more robust coverage for optimal protection.

Additional types of coverage to consider include:

Comprehensive – Covers damage to your vehicle from incidents besides collisions, like weather, theft, vandalism, fire, and animals.
Collision – Pays to repair or replace your vehicle if damaged in an accident you cause.
Medical Payments – Provides coverage for medical treatment costs for you and passengers, regardless of who was at fault.
Personal Injury Protection – Pays for lost wages, medical bills, and other injury-related expenses after an accident.
Gap Insurance – Covers the difference between what your car is worth and what you still owe if it’s totaled. Helpful for new cars.

The right insurance limits depend on your specific situation – the value of your car, health insurance coverage, driving record, budget, and risk tolerance. But please strongly consider more than just basic liability coverage.

Penalties for Lacking Required Insurance in Montana

Driving without the minimum mandatory insurance in Montana is a misdemeanor criminal offense. If you’re unable to provide proof of valid coverage during a traffic stop or accident, substantial fines apply:

1st offense – Minimum $250 fine up to maximum $500 fine and/or up to 10 days jail time.
2nd offense – Minimum $350 fine and mandatory 10 days jail time. 90 day driver’s license suspension.
3rd offense – Up to $500 fine and/or up to 6 months jail time. Possible driver’s license revocation.

In addition to fines, a conviction for driving without insurance leads to 5 penalty points added to your driving record. Accumulating 30 points results in driver’s license revocation.

Clearly, lacking required insurance is not a risk worth taking. The consequences are severe and penalties escalate quickly for repeat offenses. Plus, being involved in an at-fault accident without coverage exposes you to potentially massive liability.

How Insurance Verification Works in Montana

To cut down on uninsured driving, Montana utilizes an online insurance verification system called the Montana Insurance Verification System (MTIVS).

Connected to the vehicle registration database, MTIVS allows law enforcement and courts to instantly check if a vehicle has active compliant insurance coverage. Officers routinely verify insurance during traffic stops and accident responses.

So even if you present an expired or invalid proof of insurance card, the actual coverage on file for your car will be checked in the system. There’s no getting around required insurance obligations in Montana.

Can’t Afford Minimum Insurance?

For lower income drivers, maintaining continuous minimum liability coverage can be challenging. However, it’s critical to make it work, as driving uninsured is simply not a viable option. Here are some tips to lower costs:

Shop for quotes regularly – rates can vary significantly between insurers.
Ask about every discount – multiple may apply like good student, low mileage, defensive driver, etc.
Consider dropping comprehensive and/or collision coverage if your car has very low value.
Increase deductibles to lower premiums.
Drop optional coverages like roadside assistance and rental reimbursement.
Enroll in usage-based insurance programs that track driving habits.
See if you qualify for state aid programs like Medicaid, SNAP, and LIHEAP, which provide assistance.

While minimum liability-only policies are cheap, rates from major insurers like State Farm and Allstate start under $30 a month. With some effort, required insurance can be reasonably affordable even on tight budgets.

The Bottom Line

There’s simply no excuse for flouting Montana’s mandatory insurance laws. The minimum liability coverage amounts are:

Bodily Injury: $25,000 per person and $50,000 per accident
Property Damage: $20,000 per accident
Uninsured Motorist: $25,000 per person and $50,000 per accident

I highly recommend purchasing extra coverage beyond these minimums for optimal protection. Make sure you understand the substantial fines for uninsured driving, and explore all options to find affordable rates. Maintaining continuous active insurance is a must to legally operate a vehicle in Montana.

Penalties for Driving Without Insurance in Montana

When you drive without insurance in Montana, the price of your ticket can change based on how many times you’ve done it before. People who break the law for the first time might get away with less punishment than people who have broken the law before, but repeat offenders might face harsher punishments.

Penalties for driving uninsured in Montana include:

Fines going up: If you drive without insurance more than once, your fines may go up.
License suspension: You might not be able to drive for a while, and you’ll have to pay a fee to get it back.
Need to file an SR-22: Your insurance company may ask you to file an SR-22 to show that you will be able to pay your bills in the future.
Jail time: If you’re not insured when you have an accident, you could go to jail.

It’s very important to know how to follow Montana’s laws, like making sure your car has at least the state’s minimum coverage. Following these rules will keep you on the right side of the law and will also keep you from having to deal with serious financial problems after an accident.

Montana Minimum Coverage Car Insurance Requirements

In Montana, drivers must have at least the minimum amount of coverage on their car insurance in order to legally drive on the roads. This coverage includes:

$25,000 for bodily injury liability per person
$50,000 for bodily injury liability per accident
$20,000 for property damage liability per accident

Montana operates under a fault-based insurance system. What this means is that the driver who caused the accident has to pay for the other driver’s medical bills and property damage. It is usually a good idea to have more than the bare minimum of insurance to protect yourself from possible financial risks that go beyond the limits of the basic coverage.

Montana does not mandate collision and comprehensive coverage as part of its state minimum auto insurance requirements. However, lenders typically require you to carry both coverages if youre financing or leasing a vehicle. This keeps their investment safe in case of an accident or something else bad happening, like theft or a natural disaster. If you live in Montana and want to protect your car financially against different types of damage, you should get collision and/or comprehensive coverage. What Does Minimum Coverage Cover?.

What Liability Insurance Covers	What Liability Insurance Doesnt Cover
Injuries to others if you are at fault in an accident	Your injuries
Damage to another person’s property if you are at fault in an accident	Damages to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Repairs for weather-related accidents or if you were hit by an animal
Property damage caused by uninsured/underinsured drivers, unless additional coverage is purchased

The table reflects Montanas minimum car insurance requirements, including liability coverage. Coverage specifics depend on your policys terms and conditions.

The Cheapest car insurance in Montana

FAQ

What is the minimum car insurance in Montana?

Liability coverage is the only insurance coverage legally required in Montana. Liability pays for injuries and property damage that you cause to another driver or their passengers in an “at fault” accident.

Does Montana require SR22 insurance?

Filing an SR-22 in Montana is mandatory for drivers with serious offenses like DUI. Not filing can lead to license suspension. Maintain minimum coverage for three years to comply.

Does insurance follow the car or the driver in Montana?

Car insurance usually follows the car in Montana. The types of car insurance that follow the car in Montana are bodily injury liability, personal injury liability, collision, and comprehensive. You’re required to carry bodily injury liability and property damage liability in Montana.

What auto insurance is required in 49 out of 50 states?

Although you may carry optional comprehensive and collision coverage to cover your vehicle, the coverages required by most states’ laws are bodily injury and property damage insurance. These coverages — through state-specific coverage limits — provide financial relief for victims of damages you cause in an accident.

What are Montana’s motor vehicle insurance requirements?

Montana’s motor vehicle insurance requirements can be found in Mont. Code § 61-6-103 (2023). Any motor vehicle that’s registered and driven on public roads must be insured by a liability insurance policy having at least these coverage limits: $20,000 for property damage in an accident. You’re required to have proof of insurance in your car.

How much liability insurance do you need in Montana?

Montana law requires that a motor vehicle operated on public roads be insured by a liability insurance policy that meets the state’s minimum coverage limits in § 61-6-103, MCA: $20,000 because of injury to or destruction of property of others in any one accident.

What is the minimum car insurance limit in Montana?

Bear in mind that this coverage never pays for your injuries or damages to your vehicle. In Montana, the minimum coverage required is listed as 25/50/20 and is explained in more detail below. What are state-mandated car insurance limits?

How much does car insurance cost in Montana?

A driver with a good driving record pays an average of $29 a month for state minimum liability car insurance in Montana for the coverage limits of 25/50/20. The three key aspects of liability coverage encompass bodily injury per individual, bodily injury per accident and property damage.