Montana is one of the states with the most expensive car insurance rates in the country. This would mean that efforts to find cheap auto insurance in Montana usually pay off. The same percentage discount has a different cash value when you live in an expensive premium state in comparison with a cheaper state. When your premium is expensive to start with, the dollar savings are like to be large enough for you to spend time and find those discounts. On the other hand, if your premium was affordable already you wouldn’t expect to save large sums of money.
Uninsured Drivers (11%) are not as big a problem here as many other states. Still you should look into buying uninsured drivers coverage. It would be painful to discover that one of those drivers hit your car and neither the driver nor you have coverage to pay for your losses. The Treasure State keeps in the middle in terms of living costs.
Car Insurance Requirements in Montana
Here are the minimum liability auto insurance requirements in MT.
- $25,000 for bodily injury or death per person.
- $50,000 total for bodily injury or death per accident.
- $10,000 for property damage.
Check state website for further updates and information any time you like. These official websites are good source of information and confirmation. They can tell you what would happen in a particular situation and you can find out about penalties and fines.
Further coverage well above minimum requirements is highly advised. You should also include Collision, Comprehensive and Uninsured Driver Coverage in your policy. There are a few great packages sold in your state that can cover your car properly at affordable prices. These policies are offered by insurers you would recognize easily and be happy to work with. You should start with getting some prices through several companies.
A comparison website like this one would make this process a lot easier. You would find the companies and their offers here and start getting quotes directly from the insurers. This may take a bit longer than filling one quote form and getting several quotes. However, you know which companies you are applying this way. If you don’t like some of the companies in the list you don’t have to approach them. There are plenty others.
Some people may be choosy about the companies they are willing to work with. This could be for many reasons including political ones. Some like the 10 largest automobile insurance companies in the US while others may prefer smaller firms. What we would advise is to be open-minded about the whole process. Having assumptions about premiums, insurers or coverage will limit your mind and choices. Why would you want to narrow your options?
First get several vehicle insurance quotes and see where you are exactly. If there is a quote that is popping out of the page it is great. Otherwise, you need to look deeper into their details. You can compare the coverage with each other and learn about the companies behind them. Then you may end up going with a totally different provider than you thought you would. If you can save money and be insured adequately you would be pleased that you took the time to explore your options.
How Much Does Automobile Insurance Cost in Montana?
Premium figures are contrasting in the Big Sky Country. According to the latest reports from National Association of Insurance Commissioners (NAIC), average premium expenditure is $679 in MT, which is $162 cheaper than the US average. Looking at this figure you would think that car insurance rates are low in Montana. However, another study that is based on full coverage vehicle insurance quotes contrasts this view and finds Montana to be the second most expensive state to buy full coverage auto insurance. The average estimated premium of $2,297 is nearly $1,000 more than the US average of $1,325.
Seeing how low average premium expenditure is in comparison to full coverage costs it is a fair assumption that most Montanan drivers buy basic liability only car insurance. This may be due to peaceful nature of the state where vehicle owners feel comfortable with the risks not to buy full coverage insurance.
Clearly there are several factors in MT that push up the premiums. The main one appears to the accident rates. According to the Insurance Institute for Highway Safety, Montana has the highest vehicle accident fatality rate in the country with 22.6 deaths per 100,000 people – twice the national average. This is a well known phenomenon that wide countryside roads with fewer cars can lead to accidents with fatalities because of the speed. Motorists gets too comfortable with quite roads and step on the gas, especially if they are familiar with their surroundings. There may be much more accidents in the cities but they are usually nothing more than a fender bender.
Probably one of the other reason is the lack of fierce competition. MT is one of the least populated states in the US with just over 1 million residents spread out in the wast countryside. it isn’t a densely populated state with few small cities and only one of them with population of over $100,000. This makes it harder for companies to run aggressive campaigns in the state or establish a wide-spread agency base. Competition in the market is one of the main reasons for affordable auto insurance and lack of it removes the key reason for insurers to cut their rates.
Cheapest Auto Insurance Companies in Montana
Here are the most competitive car insurance companies in MT and these companies remain to be the cheapest in most cities and towns. One interesting finding is that vehicle insurance costs in the largest cities of Billings, Missoula and Great Falls are lower than the state average. This seems to support lack of competition as a reason for high insurance costs.
- State Farm, $741
- GEICO, $819
- QBE Farmers Union, $930
The price difference between the least expensive insurer (State Farm) and third cheapest (QBE Farmers Union) is already 20%. And this gap can open up to nearly twice premium difference between the cheapest and most expensive insurer in the state. That is why you should make sure you find one of the cheapest insurers in your zip code if you want to save on auto insurance.