Car Insurance Coverage in Montana

It is a very interesting state with the most expensive vehicle insurance rates in the country for full coverage. On the other hand, you can get a pretty cheap liability only policy here, which is puzzling. This would mean that efforts to find lower prices would likely pay off, especially if you like the former policy type. When the rates are high to start with, the dollar savings are likely to be large enough to make it worthwhile to spend time and find those discounts. On the other hand, if premiums were affordable already for the latter essential provisions you wouldn’t expect to economize large sums of money.

Uninsured Drivers (11%) are not as big a problem in the Treasure State as many others. Still you should look into buying protection against the possibility of getting involved in an accident with one of them. It would be painful to learn that one of those drivers hit your car and neither he/she nor you have coverage to pay for the losses.

Big Sky Country keeps in the middle in terms of living costs. As its actual and nicknames suggest, it has many mountain ranges and mines and has the largest grizzly bear population around. Although it is one of the largest states it is thinly populated with pretty low density.

Auto Insurance Requirements in Montana

Pictures of MontanaHere are the minimum liability requirements.

  • $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 the commissioner’s page for further updates and information any time you like. These official websites are a 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.

Increasing liability limits well above minimum requirements is highly advised. You should also include Collision, Comprehensive and Uninsured Driver Coverage in your policy, especially if you have a valuable vehicle. One of the key characteristics of this state is that premiums are really widely spread among companies. You should start with getting some prices from several of them.

A comparison website like this one would make this process a lot easier. You would find the carriers and their offers here and start getting quotes directly from them. This may take a bit longer than filling one quote form and getting several results. However, you know which ones you are applying this way. If you don’t like some of them in the list you don’t have to approach them. There are a few 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 insurers in the US while others may prefer smaller names. What we would advise is to be open-minded about the whole process. Having assumptions about premiums, providers or coverage will restrict your viewpoint and choices. Why would you want to narrow the options?

First get several vehicle insurance quotes and see where you are exactly. If there is one 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 one than you thought you would. If you can save money and be protected adequately you would be pleased that you took the time to explore alternatives.

Automobile Insurance Costs in Montana

Figures are contrasting here. According to the latest reports from NAIC, average premium expenditure is $679, which is $162 cheaper than the national average. Looking at this figure you would think that rates are low in Montana. However, another study that is based on full coverage quotes contrasts this view and finds it 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 number of $1,325.

Seeing how low the actual median spending 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 its peaceful nature where vehicle owners feel comfortable with the risks of not protecting their own vehicles. Also, it may be that they don’t actually own expensive automobiles to worry about.

Clearly there are several factors in MT that push the prices up. The main one appears to be 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 get too comfortable with quiet roads and step on the gas, especially if they are familiar with their surroundings. There may be many more accidents in the cities but they are usually nothing more than a fender bender.

Probably one of the other reasons is the lack of fierce competition. MT is one of the least populated in the US with just over 1 million residents spread out in the vast countryside. It isn’t densely populated with a handful of small cities and only one of them with a population over $100,000. This makes it harder for companies to run aggressive campaigns or establish a widespread agency base. Competition in the market is one of the main reasons for affordable prices and lack of it removes the key reason for them to cut rates.

The Most Affordable Auto Insurers in Montana

Here are the most competitive ones and they remain to be the cheapest in most cities and towns. One interesting finding is that costs in the largest cities of Billings, Missoula and Great Falls are lower than the average. This seems to support lack of competition as a reason for high premiums.

  1. State Farm, $741
  2. GEICO, $819
  3. QBE Farmers Union, $930

The price difference between the least expensive (State Farm) and third cheapest (QBE Farmers Union) is already 20%. And this gap can open up to nearly twice the difference between the cheapest and most expensive. That is why you should make sure you find one of the former in your zip code if you want to save.