Cheapest Car Insurance in Montana
Coverage Tailored to Your Unique Needs
Drivers in Montana pay around $1,875 per year or $156 per month for auto insurance
This is slightly below the national average but rates have been ticking up recently. Rates vary a lot by insurer in Montana, which is why it’s smart to get five or more quotes before you buy a policy.
This article will take a deep dive into covering your automobile in Montana and how to get cheaper rates.
Montana Car Insurance Coverage
Montana requires that all drivers maintain liability coverage, which pays for injuries or property damage you cause to others in an accident. As of 2024, the minimum liability coverage requirements in Montana are:
- $25,000 per person for bodily injury
- $50,000 per accident for bodily injury
- $20,000 per accident for property damage
These limits are often expressed as 25/50/20. While these are the minimum requirements, many drivers opt for higher coverage limits to ensure better protection in case of a serious accident.
Factors Affecting Car Insurance Rates in Montana
Several factors unique to Montana influence car insurance rates in the state. The vast, rural nature of much of Montana plays a significant role. While urban areas like Billings, Missoula, and Great Falls may see higher rates due to increased traffic and a higher likelihood of accidents or theft, rural drivers often benefit from lower premiums due to decreased risk.
Montana’s weather conditions also impact insurance rates. The state experiences harsh winters with heavy snowfall and icy conditions, which can increase the risk of accidents. Conversely, Montana has a relatively low population density, which can help keep rates down in some areas.
Where You Live
Where you live in Montana can significantly impact your car insurance rates. Urban areas like Billings, the state’s largest city, typically have higher rates due to increased traffic density, higher crime rates, and a greater likelihood of accidents. For example, a driver in Billings might pay 10-15% more for the same coverage compared to a driver in a smaller town like Lewistown.
Rural areas, which make up much of Montana, often enjoy lower insurance rates. This is due to less traffic, lower crime rates, and a reduced risk of accidents. However, rural drivers should be aware that the distance from emergency services and the increased likelihood of animal collisions (such as with deer) can sometimes offset these savings.
Your Driving Record
Your driving history is one of the most significant factors in determining your insurance premium. A clean driving record with no accidents or traffic violations can lead to substantial savings. In Montana, a single speeding ticket can increase your rates by an average of 20%, while a DUI conviction could raise premiums by 80% or more.
Insurance companies in Montana typically look at the past 3-5 years of your driving history when setting rates. Maintaining a clean record over time can lead to good driver discounts, which can be as high as 20% with some insurers.
The Vehicle You Drive
The make, model, and age of your vehicle play a crucial role in determining insurance costs. In Montana, where many residents drive trucks and SUVs due to the terrain and weather conditions, these vehicles can sometimes cost more to insure due to their higher value and potential repair costs.
Newer vehicles with advanced safety features might qualify for discounts, but their higher value can also lead to increased premiums for comprehensive and collision coverage. Older vehicles might have lower premiums for these coverages due to their decreased value, but they may lack safety features that could qualify for discounts.
For example, a new Ford F-150, a popular vehicle in Montana, might cost more to insure than an older Toyota Corolla, even though the truck has more advanced safety features.
Your Credit Score
Montana is one of many states where insurers use credit scores as a factor in determining premiums. Studies have shown a correlation between credit scores and the likelihood of filing an insurance claim. As a result, drivers with higher credit scores often enjoy lower insurance rates.
The impact can be significant. A driver with poor credit might pay 50-100% more for the same coverage compared to a driver with excellent credit. This practice is controversial, and some states have banned it, but it remains legal in Montana as of 2024
Your Age And Gender
Demographic factors like age and gender also influence insurance rates in Montana. Young drivers, particularly those under 25, typically pay the highest rates due to their lack of experience and higher statistical likelihood of being involved in an accident.
Top Tips for Finding the Cheapest Car Insurance in Montana
Finding affordable car insurance in Montana requires a strategic approach. Here are some actionable tips to help you secure the best rates:
Compare As Many Quotes As You Can
The importance of shopping around cannot be overstated. Insurance rates can vary significantly between providers, even for the same coverage. It’s recommended to get quotes from at least three to five different insurers to ensure you’re getting the best deal.
Online comparison tools can simplify this process, allowing you to input your information once and receive multiple quotes. However, don’t neglect local insurance agents who may have insight into regional factors affecting Montana insurance rates.
Remember, the cheapest option isn’t always the best. Consider the company’s reputation, customer service, and claim-handling process alongside the price.
Get All The Discounts You Can
Montana insurers offer various discounts that can significantly reduce your premiums. Some common discounts include:
- Multi-policy discount: Bundling your auto insurance with homeowners or renters insurance can save you 10-20% on both policies.
- Good driver discount: Maintaining a clean driving record for 3-5 years can lead to savings of up to 20%.
- Military discount: Companies like USAA offer specialized rates for military members and their families.
- Student discounts: Good grades can lead to discounts for young drivers still in school.
- Safety feature discounts: Vehicles equipped with anti-theft devices, anti-lock brakes, or advanced safety features may qualify for lower rates.
- Pay-in-full discount: Some insurers offer a discount for paying your entire six-month or annual premium upfront.
Always ask insurers about all available discounts. Some, like discounts for certain professions or alumni associations, might not be widely advertised.
Make Coverage Adjustments If Possible
While it’s crucial to maintain adequate coverage, there are ways to adjust your policy to lower costs:
- Raise deductibles: Increasing your deductible from $500 to $1000 could lower your premium by 10-20%. However, ensure you can afford the higher out-of-pocket cost if you need to make a claim.
- Drop unnecessary coverage: For older vehicles, it might make financial sense to drop comprehensive and collision coverage if the car’s value is low.
- Usage-based insurance: Some insurers offer programs that base your rates on your actual driving habits, which can benefit those who drive infrequently or very safely.
Remember, while these adjustments can lower your premium, they also increase your financial risk in the event of an accident. Carefully consider your personal financial situation when making these decisions.
The Cheapest Car Insurers In Montana
Hands down the cheapest car insurance provider in Montana is USAA Insurance. However, as you probably already know, you need to be in the military, or a vet, or have a family member who served to qualify. If you qualify, then you can get liability-only auto insurance in Montana for the low cost of $255 per year or $21 per month. This is way cheaper than other insurers in the area like Farmers or State Farm.
Here are the best low-cost insurers in Montana.
Geico
Known for its low rates nationwide, Geico often provides some of the most affordable premiums in Montana. They offer a user-friendly online quote system and mobile app.
- Pros: Competitive rates, strong digital tools
- Cons: Limited local agent presence in Montana
As the largest auto insurer in the U.S., State Farm has a strong presence in Montana with local agents throughout the state.
- Pros: Extensive local agent network, good student discounts
- Cons: Rates can be higher for drivers with accidents or violations
Progressive
Progressive offers unique features like the Name Your Price tool and usage-based insurance options.
- Pros: Innovative tools, accident forgiveness option
- Cons: Customer service ratings are sometimes lower than competitors
Farmers Insurance
Farmers Insurance provides customizable coverage options and a solid local agent network in Montana.
- Pros: Flexible policies, strong local presence
- Cons: Rates can be higher than some competitors
Nationwide Insurance
Nationwide has some of the cheapest rates for Montana drivers and is consistently rated highly for customer satisfaction.
- Pros: Top-rated customer service, competitive rates
- Cons: Rates are a bit higher for teen drivers than other insurers
When comparing these providers, consider factors beyond just price. Look at customer service ratings, claims handling reputation, and coverage options. The cheapest provider isn’t always the best choice if they’re difficult to work with when you need to file a claim.
The Final Word On The Cheapest Car Insurance in Montana
To get the lowest car insurance rates in Montana drivers should first get several auto insurance quotes from both national and regional insurers. USAA and Nationwide have some of the cheapest car insurance quotes for Montana residents. To lower your premiums, you need to raise your credit score, take a defensive driving class, bundle your auto and home insurance, and raise your deductible.
By taking advantage of these proven strategies, you can get cheap car insurance in Montana. Get a free online quote and see how easy it is to save hundreds on Montana auto insurance.
