In the Big Sky State, most vehicles driven on the roadways must have current liability insurance. This Montana law does provide exceptions for motorcycles, tricycles and farm equipment, which are all abundant in most areas in the state. There is a high cost to Montana car insurance due to a range of factors including the age at which teenagers can get their driver's license, the percentage of drivers currently without insurance and the minimal penalties for those who are cited for not having valid liability insurance.

Liability Requirements

Montana requires that every motor vehicle on the road that is not used for commercial purposes has a minimum amount of liability insurance to cover expenses that may be incurred due to an automobile accident. The minimum requirements in the state of Montana include $25,000 per person for injuries sustained, $50,000 for two person's medical expenses in one accident and $10,000 for property damage each incident. Vehicles such as motorcycles, tricycles, ATVs and all types of farm use vehicles are all exempt from the law requiring liability insurance. Uninsured and under insured motorist insurance is also not a requirement for Montana vehicles although it is highly recommended.

Another little known law in Montana is that if a person has financed a vehicle on which they owe more than $2500, they must also carry a minimum amount of collision and comprehensive insurance on that vehicle. The requirements for coverage and the minimum deductible will vary based on the lender.

Penalties for No Insurance Violations

The State of Montana has recently adopted harsher penalties for no-insurance violations although it has not been proven to be an effective deterrent. Still, studies show that about 10% of those involved in auto accidents do not currently have the minimum liability Montana auto insurance on their vehicle. Even with the harsher penalties, Montana is still one of the most lenient states when it comes to punishing those who break the liability insurance law. The penalty for the first offense can still result in up to 10 days in jail, although this is very rare for a first offense. Most defendants pay only a monetary fine for their first offense that can range from $250-$500. Ironically, a defendant can be charged up to $500 for a first offense, but the fine for the second offense is only $350 plus up to 10 days in jail and having the registration suspended for up to 90 days. The third offense adds up to six months in county jail, and the fine increases up to $500. However, this type of jail time is highly unlikely in Montana. The fourth offense is when the violations become severe and jail time is often served. According to Montana state law, on the fourth offense, the defendant can have identical penalties as the third offense, although at this point, the driver's license can also be suspended for a time imposed by the judge.

The only way to have the license or registration reinstated is to provide the court with proof of current liability insurance and pay a reinstatement fee for both the state and the county. In some jurisdictions, the defendant may also be required to pay a surcharge to the city that imposed the sentence as well.

Cost of Insurance In Montana

Montana residents have a lower cost of living as well as a lower minimum wage than most other states, but they rank at the 33rd spot on the list of the most expensive states for auto insurance. The average yearly premium for one vehicle with liability insurance only is $655, which makes Montana cheap auto insurance a rare thing to find. This is in part because it can be very dangerous to drive in Montana, and roughly 10% of drivers involved in auto accidents do not have the required liability insurance.

Montana Roadway Statistics

Winters in Montana prove hazardous every year. There is often fresh snow and blowing snow causing blizzard like conditions on most Montana highways. Many drivers continue on the 70 mile per hour speed limits during these conditions which often cause auto accidents. While some of these accidents are only minor, others prove fatal, and all increase the risk for insurance companies in the state. These statistics also create higher Montana auto insurance ratings that also boost the average premium across the state.

One statistic that helps to lower the overall cost of Montana auto insurance is seat belt usage. Montana was one state where the seat belt requirement was minimal, however, with the implementation of the state's "Buckle Up Montana" initiative, seat belt use has increased to the point where almost 80% of all passengers and drivers now wear their seat belts at all times.

Montana is one place where a very low crime rate is observed. In the entire state in 2009 for instance, only about 1700 car thefts were reported. The most common type of auto theft involves teenagers taking the family car without permission. When the rare stranger theft occurs, it is often older model trucks or other 4x4 vehicles. For instance, the most stolen car in the state is the 2004 Dodge Ram; number two is the 1995 Chevy 1500 and number three is the 1996 Ford Explorer. The 1993 Honda Civic and the 1987 Honda Accord made the list at numbers five and six.

Montana is also a very rural state where the residents may travel several hours before they get to the next town. This makes it difficult to walk places or rely on public transportation, so most households own their own vehicles. This also increases the risk of loss and Montana car insurance ratings.

The speed limit for two-lane highways in the state range from 55 miles per hour all the way up to 70 miles per hour. The limit for those driving on the interstate can reach 75 miles per hour. The increased speed limits also contribute to serious auto accidents, which is another factor that increases the cost of car insurance in Montana.

Teenagers also pose the biggest risk factor when determining insurance costs in Montana. Montana recently adopted the graduated license program for teens aged 15-18, but it does not apply to those who get their license on their 18th birthday. Since Montana is one of very few states where 15 year olds are allowed to obtain a driver's license, this adds dramatically to the risk of accidents and loss due to an auto accident. The only thing that will decrease the annual premium for the parent is for the teen to achieve honor roll status in school to qualify for the good student discount. During the Montana car insurance quotes, the parent will be asked the age of the teenage driver in the home as well as the grades they earn to determine if they are eligible for the discount.

Insurance Companies in Montana

State Farm, Farmers and Allstate all have agents across the State of Montana although many residents choose to go through other companies like Geico and Progressive that offer cheap auto insurance through the internet. With most residents living in rural areas, it is much easier to get Montana auto insurance quotes online rather than to drive to the closest town to speak with an agent. Since the Montana roadways are so dangerous, many insurance companies feel the risk of loss is too great to insure those living in the state. The options for Montana cheap car insurance are far fewer than in other parts of the country.

http://data.opi.mt.gov/bills/mca/61/6/61-6-103.htm