Montana Auto Insurance Laws, Minimums, Requirements
What mandatory auto insurance laws exist in the state of Montana?
- In the state of Montana liability insurance is the law. With the exception of motorcycles, all vehicles operating on Montana roads must carry the minimum liability insurance amounts.
- The minimum liability coverage in the state of Montana is $25,000 bodily injury or death of one person in any one accident, $50,000, bodily injury or death of two persons in any one accident, and $10,000 injury to or destruction of property of others in any one accident.
- Under Montana law, driving without auto insurance is a misdemeanor. First-time offenders will be fined between $250-$500 or they can go to jail for up to 10 days. In addition, the offender’s license will collect five points. 30 points or more means your license will be revoked. Two-time offenders will have to pay a fine of no less than $350 or be incarcerated for up to 10 days. Second time offenders will lose their licenses for 90 days.
What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):
If you buy automobile insurance in Montana, your policy must include minimum liability coverage of:
25,000 bodily injury or death of one person in any one accident,
$50,000, bodily injury or death of two persons in any one accident,
and
$10,000 injury to or destruction of property of others in any one accident
What are the Rental Car Insurance Requirements?
In the state of Montana, driving without auto insurance is considered a misdemeanor. All vehicles operating on Montana roads, including rental cars, must carry minimum liability coverage. It is important to keep in mind that many Montana auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.
What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?
Uninsured/Underinsured Motorist Coverage is not required in the state of Montana. Because Montana is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums.
What are the rules pertaining to the exclusion from coverage of a driver living in household?
In the state of Montana, auto insurance companies can write policies that exclude household members. These exclusions are listed in the exclusions section, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. It is important to examine your auto insurance policy carefully before you sign on the dotted line.
What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?
If your insurance lapses in the state of Montana, this means you do not have auto insurance coverage. Under Montana law, driving without auto insurance is a misdemeanor. First-time offenders will be fined between $250-$500 or they can go to jail for up to 10 days. In addition, the offender’s license will collect five points. 30 points or more means your license will be revoked. Two-time offenders will have to pay a fine of no less than $350 or be incarcerated for up to 10 days. Second time offenders will lose their licenses for 90 days.
What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?
In Montana, auto insurance companies may use Personal Credit History to determine rates and offers for products. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your credit score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. Although auto insurance companies can use Personal Credit History as a tool to help determine rates, auto insurance companies do not use Personal Credit History alone. They also consider age, gender, where you live, car make and model, how much you drive, and driving history.
Is the state a No Fault or Tort state? What does either mean to the policy owner?
The state of Montana follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at fault person's insurance company. Because Montana is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums.
What is the average auto insurance premium in this state? As of what year?
As of 2006, Montana resident’s average insurance premium was approximately $661, the 37th most expensive in the nation. This was down 3.7% from the previous year. The national average was $817.
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