Montana car insurance requirements and laws

Minimum car insurance requirements

Montana requires owners to carry a motor vehicle liability policy with at least 25/50/20 limits for each insured vehicle (MCA 61-6-103). The $20,000 property damage minimum is a little lower than in many neighboring states. Compare states with the state car insurance requirements lookup.

What the minimums mean in practice. If you cause a crash and the other driver has $40,000 in medical bills, your 25/50/20 policy pays $25,000 and leaves $15,000 for which you can be sued. If you hit a $45,000 pickup, the $20,000 property damage limit covers less than half. Rural crashes at highway speeds tend to be severe, which makes minimum limits especially thin in Montana. how much liability coverage do you need? and the How much car insurance do I need? can help you choose.

Fault system and what it means after a crash

Montana is an at-fault state. The driver who causes the crash is responsible for the other side's medical bills, lost wages, pain and suffering and vehicle damage, paid by their liability insurer up to the policy limits. You can claim against that insurer, use your own coverage and let your insurer pursue subrogation, or sue. See no-fault vs at-fault states.

When both drivers share the blame, Montana uses modified comparative negligence: you can recover only if your negligence was not greater than that of the people you sue, and your damages are reduced by your percentage (MCA 27-1-702). At 50% fault you can still recover half; at 51% you recover nothing (comparative vs contributory negligence).

Deadlines differ by type of claim. Personal injury lawsuits must generally be filed within three years (MCA 27-2-204), but claims for damage to a vehicle or other property have a two-year limit (MCA 27-2-207). See statutes of limitations for car accident claims.

Optional coverage worth considering here

• Uninsured and underinsured motorist coverage. Montana law requires insurers to include UM at the 25/50 minimum, but you can reject it. The Insurance Research Council estimates 7.2% of Montana drivers were uninsured in 2023, well below the national 15.4%, yet low liability minimums make underinsured drivers a real risk after a serious crash (uninsured and underinsured motorist coverage explained).
• Medical payments coverage. Montana has no PIP, and long distances to trauma care can make emergency treatment and air ambulance bills large (Medical payments coverage (MedPay) explained).
• Comprehensive. Deer, elk and other wildlife collisions, hail and windshield damage from gravel roads are common claims (comprehensive coverage explained, full glass coverage and zero-deductible windshield repair).
• Roadside assistance for long rural trips in winter (roadside assistance coverage vs auto club membership).

What drives rates in Montana

The NAIC puts Montana's average annual expenditure at $975 in 2023, below the national average of $1,282 (What NAIC auto insurance data measures).

Low traffic density and a low uninsured rate help hold costs down. Pushing in the other direction are high-speed two-lane highways, long distances that raise crash severity, frequent wildlife collisions, hail, and winter driving. Repair costs can also run higher in rural areas where parts and body shops are farther away (why car repairs cost so much more than they used to). Rates vary between Billings, Missoula and rural counties (Why your ZIP code changes your car insurance price).

Penalties for driving uninsured

Montana penalties increase with each conviction for driving without required insurance (MCA 61-6-304):

• First offense: fine of $250 to $500.
• Second offense: fine of $350, and the court orders surrender of the registration receipt and plates for the vehicle involved.
• Third or later offense: fine of $500, up to 10 days in county jail, or both, plus surrender of registration and plates.

An uninsured crash also leaves you personally responsible for the other side's damages. See penalties for driving without insurance.

SR-22 and high-risk drivers

The Montana Motor Vehicle Division can require proof of future financial responsibility, usually an SR-22 filed by your insurer, after serious convictions such as DUI, after an uninsured crash or to reinstate a suspended license. The MVD or the court order will state how long the filing must stay in place. SR-22 insurance explained, Car insurance after a DUI and high-risk car insurance: options when insurers say no explain your options.

Insurers with a strong presence in Montana

National carriers State Farm, Progressive, GEICO and Allstate write a large share of Montana policies, along with Farmers Insurance and Liberty Mutual (including its Safeco brand sold through independent agents). USAA serves military families around Malmstrom Air Force Base. A Farm Bureau insurer and several regional mutuals also sell in the state through local agents (regional car insurers: when smaller carriers can beat the giants, Farm Bureau insurance: membership, eligibility and how it works).

Where to get help

The Montana Commissioner of Securities and Insurance, part of the Office of the Montana State Auditor, regulates insurers and helps consumers resolve problems with claims and policies. Call 800-332-6148 (toll free) or the insurance consumer services line at 406-444-3525, file a complaint at csimt.gov, or visit 840 Helena Ave., Helena, MT 59601. how to file a complaint against a car insurance company explains what to include. For an injury claim, consult a licensed Montana attorney.