Montana Car Insurance Laws & State Minimum Coverage Limits

Montana car insurance laws require minimum liability rates of 25/50/20 for bodily injury and property damage coverage. All Montana drivers are required to not only have insurance but also be prepared to provide proof of insurance upon request of a law enforcement officer

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Eric Stauffer is a former insurance agent and banker turned consumer advocate. His priority is to help educate individuals and families about the different types of insurance they need, and assist them in finding the best place to get it.

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Written by Eric Stauffer
Founder & Former Insurance Agent Eric Stauffer

Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Mar 4, 2022

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Montana State Flag

Montana law requires that all drivers carry a minimum amount of car insurance in order to protect all drivers on the road. Any driver that does not carry the required coverage will face legal consequences.

Mandatory Montana Car Insurance Coverage

The law in Montana sets out basic liability limits that every driver must carry at all times. This coverage provides for injuries and death to other people in an accident as well as property damage.

The legal minimum coverage is:

  • Bodily Injury coverage in the amount of $25,000 per person and $50,000 per incident to pay for injuries done to others as a result of an at-fault accident
  • Property damage coverage in the amount of $20,000 to pay for damage to another person’s vehicle

While this is the coverage required in order to be legal in Montana, most people recognize that these limits are very low, particularly considering how quickly a serious accident can add up. As a result, many Montana drivers choose to increase their limits above the minimum in order to be better protected by their auto insurance policy.

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Optional Montana Car Insurance Coverage

In addition to increasing their liability limits, many people choose to add more optional coverage in order to create a comprehensive policy. There are a number of options available to Montana drivers to make up a full coverage policy.

The most common coverage options include:

  • Collision coverage, which pays for damage to your vehicle in the event of an at-fault accident.
  • Comprehensive coverage, which will pay for damage or loss of your vehicle in any non-accident event, such as a theft, vandalism, fire, or weather-related damage. This coverage usually also pays for windshield repair and replacement and other glass damage
  • Uninsured/Underinsure Motorist, a coverage that pays for bodily injury and property damage done by another driver who is either uninsured or does not have enough insurance to cover the damage done.
  • Rental Reimbursement, which pays for a rental car during any covered insurance claims.
  • Towing & Labor, which will pay for towing and roadside assistance costs in a non-accident incident.

Insurance companies in Montana may offer a range of other coverage options as well, depending on the company. Options from your insurance company may include new car replacement, accident forgiveness, stereo equipment coverage, and many more.

Proof of Insurance Laws and Penalties in Montana

All Montana drivers are required to not only have insurance but also be prepared to provide proof of insurance upon request of a law enforcement officer. Failure to provide proof may result in several penalties.

In 2012 the state introduced the Montana Insurance Verification System. This electronic system allows law enforcement to quickly determine whether or not a vehicle is insured. Insurance companies in Montana submit information to the system confirming insurance coverage for each vehicle on the road. Cancellations and lapses in coverage are also reported.

Drivers who are caught driving uninsured can face the following penalties:

  • For a first offense, a fine of $250-$500 and a possibility of up to 10 days in jail
  • For a second offense, the fine is raised to a minimum of $350. In addition, the driver’s license will be revoked for 90 days and there will be 5 points levied against the driver’s license. Again, there is a possibility of jail time
  • For a third or any subsequent offense, fines are raised to $500 with the possibility of jail time for up to 6 months

A driver who is involved in an accident while uninsured can be held financially responsible for all damage caused by the accident, in addition to facing charges for driving uninsured.

Shopping for Car Insurance in Montana

Montana ranks at number 31 in the nation when it comes to car insurance rates according to a 2017 survey. Auto insurance rates have drastically decreased since the 2015 study that showed Montana as the second most expensive state for insurance. The state’s average annual insurance premium is $1217 compared to the highest state, Michigan, with an annual average of $2394.

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High-Risk Drivers in Montana

High-risk drivers, who may have issues such as multiple accidents, tickets, or major violations may find it difficult to obtain insurance. Montana assists these drivers by offering an assigned risk program that allows all drivers to get the coverage they need to drive legally.

The Montana Automobile Insurance Plan, part of the Western Association of Automobile Plans, is designed for drivers who have been turned down for insurance on the voluntary market. This is a last-resort option and will still be expensive, but ensures that the driver will not be denied coverage.

Teen Drivers in Montana

Montana’s Graduated License Law helps teen drivers to build the driving skills they need safely over time. Each stage of the licensing process has specific requirements, rules, and restrictions that help teens stay safe on the road.

Learner License

There are two paths to licensing for Montana teens, each beginning with a learner license.

There are three types of learner license:

  • Teacher Education Permit (TEP) – includes only driver education instructor supervision
  • Traffic Education Learner License (TELL) – allows for a parent or guardian to supervise
  • Learner License – this license must be applied for with parental permission to allow other drivers to supervise

A teen can obtain the TELL at the age of 14.5 if they meet the following requirements:

  • Enroll in a Montana high school driver education course
  • Pass the written knowledge test

If the teen chooses not to take driver education, they must wait until the age of 16 to obtain the TELL, and must still pass the knowledge test.

With the TELL, teens can drive with a parent, guardian, or driving instructor as they learn how to drive. The teen is required to spend at least 50 hours practicing driving skills, and 10 of those hours must be at night, before moving on.

Restricted License

The next step in the licensing program is the restricted license. This license allows the teen to drive without supervision, and can only be obtained after:

  • At least 6 months with a learner license
  • 50 hours of practice with 10 hours at night
  • 6 months free of violations
  • Successful completion of a road test

With this license, teen drivers are still required to follow a set of restrictions:

  • Driving is not permitted between 11:00 p.m. and 5:00 a.m., with the exception of approved school, work, farm, emergencies, or religious activities
  • There cannot be more than one passenger in the car younger than 18 years old outside of family members for the first 6 months
  • There cannot be more than three passengers in the car younger than 18 years old outside of family members for the second three months

Full License

After one year with a restricted license, or at the age of 18 – whichever is first – the teen can graduate to the full license, at which point all restrictions are lifted.

Teen drivers in Montana are subject to the same insurance laws as any other driver. A teen driver can stay on that policy even when away at school until they have established a permanent residence away from home.

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