Car insurance in Montana

Posted on September 26, 2014

According to the National Motorist Association, Montana is the state in which you are least likely to receive a traffic ticket. However, Montana drivers still face the high cost of car insurance. Read on for the latest available stats, facts and rates on car insurance in in the state of Montana. Use this info to customize the optimal Montana auto insurance package for your budget and your lifestyle.

Montana Minimum Liability Coverage

Montana state law mandates that drivers must have 25/50/20 insurance coverage for each owned vehicle. In other words, drivers in the state of Montana are legally required to purchase at least $25,000 in Personal Injury Protection (PIP), $50,000 in coverage against injuries to other individuals (also known as per-accident coverage), and $20,000 against property damage. Still, insurance experts suggest that 100/300 coverage is more realistic in terms of covering the real costs of an accident. They also recommend UMI, which protects a driver who is hit by an uninsured motorist, or by a driver who flees the scene of the accident.

Penalties for Driving Without Insurance in Montana

For the first offense, the legally imposed penalty for driving without insurance on Montana roads is a fine as high as five hundred dollars and/or ten days in jail. The second offense within a five year time span results in a bigger fine, ten days in jail and suspension of registration and license plates until proof of insurance is provided. Third and subsequent convictions within a five year period face fines of up to five hundred dollars, six months in jail and the possibility of having the license revoked.

Auto Insurance Rates in Montana

The average yearly premium for car insurance on a vehicle owned in the state of Montana was $2,297 in 2016. This figure, quite a bit higher than the national average of $1,347, made Montana the second most expensive state in the nation to purchase car insurance in 2016. According to reports, one reason for the high rates could be that Montana is also ranked sixth among states for the percentage of fatalities caused by drivers exceeding the speed limit. Despite the lower-than-low population density, statistics have repeatedly shown that states with sprawling, open landscapes seem to excite a driver’s natural inclination to pick up speed.

Low Cost Car Insurance Programs in Montana

Car insurance companies all over the state offer competitive rates and incentive discounts to reward drivers who maintain a sense of social responsibility. The Accident Free Discount is for going three years without an accident. The Good Driver Discount is for drivers who avoid moving violations. The Good Student Discount is for adult full time students who excel academically. The Multiple Auto Discount is for owners of more than one vehicle. These are just a few of the discounts available in Montana. Apply for every available discount. Doing this can add up to hundreds of dollars saved each year in car insurance premiums.

Obtaining Auto Insurance Quotes in Montana

Based on recent consumer reviews, cost comparisons and customer satisfaction ratings, the most popular nationally recognized auto insurance providers in Montana are AAA, Allstate, Geico, Farm Bureau, Nationwide, State Farm and 21^st Century Insurance. On the other hand, some Montana residents prefer smaller sized local carriers like Western National. Either way, Montana is home to countless car insurance agents, all of them providing automobile coverage at competitive rates. Compare quotes.

Montana Car Insurance

Scroll down to find facts and figures pertaining to Montana car insurance. This page reveals many interesting demographic details about the state of Montana, and teaches Montana drivers how to lower their annual premium rates on car insurance as much as possible.

Analyze Montana zip code demographics, Montana poverty rates, Montana unemployment, Montana population stats, Montana median incomes, and other factors that affect car insurance rates in the state of Montana. Learn about the types of car insurance coverage Montana drivers need, as well as the minimum coverage amounts mandated by Montana car insurance laws. Also view a list of of the 10 largest car insurance companies in America, followed by a list of the 10 largest car insurance companies in the state of Montana.

We’ll even tell you the average annual car insurance premium rate for the state of Montana, so you can compare it to the rates on your own Montana car insurance policy. Also see demographic descriptions of the four least expensive and the four highest priced zip codes in the state of Montana to buy car insurance.

Best of all, find out how to get all the car insurance discounts that are possible on your personal Montana car insurance policy.

Montana Car Insurance Statistics

In land area, Montana is the 4^th largest state in America. Only the states of Alaska, Texas, and California cover more square miles than the state of Montana. However, in terms of population density, Montana ranks 48^thamong states. Only the states of Alaska and Wyoming have fewer people per square mile than Montana does. The state of Montana, whose land area is roughly 147,000 square miles, is home to just over one million people, according to a census bureau estimate from 2016. The median resident age across the vast state of Montana is about 39.9 years.

The unemployment rate in Montana is about 3.9 percent, which is safely lower than the national average unemployment rate of 4.4 percent. However, the poverty rate in Montana is roughly 14.6 percent, a touch above the national average poverty rate of 13.5 percent.

Researchers recently determined that the statewide average annual premium rate for a car insurance policy secured in the state of Montana was around $1,224, a forgivable distance beneath the overall national average car insurance rate, which was about $1,355 at the time. Montana is neither the most expensive nor the least expensive state in America to buy car insurance.

In a separate study, a team from the Insurance Research Council analyzed a sample of drivers in Montana. The study concluded that roughly 14.1 percent of vehicles on Montana roads are uninsured. That’s about 1 out of 7 drivers in Montana operating vehicles without insurance. The overall average rate for uninsured drivers in America is 12.6 percent.

The 10 Largest Montana Car Insurance Companies

How easy is it for you to decide which carrier is best for your personal Montana car insurance policy?

It may be okay to pick one of the largest carriers, or perhaps one whose name sounds familiar to you. These are reasonable approaches to purchasing car insurance, but a little extra research can save you a lot more money.

Montana maintains many major car insurance carriers, as well as quite a few smaller, regional companies. To start your research, here is a list of the 10 largest car insurance companies in America, followed by a list of the 10 largest car insurance companies in Montana. Car insurance companies on both lists are ranked by the total annual amount of direct premiums written. This amount measures each company’s total market share.

Researchers have concluded that the ten largest auto insurance companies in America are

Allstate Insurance
State Farm Insurance
Geico
Progressive Insurance
Nationwide Group
AAA
Liberty Mutual Insurance
21^st Century Insurance
GMAC
AIG

Below is the list of the ten largest car insurance companies in the state of Montana:

Rank	Company	Premiums ($)	Market Share (%)
1	State Farm Group	$125,091	21.42
2	Farmers Insurance Group	$71,686	12.28
3	Liberty Mutual Insurance	$69,245	11.86
4	Progressive Insurance Group	$64,855	11.11
5	Mountain West Insurance Group	$35,349	6.05
6	USAA Group	$34,259	5.87
7	Allstate Insurance Group	$27,758	4.75
8	The Hartford Insurance Group	$24,499	4.2
9	Berkshire Hathaway Insurance	$24,301	4.16
10	QBE Americas Group	$17,769	3.04

It seems that State Farm Insurance is the most popular carrier by far in the state of Montana, not that you should choose that one, necessarily. Maybe a smaller, regional carrier might be better for you. Or maybe the carrier you choose will depend on your personal demographics. For instance, seniors might prefer The Hartford Insurance Group, because The Hartford is the official insurance carrier for the American Association of Retired People (AARP). Military personnel and their families may prefer USAA, an insurance company specially designed for people in the military. There is really no such thing as The One Best Montana Car Insurance Company.

Here’s how to save money on your Montana car insurance policy.

Cutting Costs on Montana Car Insurance

One solid way for drivers in the state of Montana to lower their car insurance premium rates is by studying consumer reviews of at least a few Montana car insurance companies. Then make a list of the companies you like, or the ones that best suit your needs.

Then visit the company websites and get online quotes from each car insurance company, and even from several zip codes within each company. For instance, you can check out the rates on your Montana home zip code, your Montana work zip code, and your Montana school zip code.

Above all, don’t forget to ask about the discounts! Each auto insurance company offers slightly different discounts of varying percentages. Some discounts will be automatically applied to your online quotes. For instance, most auto insurance carriers these days offer a discount for buying your policy online. But you might be able to get an added discount (or two) by calling a company agent. For instance, you may qualify for an occupational discount if you are a teacher, a public servant, a member of the armed forces, or an insurance underwriter, to name just a few favorable occupations in the eyes of insurance underwriters. The point is that you must aggressively scout out the discounts in order to save the most money on annual rates for Montana car insurance.

What Types Of Car Insurance Do Montana Drivers Need?

According to car insurance laws in the state of Montana, each vehicle owned must have minimum coverage amounts of $25,000 for bodily injury to others, $50,000 in per-accident coverage, and $20,000 to cover the cost of property damage.

However, drivers who purchase only the minimum coverage required by the state will often find that these amounts are not enough to cover the cost of vehicle repairs and/or medical bills caused by actual traffic accidents. That’s why insurance analysts in Montana (and all across America) recommend coverage amounts of $100,000 for personal injury protection, $300,000 against bodily injury to others, and at least $50,000 to cover the cost of property damage.

Although it is not required by Montana state law, it is highly recommended that Montana drivers also buy the same coverage amounts in uninsured and underinsured motorist insurance (UMI). This is just common sense, because not only does the state of Montana have its fair share of uninsured vehicles, but even insured vehicles are often underinsured, because the state-mandated minimums are too low.

Mysterious Montana Traffic Laws

In the state of Montana, it is illegal to have a sheep in the cab of your truck without a “chaperone.”
In Helena, it is illegal to throw any item across a street.
In Whitehall, it is illegal to operate any vehicle with ice picks attached to the wheels.

Best And Worst Zip Codes For Montana Car Insurance

The reason why Montana car insurance rates vary between zip codes is because of changes in population densities, unemployment data, poverty statistics, median income levels, crime rates, the percentage of uninsured drivers on the roads, and other factors that affect car insurance rates from one zip code to the next.

Here is a list of the four most expensive zip codes (on average) in the state of Montana to buy car insurance. Annual premium rates in these zip codes can range from about $825 to around $1,910, with an average annual premium rate of around $1,318.

Zip Code	Pop Density	Unemployed %	Poverty %
59912 (Columbia Falls)	99	7.30%	13.80%

Columbia Falls is located less than 50 miles west of the Blackfeet Indian Reservation, less than 50 miles south of the Canadian border, and roughly 100 miles north of Missoula. This Flathead County neighborhood is home to roughly 14,000 people. The poverty rate in this zip code is slightly below the Montana state average of 14.6 percent. However, the unemployment rate is near twice the 3.9 percent state average.

Zip Code	Pop Density	Unemployed %	Poverty %
59901 (Evergreen)	113	6.10%	13.40%

Evergreen is a northeastern suburb of Kalispell. More than 51,000 people live in this zip code. The poverty rate is slightly below the state average, although the unemployment rate is high in this neighborhood.

Zip Code	Pop Density	Unemployed %	Poverty %
59926 (Martin City)	39	21.50%	31.10%

Hard to believe they call it a city when fewer than 400 people live in this sparsely populated mountain town. However, the sky high unemployment and poverty rates do make this neighborhood appear more city-like.

Zip Code	Pop Density	Unemployed %	Poverty %
59925 (Marion)	4	11.40%	16.80%

Marion is located on the northern edge of the Flathead Reservation. This neighborhood is home to roughly 1,400 people. Despite the lighter than air population density, the unemployment and poverty rates are above the state averages in this zip code.

Now compare the Montana zip codes listed above to the neighborhoods outlined below. Here is a list of the four least expensive zip codes (on average) in the state of Montana to buy car insurance. Annual premium rates in these areas can range from around $710 to about $1,720, with an average annual premium rate of around $1,110.

Zip Code	Pop Density	Unemployed %	Poverty %
59635 (East Helena)	100	6.70%	7.00%

This zip code spans Lewis & Clark, Jefferson, and Broadwater Counties, although only about 7,200 people live here. So the population density is very low. Unemployment is rather high, but the poverty rate is less than half of the 14.6 percent state average.

Zip Code	Pop Density	Unemployed %	Poverty %
59625 (Helena)	0	0%	0%

This zip code surrounds the Carroll College campus, and is sandwiched between two mobile home parks in North Helena. We could not find demographic information for this zip code, so it remains unclear why this is one of the cheapest zip codes for Montana car insurance rates.

Zip Code	Pop Density	Unemployed %	Poverty %
59601 (West Helena)	216	4.90%	16.40%

This Lewis & Clark County zip code encompasses West Helena, and is home to about 30,000 people. The unemployment and poverty rates are just slightly above the 3.9 percent and 14.6 percent state averages, respectively.

Zip Code	Pop Density	Unemployed %	Poverty %
59602 (Helena)	48	4.50%	8.60%

This zip code is home to about 26,000 people. The unemployment rate is only slightly high, and the poverty rate is well below the state average. What’s more, the population density is a breeze.

Overall, the sprawling state of Montana is home to 404 zip codes scattered over 56 counties that encompass 360 cities, from Anaconda to Wolf Point and everywhere in between. There is a difference of more than $200 in average annual auto insurance premium rates between the cheapest zip codes and the most expensive zip codes in the state of Montana.

How much do you think you can save on Montana car insurance today? Why not go online and find out?

by admin