A Guide to Auto Insurance in Montana (MT)

Did you know that Montana auto insurance is one of the most expensive in the country? Unfortunately It's true. Montana ranked as the 4th most expensive state in terms of the cost of auto insurance premiums in 2010. But the fact remains that auto insurance is a must, and there are ways that you can get a cheaper policy with good cover, and so in this article I am going to discuss some of them.

However, before you start looking for the best policy it's important to understand the state laws that surround insurance in Montana. This way you can get a good quality Montana auto insurance policy without spending an arm and a leg.

What is required in Montana?

If you live in this state then you must carry at least the minimum amount of liability coverage. Keep in mind; you can raise these minimums in order to feel more protected, but you will pay more for your premium.

The decision should be based on how much you will be driving the vehicle, and whether or not you're more susceptible to an accident occurring, as well as more much you can afford to pay.

The minimum amounts associated with Montana auto insurance liability coverage 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
* $10,000 injury to or the destruction of property of others in any one accident

A 25/50/10 setup is pretty much the "norm" around the country, so this shouldn't come as any surprise.

However, an important area to consider is underinsured/uninsured motorist coverage. It's not something that is required from the state of Montana, but there is one reason why it's important to own. See, this state utilizes a Tort system as opposed to a No-Fault system. Don't worry; we'll explain it in a moment. Just remember that it would be wise to consider uninsured/underinsured coverage and add it to your policy.

What is a Tort System with regards to Montana Auto Insurance?

In short, a Tort system basically means that someone has to be "at-fault" when an accident occurs. Taking this approach to liability actually helps the insurance companies from paying out damages. Unfortunately this can be a huge issue if the other motorist is at fault and doesn't have enough coverage or any at all. In order to compensate for this problem, a lot of companies will suggest that your Montana auto insurance come with at least the minimum uninsured/underinsured coverage.

This is a sensible precaution, because there is still a sizable minority of people who drive without auto insurance in Montana, and if you are unlucky enough to get caught up in a car accident with one of them, then it could otherwise prove to be a wallet busting experience.

What Happens if You Drive without Montana Auto Insurance?

So let's say you're out with your friends one night and get pulled over for speeding. If you don't have Montana auto insurance then your license will be suspended and you will be facing a misdemeanour charge. Yep, Montana hands out misdemeanours for not having coverage on your vehicle. If this is a first-time offense you will be charged a fine of $250 to $500 or spend 10 days in jail. It's definitely not a pretty picture on either side, so it's important to have coverage at all times.

Some people still don't get the message and end up being pulled over for something. If a second instance occurs and you don't have Montana auto insurance then you will face a fine of at least $350 or spend 10 days in jail. Most importantly; your license will be suspended automatically for 90 days!

Plus of course the likelihood that a second offence would result in the jail time rather than the fine are in practice much greater.

In addition to those punitive measures is the fact that even if you never get caught by law enforcement without insurance, then you are still likely to get caught out, because if you have an accident you will have no-one to turn to for help. All of the money will have to come directly out of your pocket, and if medical expenses are involved as well, then this could be a very substantial sum of money.

The Smart Approach

Hopefully by now you realize the seriousness when it comes to owning Montana auto insurance. Take the time to review the tips we've given you here today and implement them before you get your new policy. It will keep you protected and out of trouble, and what's more you will sleep easier at night knowing that you are properly protected.

A good first step is to get some quotes right now, and see where you stand in terms of potential costs for your auto insurance. It is a good idea to do this every couple of years anyway, simply to see if your current deal has remained competitive, or whether you could get a better deal by shopping around for a new auto insurance provider.


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