Montana Auto Insurance
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Montana Auto Insurance Requirements
It surprises some drivers to learn that auto insurance is not mandated by the federal government. Rather, each state creates its own laws regarding this type of insurance. That’s why it’s important for Montana motorists to spend time researching this state’s laws.
Montana State Law Requirements
It is required by Montana state law to purchase liability insurance. This type of insurance takes effect when the owner/operator is deemed at-fault in an accident. State minimum liability requirements are 25/50/10 and are broken down as follows:
- The insurer will pay $25,000 towards the bodily injury expenses when the other vehicle has a single occupant.
- The insurer will pay $50,000 towards the combined bodily injury expenses when the other vehicle has multiple occupants.
- The insurer will pay $10,000 towards the cost to repair property damaged as a result of the accident including the other driver’s car, building signs, etc.
Getting just the minimum Montana coverage, not the best idea
Although it’s tempting to save money on auto insurance by opting for the minimum Montana requirements, this isn’t always a wise idea. The costs of medical care and vehicle repair are continually rising and the expenses incurred from a single accident can easily exceed these minimums. When that happens, the at-fault driver is legally responsible for covering the balance of the bills. So for added protection, consider purchasing more than the minimum.
Comprehensive covers your vehicle better
It’s also wise to consider purchasing comprehensive/collision coverage even though Montana does not require this. Comprehensive covers your vehicle from everything except a collision with another vehicle including weather, theft, animal encounters and more. There are exceptions and it’s up to you to know what they are. Collision covers the insured regardless of fault. The insurer can choose to cover the repair costs or it can declare the car “totaled” and pay the insured an amount equal to the current market value of the vehicle rather than repair it.
Liability coverage
Finally, consider purchasing uninsured motorist and underinsured motorist insurance. Even though most states require drivers to possess liability coverage, not everyone does. This type of coverage protects you when you’re involved in a hit-and-run accident, or an accident involving an uninsured motorist and also when the at-fault motorist has insufficient insurance to cover your vehicle’s repair costs.
Montana State Auditor’s office
Looking to do more Montana insurance research, it’s easy to do by visiting the Montana State Auditor’s office in Helena, or phoning (406) 444-2040, or visiting the Auditor’s website at www.sao.mt.gov.