Montana Auto Insurance

The state of Montana is a Tort state.  States with tort laws hold individuals responsible for accidents liable for the medical costs and damages caused by that accident. This will include lost wages, suffering, and vehicle repairs.  For this reason, insurance companies may encourage you to purchase more than the minimum auto liability insurance required by the state of Montana.  If your vehicle is financed, the bank may require you to carry collision and comprehensive coverage on the vehicle to protect their investment. 

Insurance companies in Montana do not have to cover members of your household but their reasons for refusing the coverage must be legal.  Even though you do not have to list everyone on the policy, the company may request it.  If you do not comply with the company’s request, they can deny the claims on any persons not included on the policy.  Any exclusions will be listed in the exclusion section of your policy along with any circumstances which will release the insurance company from responsibility for paying a claim.

In the state of Montana, the insurance company is allowed to check out your personal credit history when offering you insurance and setting your premium rates.  They will also look at your driving record, age, gender, marital status, and the area where you live when determining your premium rates.  Maintaining a good driving record and paying your bills on time may reduce your premiums.

The average insurance premium in Montana was about $661.00 as of 2006.  Montana was ranked as having the 37th highest premium average in the United States.  There are 16 state approved insurance companies doing business in the state of Montana.  The following companies may sell auto insurance in Montana as of 2008:  Allied Property & Casualty Insurance Company, Allstate Fire & Casualty Insurance Company, Depositors Insurance Company, Farmers Insurance Exchange, Liberty Mutual Fire Insurance Company, Mid-Century Insurance Company, Mountain West Farm Bureau, National Farmers Union Property & Casualty Company, Progressive Direct Insurance Company, Progressive Northwestern Insurance Company, Safeco Insurance Company, Sentinel Insurance Company, State Farm Fire & Casualty Insurance Company, State Farm Mutual Auto Insurance Company, United Services Auto Association, and USAA Casualty Insurance Company.

Things that can help you reduce the cost of your insurance premiums include a clean driving record, the type of vehicle you choose to drive as well as the number of miles you drive per year.  The fewer miles you put on your vehicle each year, the lower your chances are of being involved in an accident.  The reduction in accident risk can translate into a reduction in premiums.  Furthermore, a clean driving record reduces your risk of an accident. 

It will be more expensive to insure a luxury car or a sports car.  You should also keep in mind that insurance premiums will be higher on vehicles which are a high priority for thieves.  The cars that made the top 10 stolen vehicles in Montana are:

1. 1989 Chevrolet C/K 1500 Pickup (full size)
2. 1984 Ford F150
3. 1991 Honda Accord
4. 1996 Honda Civic
5. 1986 Toyota Pickup
6. 1999 Pontiac Grand Am
7. 1976 Ford Heavy Duty
8. 1993 Ford Explorer
9. 1995 Ford Escort
10. 1993 ford Ranger

Safety devices such as anti-lock brakes side air bags, automatic seat belts and daytime running lights may also reduce your premiums along with anti theft devices like an alarm system and global positioning systems.  Where you live will affect your insurance rates which can be affected by weather extremes, high theft risk, and high traffic patterns.  Don’t forget to maintain a good credit record as the insurance company looks at this to determine how likely you are to pay your premiums on time.  Prior accident claims will also be a red flag to insurance companies especially if there are several claims on your past record.  The amount of your deductible is also a key factor when determining insurance rates.  The higher your deductible is, the lower your insurance rates will be.