The best, cheapest car insurance in Montana

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Best car insurance company in Montana

Drivers in Montana pay an average of $2,193 a year, or $183 per month, which is the 8^th highest in the country, according to our research.

Actual car insurance rates vary by company, and State Farm, GEICO, and others continue to offer some of the most competitive premiums in Montana.

When it comes to the best cheap car insurance in Montana, State Farm is our No. 1 choice followed by GEICO and Progressive.

State Farm scores well with third-party rating organizations and it has an average premium in Montana of $1,858 a year, or $155 a month, which is roughly $335 less than the Montana average.

The best car insurance companies in Montana

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state/regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in Montana

Nationwide is the cheapest option for car insurance in Montana.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age and marital status as well the vehicle. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The numbers highlight these differences. Allstate is the most expensive insurer in Montana with an average premium of $2,949 a year.

On the other hand, as mentioned above, the average premium for Nationwide policyholders in Montana is $1,394 a year. State Farm had the second cheapest coverage in Montana at $1,858 and GEICO rounded out the top three cheapest at $2,382.

Below is a list of the cheapest full-coverage car insurance rates in Montana for a 40-year-old driver of a 2023 Honda Accord LX.

Cheapest full-coverage insurance in Montana

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

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Full coverage car insurance in Montana

As noted, the rates above are for full coverage car insurance. Full coverage car insurance adds collision and comprehensive to your liability insurance coverage, so your vehicle is repaired or replaced after an incident.

Full coverage insurance includes collision and comprehensive which will pay to repair your vehicle. Collision covers damage caused by a collision with another vehicle or object while comprehensive repairs damage done by perils such as fire, theft, flooding, vandalism, and more.

Learn more about liability, collision and comprehensive coverage.

Shopping for car insurance in Montana

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age/income and profession, I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in Montana by age

Statistics show that young drivers, because they are inexperienced and tend to take more risks, have more accidents and claims, all of which lead to higher premiums for younger drivers.

“Data indicates that teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

Nationwide is the cheapest insurer in Montana for teens.

Age factors into a premium as the data clearly shows. Teens pay the highest rates by far with the lowest premium coming in at $4,069 which is 220% more expensive than the most affordable coverage for seniors at $1,270 and 78% more than young drivers’ best rate of $2,289.

Rates start to drop, assuming their driving record stays clean as teens move into their young adult years and tend to stay stable until a driver gets into their 70s when rates will go up a bit.

Cheapest car insurance for senior drivers in Montana

Seniors in the state pay more for coverage than all other driver groups, except for teens. Nationwide is the most affordable option for seniors with a yearly premium of $1,270 or $106 a month. State Farm was the second cheapest at $1,739 and Kemper Insurance rounded out the top three at $2,311.

Seniors tend to pay more for coverage due to age. Many seniors suffer from vision and hearing issues as well as slowing reflexes. In addition, medications they may take can impact their driving. All of these factors combined lead to more accidents and claims which will result in a higher premium.

The chart below shows the average premium for senior drivers.

Average rates for seniors in Montana

Car insurance for young drivers in Montana

While rates start to drop for teen drivers as they become young adults, they still pay slightly higher rates than more experienced drivers. According to our data, Nationwide is the cheapest insurer for drivers in their early 20s with an average premium of $2,289 a year or $191 per month.

State Farm was the second cheapest insurer at $2,881 and Farmers will insure a young driver in Montana for $3,646 a year.

Rates will continue to drop (assuming a clean driving record) as drivers hit their late 20s and move into their 30s.

The chart below shows the average premiums for young drivers.

Average rates for young drivers in Montana

Car insurance for teen drivers in Montana

Adding a teen to a car insurance policy will always push up the rate. Teens are the least experienced drivers out on the road which leads to more accidents and claims and higher premiums.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

For Montana teens, Nationwide is the most affordable option with a premium of $4,069 a year or $339 a month. State Farm is the next most affordable at $4,786 a year or $399 a month followed by GEICO running $7,276 a year.

If your teen has a B average or better, ask for a good student discount to help save a bit of money. Having your teen drive an older vehicle will also help save some money. If the car is old enough that you wouldn’t repair it after an accident, you may be able to drop collision and comprehensive.

The chart below shows average premiums for teens in Montana:

Average rates for teens in Montana

Average cost of car insurance in Montana

The average cost of car insurance in Montana is $2,193, which makes it the 8^th most expensive state in the country behind Louisiana and Florida.

Metropolitan areas – and all states have them – equals lots of drivers, which often leads to car crashes and claims.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like Montana,” says Gao.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Average rates for a 40-year-old in Montana

Which Montana ZIP codes are most expensive for car insurance?

Where your vehicle spends its days and nights will impact your rate. Frequent severe weather or a high crime rate will raise the cost of insurance for everyone in the area.

Our data shows that Lodge Grass is the most expensive area for coverage with an average premium of $2,471 a year.

Here are the most expensive ZIP codes in Montana for car insurance:

Most expensive ZIP codes in Montana

Which Montana ZIP codes are the cheapest for car insurance?

When it comes to cheap car insurance in Montana, these ZIP codes have the most affordable coverage. The area around Missoula has the lowest premiums in Montana with an average premium of $1,908.

Least expensive ZIP codes in Montana

Cheapest car insurance for high-risk drivers in Montana

If you have an at-fault accident, DUI or speeding ticket on your driving record, your insurer may consider you a high-risk driver and will push up the cost of your coverage.

A speeding ticket increases the average premium to $2,134 and will stay on your record and impact your premium for three years.

If you are responsible for an accident, your rates will push the average cost of coverage to $2,739.

A DUI is considered a major violation and will raise the average premium to $3,577.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in Montana after a traffic incident

Minimum car insurance requirements in Montana

Most states require drivers to carry a minimum amount of liability car insurance, and Montana is no exception. Drivers are required to carry 25/50/20 in liability coverage, which translates into:

• $25k for injury/death per person
• $50k for injury/death per accident
• $20k for damage to property

But state-required minimums are rarely enough coverage in a serious accident. If you cause an accident and the damages exceed your coverage levels, you will need to cover the damages out of pocket.

The most common required coverages are $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident and $25,000 property damage.

Experts typically recommend carrying 100/300/100 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like Montana.”

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.

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