If you're driving in Montana, you need auto insurance. It's not just a good idea—it's the law. But here's what trips people up: Montana's minimum requirements might sound simple on paper (25/50/20, in case you've seen those numbers floating around), but they don't tell the whole story. Between Big Sky Country's wildlife collision risks and the reality that one in nine Montana drivers is uninsured, knowing what coverage you actually need goes way beyond just checking a legal box.
Let's break down what Montana requires, what it doesn't, and what you should seriously consider adding to your policy—especially if you've ever had a close call with a deer on Highway 93.
Montana's Minimum Auto Insurance Requirements Explained
Montana law requires every driver to carry liability insurance with minimum limits of 25/50/20. Here's what those numbers actually mean in plain English:
$25,000 per person for bodily injury: If you cause an accident that injures someone, your insurance will pay up to $25,000 for that person's medical bills, lost wages, and other injury-related costs. If their expenses exceed that, you're on the hook for the difference.
$50,000 per accident for bodily injury: This is the total your insurance will pay for all injuries you cause in a single accident. So if you injure three people and each has $25,000 in medical bills, your policy only covers $50,000 total—leaving you responsible for the remaining $25,000.
$20,000 for property damage: This covers damage you cause to other people's property in an accident—usually their vehicle, but it could also include fences, mailboxes, or buildings. Today's vehicles are expensive, and $20,000 doesn't go as far as you'd think.
These minimums haven't changed for 2025, so if you already have coverage, you don't need to update anything. But just because these limits meet Montana's legal requirements doesn't mean they're enough to protect your financial future.
Why Minimum Coverage Often Isn't Enough
Here's the uncomfortable truth: minimum coverage runs out fast after a serious crash. A single trip to the emergency room can easily cost $15,000 to $25,000, and if the accident involves surgery, physical therapy, or long-term treatment, you're looking at bills that blow right through that $25,000 per-person limit. And newer vehicles? The average new car costs over $40,000 now, meaning your $20,000 property damage coverage might not even cover totaling one car, let alone multiple vehicles.
If you cause an accident and the costs exceed your coverage limits, the other party can sue you personally for the difference. That means your savings, your home, even your wages could be at risk. For most people, bumping up to higher liability limits—like 100/300/100—costs only a little more per month but provides significantly better protection.
Montana's Wildlife Collision Risk: Why You Need Comprehensive Coverage
This is where Montana gets uniquely expensive. Montana ranks second in the nation for wildlife-vehicle collisions, with drivers facing 1 in 53 odds of hitting an animal—usually a deer or elk. And these aren't minor fender-benders. The average repair cost after hitting a deer is $8,000. Hit an elk? You're looking at $18,000 on average.
Here's the kicker: Montana's minimum required coverage doesn't include comprehensive insurance, which is what actually covers wildlife collisions. Comprehensive (sometimes called "other than collision" coverage) is optional. Without it, if you hit a deer on your way home from work, you're paying for every dollar of damage out of pocket.
The good news? Most insurers don't consider wildlife collisions at-fault accidents, so filing a comprehensive claim won't drive up your rates. And if you or your passengers are injured, personal injury protection (PIP) coverage can help with medical bills. For Montana drivers, especially those in rural areas or who commute during dawn and dusk when wildlife is most active, comprehensive coverage isn't optional—it's essential.
Uninsured and Underinsured Motorist Coverage: Optional but Important
Insurance companies in Montana are required to offer uninsured and underinsured motorist coverage, but you're allowed to decline it. Should you? Probably not. While exact statistics vary, a significant portion of Montana drivers are uninsured or underinsured. If one of them hits you and you don't have UM/UIM coverage, you're stuck paying for your own medical bills and vehicle repairs—even though you weren't at fault.
Uninsured motorist coverage steps in when the at-fault driver has no insurance. Underinsured motorist coverage kicks in when they have insurance, but not enough to cover your costs. Think of it as insurance for your insurance—it fills the gap when someone else's policy falls short. Given how affordable UM/UIM coverage typically is, declining it to save a few bucks a month rarely makes financial sense.
What Happens If You Drive Without Insurance in Montana
Montana doesn't mess around when it comes to uninsured drivers. If you're caught driving without the required liability coverage, you're facing a misdemeanor charge. For a first offense, penalties range from $250 to $500 in fines and up to 10 days in jail. A second offense within five years bumps the fine to at least $350, includes a 90-day license suspension, and you'll need to file an SR-22 certificate for three years.
An SR-22 isn't insurance itself—it's a certificate your insurer files with the state proving you have coverage. It's also expensive, since insurers charge significantly higher rates for drivers who need one. Bottom line: the cost of maintaining minimum coverage is far less than the financial and legal consequences of going without.
How Much Does Auto Insurance Cost in Montana?
The average Montana driver pays about $1,615 per year for minimum coverage, which works out to roughly $135 per month. That's about 13% higher than the national average. If you opt for full coverage (which includes comprehensive and collision), the average jumps to around $2,400 per year, or $200 per month.
Your personal rate depends on several factors. Young drivers pay significantly more—a 16-year-old in Montana might pay over $7,000 annually, while drivers in their 50s pay closer to $1,450. Your credit score matters too; drivers with excellent credit can save nearly $2,000 per year compared to those with poor credit. And if you have a DUI on your record, expect to pay about 60% more than average.
The good news? Shopping around makes a huge difference. Different insurers weigh these factors differently, so getting quotes from multiple companies can help you find significantly better rates for the same coverage.
How to Get the Right Coverage for Your Situation
Start by getting quotes for coverage beyond Montana's minimums. Ask insurers to price out 100/300/100 liability limits and include comprehensive and collision coverage, especially if you live in rural areas or drive frequently during dawn or dusk hours. Add uninsured motorist coverage that matches your liability limits—if you're carrying $100,000 in bodily injury coverage, you want the same in UM protection.
If you own your car outright and it's older with lower value, you might skip collision coverage to save money—but keep comprehensive. That deer doesn't care how old your Subaru is. On the flip side, if you're financing or leasing, your lender will require both comprehensive and collision anyway.
Finally, review your coverage annually. Your circumstances change—your car ages, you pay off loans, your driving record improves—and your insurance should change with them. Montana's insurance landscape is competitive, and loyalty to one company rarely pays off. Get fresh quotes every year or two, and don't be afraid to switch if you find better coverage at a lower price.
