Cheapest Car Insurance for Low-Income Drivers in Montana (October 2024)

The cheapest car insurance for low-income individual drivers with poor credit in Montana is provided by State Farm at $30 per month. For low-income families, the most affordable option is also State Farm at $37 per month.

Montana does not offer state-backed car insurance programs for low-income families and individuals. Therefore, finding the provider with the most affordable rate is one of their options to manage costs. There are also ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, it has its downsides. For example, in an at-fault accident, minimum coverage may not cover all expenses, leaving you with significant out-of-pocket costs.

Car insurance companies in Montana do not consider your income when calculating rates. They look at factors like your age, driving record, credit history, and the type of car you drive. At-fault accidents and moving violations can increase your rates significantly. To find the cheapest rates, it's best to compare quotes from several insurance companies.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. For drivers who rarely drive, pay-per-mile insurance is a great option to save money. MoneyGeek rounded up the cheapest insurers for low-income drivers in Montana to help you save.

To legally operate a vehicle in Montana, you're required to have minimum car insurance requirements that include the following liability coverage amounts:

• $25,000 for bodily injury liability per person.
• $50,000 for bodily injury liability per accident.
• $20,000 for property damage liability per accident.

Choosing a liability-only car insurance policy can help cover expenses you cause to others in an accident, but it won't cover your own vehicle. To protect your vehicle against various damages, consider a full coverage car insurance policy, which includes collision and comprehensive coverages.

In Montana's unpredictable weather, a full coverage policy is ideal if you're driving a newer car or one with high value. It's designed to safeguard against non-collision events like hail damage or theft, which are not uncommon. Understanding the risks and benefits of each coverage type is crucial to selecting the right policy for your needs.

Your credit record can affect your car insurance rates in Montana. A lower credit-based insurance score may signal to insurers that you're a higher risk, which can lead to more expensive premiums.

Montana drivers with poor credit records can find affordable rates with:

• State Farm: $354 per year; $30 per month
• Farmers: $568 per year; $47 per month

The cheapest car insurance in Montana for low-income drivers with a good credit history are:

• State Farm: $164 per year; $14 per month
• GEICO: $371 per year; $31 per month

Driving without insurance in Montana is considered a misdemeanor and can lead to suspension of your driver's license and vehicle registration, fines ranging from $175 to $1,000 and other penalties. Make sure you're covered to drive legally and safely.

Car insurance premiums are not directly influenced by income, yet family circumstances do play a role in determining costs. In Montana, a single parent with a teen faces an annual premium that's $276 higher than a married couple with a teen, who can secure rates cheaper by $276 per year.

The most affordable car insurance companies for a married couple with a teen in Montana are:

• State Farm: $440 per year; $37 per month
• Progressive: $526 per year; $44 per month

For a single parent with a teen, the cheapest options are:

• State Farm: $716 per year; $60 per month
• Progressive: $938 per year; $78 per month

Married couples with a teen can often find lower car insurance rates than single parents with a teen due to different risk assessments by insurers. Keeping a strong credit score is also key for anyone looking to get more affordable minimum coverage auto insurance rates.

Car insurance premiums generally decrease as you reach the early senior years, typically around age 55 to 65, especially if you have a clean driving record.

The two cheapest car insurance for senior drivers with low-income and poor credit history are:

• State Farm: $328 per year; $27 per month
• Farmers: $509 per year; $42 per month

After the age of 70, car insurance rates typically increase, as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. Montana may have specific laws or guidelines for seniors getting car insurance.

Car insurance rates in Montana are influenced by various factors. While your income doesn't directly affect rates, it can impact your credit score. A poor credit record can lead to higher rates, whereas a good credit score can result in lower rates.

Understanding the factors that contribute to car insurance rates in Montana can help you make informed decisions in choosing the best car insurance for you.

You don't need a state-sponsored program to cut costs — finding affordable car insurance in Montana is possible with the right strategies. Here are some tips to lower your premiums:

Finding affordable car insurance for low-income drivers in Montana can be tough. Get answers to common questions about low-income car insurance options in Montana.