Montana has a well-deserved reputation for sky-high auto insurance rates. With an average annual insurance rate of $1894, Montana is the fourth most expensive state to buy auto insurance. As of December 2013, the only states where auto insurance is more expensive than in Montana are: Louisiana, Michigan, Georgia, and Oklahoma.
Auto insurance is mandatory in Montana. Inability to furnish proof of financial responsibility results in heavy penalties. Auto insurance rates depend on several factors such as your age, gender and most importantly your previous driving record.
In Montana, if your car is involved was involved in an accident in the past three years, your auto insurance premium can increase up to $2,333. Two accidents on your driving record will further increase your premium up to $3,480.
Let us consider the insurance rates in the city of Helena. The average insurance premiums in this city are lower than most other cities in Montana. The average annual insurance rate in Helena is $1608.
Let us see how your driving record could drive up your average insurance rates. After one accident you would have to pay $1980 as insurance premium. Two accidents will increase the average insurance premium to $2954, which is $1000 more than what you pay as average auto insurance premium in almost all the cities of Montana. And if you happen to get charged and convicted of a DUI, you have to pay an annual average insurance rate of $2991, which is around $1500 more than the average insurance premium in this city.
Taking a defensive driving course could bring your insurance premium down. But you would still have to pay an average annual premium of $ 2542. In a state where the insurance rates range between $1600 and $1900, any escalation in the rates could result in significant financial damages.