Montana Auto Insurance and Financial Responsibility

Under Montana auto insurance financial responsibility legislation, drivers in the state must be able to show that they can take financial responsibility for the damages they cause in an accident. Drivers can comply with the law by doing one of the following:

  • Buying a bond from a surety company that is licensed to operate in the state
  • Paying a cash deposit to the state treasurer
  • Purchasing a liability insurance policy from an authorized carrier
  • Customers who have a minimum of 25 cars to insure under their name can get a self-insurance certificate to comply with the law

Most people in the state buy an insurance policy to comply with Montana auto insurance financial responsibility requirements. A person who does not comply with the law will be required to pay a fine of up to $500. He or she may also be sentenced to up to 10 days in jail. Along with these penalties, the points will be added to the driver’s license.

A second-time offender will pay a fine of at least $350 and/or may be sentenced to up to 10 days in jail. The driver will also have his or her license suspended for 90 days.

Rather than face these consequences for not having the proper level of car insurance coverage in place, a much better choice is to find an affordable policy by shopping around for coverage. Spending some time gathering quotes from several companies can mean significant savings.