The only requirement that the State of Montana establishes on drivers is to own Liability Insurance on their vehicles at all times. It is mandatory for vehicle owners to have Liability Insurance coverage; however Comprehensive and Collision are good options for any one driving on the streets of Montana.

Minimum coverage required for liability auto insurance policy consists of $25,000 per person for bodily injury, this will take care of yourself in case you are involved in an accident, $50,000 per accident for bodily injury; this will respond to expenses generated by other occupants in your vehicle and $10,000 for property damage, mainly to take care of reparations that your vehicle must need after the accident.

Law enforcement officers and authorities may request you demonstrate owning financial responsibility of any kind, the most common way to comply with this request is to show your insurance ID card, this card is emitted by the insurance company at the moment you acquire an insurance policy with them. Other ways may include providing proof of bond with an authorization certificate, confirmation letter from the State Treasurer if you made a cash deposit and/or if you are self-insured.

If you fail to comply with this requirement the following penalties can be applied; if you are a first timer, you may receive a fine of as much as $500 and 5 points in your driver license, this may also include some jail time.

If it's the second time you don't comply with it your license will be suspended for 90 days, jail time will be applied and a fine no less than three hundred and fifty dollars ($350) will be charged.

In addition to the mandatory coverage required by the state of Montana, there are other common coverages available to increase your areas of coverage and help protect you and your passengers.

Among the most common additional coverage types available, there is Uninsured / Underinsured Motorist, Comprehensive and Collision coverage.

Uninsured/underinsured motorist covers the insured against drivers that don't have enough liability coverage or completely lack of it. Uninsured coverage can also be used to pay on hit and run accidents. Underinsured is used when the driver held responsible owns a liability insurance policy, but for not enough amounts to pay for injuries or damage caused to you or your passengers. The insured gets benefited from this coverage because the insurance company will pay quickly your bills and you won't have to wait for it to pursuit reimbursement from the responsible driver in order to get paid.

Comprehensive coverage will come in handy when you are involved in an accident that was not generated by a collision, for example if you hit an animal on the road or flying debris collide your vehicle. Comprehensive coverage is also useful if you live in an area that usually has extreme weather events, such as floods, tornados, hurricanes, etc, that can cause damage to your vehicle.

Collision coverage, as its name implies, will take care of collision, but unlike other coverage, this will not pay for medical expenses, only for those costs that may result of getting your vehicle working again.