Cheap Montana Low-Income Car Insurance for Families and Individuals

Montana does not have a government program to assist low-income drivers seeking car insurance. MoneyGeek’s research indicates that State Farm is the cheapest provider of low-income car insurance in Montana for individuals and families.

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Last Updated: 11/25/2022
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Your income does not determine how much you pay for car insurance. MoneyGeek’s analysis indicates that the top factors influencing car insurance rates in Montana include your age and adding a teen driver to your policy. This guide sets out the most affordable providers for low-income families and individuals with good and poor credit ratings.

Is There Car Insurance for Low-Income Families and Individuals in Montana?

Montana does not have an assistance program to help low-income families and individuals with the cost of car insurance. While car insurance is compulsory in the state, about 8.5% of drivers there are uninsured, and one of the reasons may be the high cost of insurance.

Low-income individuals and families seeking to purchase cheap car insurance in Montana can opt for a state minimum policy. Additionally, pay-per-mile insurance may also be a good option for individuals who do not drive often.

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Does Montana Have a Government Program to Support Low-Income Drivers with Insurance?

The Montana government does not offer an assistance program for low-income individuals and families seeking car insurance. To get the cheapest insurance for your needs, you should compare quotes from multiple insurers. MoneyGeek ranked the companies that provide cheap car insurance for low-income families in Montana to help you save on your premiums.

The Cheapest Montana Car Insurance Companies for Low-Income Drivers

While there are various factors that car insurance providers consider when determining your premiums, income is not one of them. However, your age, credit score and coverage level will significantly impact your rates. The cheapest car insurance in Montana for low-income drivers is a policy with minimum coverage.

MoneyGeek ranked the cheapest minimum car insurance providers for low-income individuals and families in Montana across different profiles. Our findings show that State Farm is the cheapest provider for low-income drivers in the state.

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The Cheapest Montana Car Insurance Companies for Low-Income Families

Although income does not affect your car insurance rates, your credit score does. For MoneyGeek’s sample single parent with a teen driver, rates in the state increase by $1,083 per year if you have a poor credit score. Couples with a child and a poor credit score will pay approximately $1,568 more per year than those with good credit.

Based on MoneyGeek’s analysis, the cheapest car insurance for a couple with a teen driver and poor credit is offered by:

  • State Farm: $2,656 per year
  • GEICO: $3,259 per year

USAA is the cheapest option for military families, at $1,299 per year.

For single parents with poor credit scores, MoneyGeek discovered that the cheapest providers in Montana would be:

  • State Farm: $965 per year
  • GEICO: $1,143 per year

USAA provides the cheapest car insurance coverage at approximately $516 per year; however, this insurer is exclusive to drivers who are members of the military.

Having a low income does not imply that you have a poor credit score. You can use the table below to compare prices between poor and good credit scores for your profile.

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  • Company
    Annual Rates
  • USAA
    $516
  • State Farm
    $965
  • GEICO
    $1,143
  • Progressive
    $1,524
  • Allstate
    $1,548
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The Cheapest Montana Car Insurance Companies for Low-Income Individuals

The difference between car insurance rates for individuals with a good credit score and those with a poor credit score in Montana is around $391 per year.

MoneyGeek discovered that the cheapest car insurance providers in Montana for individuals with poor credit scores are:

  • State Farm: $606 per year
  • GEICO: $718 per year

If you are a current or retired member of the military, you may opt for a policy from USAA, which is the cheapest in the state at $324 per year.

Having a low income does not imply that you have a poor credit score, but your credit score does have a significant impact on the cost of your car insurance. If you have a good credit score, you will pay about $349 per year for car insurance through State Farm and $413 with GEICO.

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  • Company
    Annual Rates
  • USAA
    $187
  • State Farm
    $349
  • GEICO
    $413
  • Progressive
    $551
  • Allstate
    $560

The Cheapest Montana Car Insurance Companies for Low-Income Students

Young student drivers in Montana pay higher premiums for car insurance because of their inexperience on the road. The high insurance costs do not result from the young drivers’ low income, even though most students are low-income.

In addition to driving inexperience, your credit score will affect how much you pay for insurance. A student with poor credit will pay approximately $918 more per year than a student with good credit.

According to MoneyGeek’s findings, the cheapest car insurance for low-income students with poor credit in Montana is offered by:

  • State Farm: $1,422 per year
  • GEICO: $1,685 per year

Student drivers with a military background can also get cheap coverage from USAA. Policies from the company cost an average of $761 per year.

Low income doesn’t imply that you have a poor credit rating. If you’re a low-income student in Montana and have a good credit score, you will pay on average $818 at State Farm and $970 at GEICO.

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  • Company
    Annual Rates
  • USAA
    $438
  • State Farm
    $818
  • GEICO
    $970
  • Progressive
    $1,293
  • Allstate
    $1,313

The Cheapest Montana Car Insurance Companies for Low-Income Seniors

**MoneyGeek found that senior drivers pay higher premiums than middle-aged drivers for car insurance, and those rates change significantly based on credit score. Our sample 70-year-old driver in Montana with poor credit will pay an average of $421 per year more than their counterpart with a good score.

The two cheapest providers of car insurance for low-income seniors in Montana are:

  • State Farm: $589 per year
  • GEICO: $747 per year

USAA is the cheapest provider in the state at $408 per year, but its policies are only available to members of the military and their families.

Low-income seniors do not necessarily have poor credit, which makes a difference in how much you’ll pay for car insurance. The cheapest amount seniors with a good credit rating will pay is $339 per year at State Farm and $430 at GEICO.

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Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $235
  • State Farm
    $339
  • GEICO
    $430
  • Progressive
    $591
  • Allstate
    $609

Does Income Affect Car Insurance Rates in Montana?

In Montana, insurers do not use income as a factor when determining car insurance rates. However, other factors related to your income may impact your premiums. For instance, younger student drivers pay higher rates because they are likely to get involved in an accident, not because they are low-income. Low-income drivers also file more claims than those in higher-income brackets because they can’t pay for out-of-pocket repairs. However, insurers only charge higher rates because of the claims history, not the lower income.

MoneyGeek determined the factors that most influence car insurance costs in Montana, which include:

  • Adding a teen driver.
  • Coverage level.
  • Age of the driver.

Other significant factors used when determining car insurance rates in Montana include your credit score and car model.

  • Factor
    How it Affects Your Rates
  • Adding a Teen Driver

    Adding a teen driver is the most impactful factor on the cost of car insurance in Montana, making rates 3.1x as expensive.

  • Coverage Level

    The coverage level you select also influences how much you pay for car insurance in Montana, increasing your premium by as much as 2.7x.

  • Age of the Driver

    The age of a driver is an important factor too. In Montana, rates can vary by 2.3x for young drivers versus middle-aged drivers.

  • Credit Score

    If you have a poor credit score, you will pay 2.2x more than a driver with a good rating.

  • Car Model

    The model of your car can cause your rates to be twice as expensive.

Frequently Asked Questions About Low-Income Car Insurance in Montana

MoneyGeek responds below to the commonly asked questions about low-income car insurance in Montana to help you make informed purchase decisions.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Montana using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple each 40 years old or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Montana.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.