Teen Driver Insurance in Montana: Parent Guide
Montana requires 25/50/20 liability coverage and is an at-fault state.
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Montana at a Glance
25/50/20
Minimum liability limits, in thousands of dollars (per person / per accident / property)
At-fault
The at-fault driver's insurance pays for the damage they cause
Optional
PIP and uninsured motorist coverage are not required by law
14½
Minimum learner's permit age, 50 supervised driving hours
Source: state DMV, insurance department and statute records, verified July 2026
State Requirements
Teen drivers in Montana progress through a graduated licensing system that includes a learner's permit phase (minimum 6 months, ages 14½–15), an intermediate license with passenger and nighttime restrictions (ages 15–18), and full licensure at age 18 after completing six months restriction-free. Montana law (MCA 33-23-201) mandates that all insurers offer a good student discount to drivers under age 25 who maintain a 3.0 GPA or equivalent, making it one of the most accessible cost-reduction tools for parents adding a teen driver.
Bodily Injury Liability
Property Damage Liability
Uninsured/Underinsured Motorist Coverage
Collision Coverage
Comprehensive Coverage
Cost Overview
$238–$389/mo
Typical monthly rate in Montana, adding a driver aged 16–19 to a parent's policy
Rate data: Insurify and ValuePenguin, 2025
Add Your Teen Without Doubling Your Bill
Compare Teen Driver RatesRules for new drivers
Night driving
11pm-5am
Passengers
no more than 1 passenger younger than 18 first 6 months, then max 3
Source: IIHS and state DMV records, verified July 2026
Frequently Asked Questions
What are Montana's graduated licensing restrictions for teen drivers?
Montana teens must hold a learner's permit for at least six months starting at age 14½, then receive an intermediate license at 15 with restrictions: no more than one non-family passenger under 18, and no driving between midnight and 5 a.m. unless for work, school, or emergencies. Full licensure is available at age 18 after six months violation-free on the intermediate license.
When do teen driver insurance rates drop in Montana?
Rates decrease gradually: a meaningful drop occurs at age 18 when the teen receives full licensure and is no longer subject to intermediate restrictions, another at age 19–20 after two years of claims-free driving, and the largest reduction happens at age 25 when drivers exit the high-risk young driver category. Maintaining a clean record accelerates these decreases.
Coverage Types
Liability Insurance (Higher Limits)
Montana's 25/50/20 minimum leaves parents financially exposed if their teen causes a serious accident. Raising liability to 100/300/100 typically adds $30–$60/month and protects family assets from lawsuits exceeding state minimums.
Collision Coverage
Pays to repair your teen's vehicle after an at-fault crash. Required by lenders if the car is financed, but optional if paid off.
Comprehensive Coverage
Covers non-collision damage like deer strikes, hail, theft, and vandalism. Montana's high deer population and severe hailstorms make this relevant even for older vehicles.
Uninsured/Underinsured Motorist Coverage
Protects your teen if hit by a driver with no insurance or insufficient coverage. Montana does not require this but insurers must offer it.
Full Coverage (Comprehensive + Collision + Higher Liability)
Bundles collision, comprehensive, and higher liability limits. Required by lenders for financed vehicles and recommended for newer cars or teens driving in high-risk conditions.
Telematics/Usage-Based Insurance
Monitoring devices or smartphone apps track your teen's braking, speed, mileage, and nighttime driving. Safe driving data can reduce premiums by 10–30%.