The Skinny On Automobile Coverages In Montana

What is the minimum amount of auto insurance required in Montana?

Under MCA § 61-6-102, which is a part of Montana’s Motor Vehicle Insurance Responsibility And Verification Act (“Act”) a motor vehicle liability policy must insure the driver of a motor vehicle against damages caused by his negligence for no less than $25,000 where injuries in an accident are suffered by only one person, and for no less than $50,000 for injuries in an accident suffered by two or more people. These amounts of $25,000/$50,000 are the minimum limits that liability coverage may have in Montana.

What is “Under Insured Motorist” coverage and how does it work in Montana?

What happens if you are injured by another driver’s carelessness, but your damages are more than the minimum $25,000 liability limits of the other driver’s liability policy? That is where, if you have the coverage under your policy, your underinsured motorist (“UIM”) coverage applies to “fill the gap” between the amount of your damages and the other driver’s $25,000 liability coverage. UIM coverage is optional insurance coverage you receive from your own insurance company.

What is “Uninsured Motorist” coverage and how does it work in Montana?

What happens if you are injured by another driver’s carelessness, but the driver has no insurance? Even though the Act requires drivers in Montana to have at least $25,000 in per person liability coverage, not everyone follows the law. In that case if you had uninsured motorist (“UM”) coverage you could assert a claim for UM benefits under your own insurance policy. In Montana UM coverage must be offered to the insured driver (unless you are renewing your policy and have already rejected UM coverage), but the driver may choose to reject this coverage. MCA § 33-23-201.

In Montana UIM and UM coverages are portable and personal to the covered insured- they follow the individual rather than the vehicle.

 

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