Is Uninsured Motorist Coverage Required in Montana?
All vehicle insurance is not the same. There are certain nuances to each policy. When you are driving on the roads of Montana, you will want to make sure that you have adequate insurance in case of an accident or other incident.
At Western Justice Associates, we understand that the other driver’s insurance may play a role in whether you can collect on your claim. What happens if you are involved in an accident with an uninsured driver? Your insurance may help to cover the losses, but is uninsured motorist coverage required in Montana? Let’s help answer these questions and provide tips to stay protected under your insurance policy.
Insurance Laws in Montana
According to a study by the Insurance Research Council, 14% percent of motorists, or one in seven drivers, were uninsured. All states in the United States require insurance to operate vehicles on the road. Despite those requirements, some drivers ignore these rules.
Montana state law stipulates that drivers must have liability insurance. This type of policy will pay for damages and injuries suffered by others in an accident if you cause the accident.
Unfortunately, not all drivers will carry an insurance policy, and when they are involved in a car accident in Bozeman, it can be difficult to collect damages from them. In some cases, you may have to file a personal injury lawsuit. However, a judgment in your favor doesn’t always mean that you collect from an uninsured driver, especially if they do not have any substantial assets.
In these situations, you will want coverage that helps if you’re in an accident with an uninsured driver. Uninsured motorist coverage (UM) covers damages when you or your passengers are injured in a crash with these drivers. While these policies act as a safeguard against uninsured motorists, are they required in Montana?
No, it is not mandatory but recommended. While the state has no uninsured motorist coverage mandate, insurance companies must provide this option to policyholders.
You have the option to decline any additional uninsured motorist coverage, but it needs to be in writing. While these policies are not mandatory, it is highly recommended that you consider adding this to your policy for fall protection on the roads.
Coverage Requirements
While uninsured motorist coverage is not required, if you do choose to select it, there are a few requirements. For example, there are policy minimums. Your uninsured motorist bodily injury coverage must be the same amount or exceed the coverage of your liability insurance. Your policy will need to have at least $25,000 per person and up to $50,000 per accident. This policy can help you pay for medical expenses, lost wages, and other damages if an uninsured or underinsured driver injures you.
Along with that, you may want to select property damage coverage as well. If an accident with an uninsured driver results in damage to your vehicle, then these policies will cover the repair or replacement costs up to the amounts specified in your policy.
What Is Underinsured Motorist Coverage?
While uninsured motorist coverage pays for medical bills and other damages if you’re injured in an accident caused by a driver without insurance, underinsured motorist coverage can cover your medical bills and other losses when the at-fault driver doesn’t have enough insurance coverage to fully compensate you.
In some cases, you may be involved in an accident with a driver who has insurance, but it is just not enough to cover your losses. With that, uninsured motorist coverage (UMI) can step in. This underinsured motorist coverage can help bridge the gap between their policy limits and your actual losses. Like uninsured motorist coverage, underinsured motorist coverage is also optional in Montana.
With both types of coverage, you can have additional financial protection in case of accidents with under- or uninsured drivers.
Do You Need Uninsured Coverage?
It is always recommended that you add this coverage to your policy. If you are still unsure, think about the risks you will face on the road. Do you believe that you will encounter uninsured or underinsured drivers? Uninsured drivers can be found in every part of the state, so keep that in mind when making a decision.
If you don’t have this type of insurance, consider your ability to cover medical expenses and property damage out of pocket. In the event of an accident, you may want to know that your losses, injuries, and damages are all covered by your own policy.
With both UI and UMI, you are protected even if the other driver lacks insurance, providing you with some peace of mind. Car accidents are stressful enough without worrying about the other party’s coverage.
While Montana does not mandate uninsured motorist coverage, consider seriously adding it to your policies. Protecting yourself and your passengers against the unexpected is wise, even if the law doesn’t require it.
