Who Pays Car Accident Compensation in Montana?

Like most states, Montana is a “fault” or “tort” state for car accidents. That means the driver responsible for the accident is responsible for paying the damages (financial compensation) for injuries and property damage caused in the accident.

In situations where more than one driver is at fault, Montana uses a modified comparative negligence system. This means each driver is responsible for paying damages in proportion to their percentage of fault, and you can only pursue compensation from another driver if your percentage of fault is less than the other driver’s percentage of fault. This is known as the 51% bar rule.

For example, if you are 30% at fault and the other driver is 70% at fault, then you can still pursue compensation, but your compensation will be reduced by 30 percent. The other driver can’t pursue compensation from you at all because he’s more than 51% at fault.

Under Montana law, the only required type of car insurance coverage is liability insurance, which pays for injuries, deaths, and property damage sustained by others in an accident you cause. The legal minimum is $25,000 for bodily injury per person, $50,000 total for bodily injury per accident, and $20,000 for property damage. This is commonly known as 25/50/20 coverage. You have the option to purchase more. Montana law also requires the insurance company to offer uninsured/underinsured motorist protection (UM/UIM) in the amount of $25,000 per person and $50,000 per accident. UM/UIM stands in for the other driver’s liability insurance if you are hit by someone who doesn’t have insurance or doesn’t have enough to pay for the full cost of the accident. It generally also applies if you are injured by a hit-and-run driver or “phantom vehicle” that is never found. Again, the insurance company has to offer this coverage, and if you don’t want it, you must decline it in writing.

Montana car insurance policies may also include these types of optional coverage:

• Collision and comprehensive insurance: These types of insurance pay for damage to the insured vehicle on a no-fault basis. Collision pays for damage sustained in a crash, while comprehensive pays for other causes like vandalism, fire, and natural disasters. Note that while you are not legally required to have these coverages, they are usually required by lienholders if your vehicle is financed.
• Rental reimbursement coverage: This insurance pays for a replacement rental vehicle if your car cannot be driven due to an accident or other damage.
• Medical expense benefits: Also known as medical payments or MedPay, this coverage pays for medical and funeral expenses of people injured or killed while riding in your car on a no-fault basis. It may also cover you and members of your family if you are hit as a pedestrian or passenger in someone else’s car.

If there isn’t enough insurance available to pay for a car accident, then in principle, you can pursue compensation from the at-fault driver’s assets. However, this is usually impractical. As such, the amount of available insurance is a critical factor in compensation for most car accidents.

Because Montana is a “tort” state, yes, you generally have the option of filing a lawsuit. There are three options to pursue compensation for a car accident in Montana:

• File a “first-party” claim with your own insurance company, if you have first-party benefits (such as medical expense benefits or collision coverage) on your policy. Your insurance company may then pursue compensation from the at-fault driver’s insurance company (this is called insurance subrogation).
• File a “third-party” claim with the at-fault driver’s insurance company.
• File a car accident lawsuit against the at-fault driver, in which their interests will be represented by their insurance company.

In Montana, the statute of limitations (legal time limit to file a lawsuit) is generally three years from the date of the accident. If you lost a loved one in a fatal accident, you likewise have three years from the date of death to file a wrongful death lawsuit. However, there are often practical reasons to take legal action sooner, before evidence is lost or destroyed.

Ultimately, only an attorney can advise you on the best way to proceed in your situation. An attorney can also help determine how much your car accident claim is worth.

The value of a car accident claim depends primarily on the severity of your injuries and the effects those injuries have had on your life. In general, you can pursue compensation for two types of damages: economic and non-economic.

Economic damages are objectively verified losses that can be tied to a specific dollar amount, including:

• Medical expenses including but not limited to hospital bills, ambulance fees, medication, medical procedures such as surgery, medical devices, physical therapy, and future medical expenses.
• Lost wages if you are unable to work for a time due to your injuries.
• Lost future income if your injuries will permanently affect your ability to work and earn income.
• Replacement services such as childcare, yard work, or home maintenance if you need to hire someone to take care of those responsibilities due to your injuries.
• Modifications to your home or vehicle to accommodate a disability.
• Property damage to your vehicle or other personal property.

Non-economic damages are more subjectively determined, such as:

• Pain and suffering.
• Emotional distress.
• Loss of quality and enjoyment of life.
• Loss of consortium, a legal term for loss of intimacy and damage to family relationships.

In some cases, you may also be able to pursue punitive damages, which are intended to punish the at-fault driver or another responsible party for egregious conduct.

One of the reasons to hire an experienced car accident attorney is that your attorney can investigate, document your losses, and calculate the full, long-term cost of the accident.

If the driver who caused your accident doesn’t have insurance, doesn’t have enough, or is unknown (as in a hit-and-run), then you can file an uninsured/underinsured motorist claim with your insurance company if you have UM/UIM coverage.

Remember, under Montana law, the insurance company is required to offer you UM/UIM, and you must decline it in writing if you don’t want it. If your insurance company claims that you don’t have coverage, an attorney can investigate whether the insurance company met its legal obligations. An attorney can also look for other coverage that may be applicable to your claim, depending on the circumstances.