Liability Insurance. In Montana, automobile liability insurance is required by law, § 61-6-103, MCA. The minimum limits for mandatory coverages are $25,000.00 per injured person and $50,000.00 per accident where more than one person is injured.
Under Montana law, liability insurance is called upon to pay medical and other out-of-pocket losses when they are incurred. Under Ridley v. Guaranty National Ins. Co., insurers must pay "settlements" on claims as they are made. Medical bills and loss of wages for injured parties can be catastrophic and this court decision offers protection; but Ridley does not apply when there is an argument about liability. As a result, insurance companies often refuse to pay these out-of-pocket costs for injured parties. Legal representation is essential to get through these disputes.
Uninsured Motorist. Under Montana law, every insurer must make available uninsured motorist coverage (UM) as an option on auto policies. The policy limits for UM parallel those for mandatory liability: $25,000.00/$50,000.00. No automobile owner is required to have uninsured motorist insurance, but we believe everyone should. (See § 33-23-201, MCA.) Where the careless driver who hits you has no auto insurance, you need your own uninsured motorist coverage to fall back on.
Medical Payments. Another type of automobile insurance coverage that everyone should have for their protection is medical payments coverage. Medical payments are available "no fault" to any injured person, including persons that the at-fault driver may injure. This coverage is optional, but it is important for everyone since it serves as a protective coverage for injured persons who may not be able to access liability coverage or uninsured motorist coverage.
Underinsured Motorist. Another type of automobile coverage is underinsured motorist coverage (UIM). UIM is intended to provide additional coverage where, in a given accident situation, the limits of liability of available insurances coverages are inadequate.
Underinsured motorist coverage is not mandated in Montana and is not mentioned in statutes. The coverage has been extensively argued about in court, however. Insurance companies have offered this coverage in given amounts and in bait and switch tactics have written the coverages such that the face amounts of the policy are not ever available. This problem has been largely worked out through court decisions, but injured persons who do not have legal representation are at risk of receiving less than the policy should provide.
Contract and Tort Theories. The legal theories that apply to liability insurance differ from those that apply to uninsured motorist and underinsured motorist insurance. A person who buys UM or UIM coverage has a contract with an insurance company to pay damages. This contract affects the defenses of the insurance company in certain situations. This distinction is buried in the legal approaches to auto insurance in litigation, and most people are not aware of it. Wherever a question of coverage or the extent of benefits available under a UM or UIM policy exists, legal representation is essential.
Stacking. "Stacking" is a critical concept to get the full benefit to which an accident victim may be entitled in automobile insurance. In Montana, multiple coverages for more than one vehicle are often able to be added together to increase the amount of monies available to a person injured by a careless driver. These rules are complex and riddled with exceptions. Insurance companies doing business in Montana have typically rejected the requirement to stack coverages where more than one automobile is insured. This is another area where legal representation is essential.
The law of automobile insurance has grown to be the most crucial area in automobile accident claims. Most of the rules are created by insurance companies in the manner in which they have written their insurance policies. Courts and the legal system have the obligation to enforce the policies and require insurance companies to provide the benefits that they claimed to offer. Legal representation to understand the details of insurance disputes in automobile accident litigation is essential. For quality representation in this area, call our office at (406) 728-4682 or send a message through our website at www.howardtoolelaw.net.
