There are three types of auto insurance you should be talking to your insurance agent about when you renew your auto policy (or even sooner if you decide you are not properly insured). It is important to know what type of insurance you have, why you have it, and what amount of coverage you need. Your auto insurance agent should be talking to you multiple times during each renewal period to make sure they are selling you insurance coverage that meets your needs and expectations. If your agent has not matched the right types and amount of coverage to your level of risk tolerance, you could be exposed to 10’s of thousands of dollars (or more) in uncovered losses.
What are the different types of auto insurance coverage?
Auto Liability. One type of auto insurance coverage is auto liability insurance, which is required by law in Montana. Auto liability insurance provides coverage for injuries caused to others in an accident, as well as property damage caused by your vehicle. The minimum auto liability limits in Montana are $25,000 per person and $50,000 per accident.
Auto liability insurance typically covers two types of liability: bodily injury liability and property damage liability. Bodily injury liability covers medical costs, economic losses (such as lost wages), and injuries caused by an accident to others. Property damage liability covers repairs or replacement costs for property damaged by your vehicle.
What happens if the person who hits you doesn’t have auto liability insurance? In this case, you will need to file a claim with your own auto insurance company. Hopefully the State Farm/Progressive/Allstate agent sold you an auto insurance policy with ‘uninsured’ auto coverage. If your auto policy does not have this coverage, you are out of luck and you should be on the phone with your agent asking: ‘Why does my auto policy not have uninsured motorist coverage?’
Uninsured Motorist Coverage. Uninsured motorist (UM) coverage is not required in Montana, but it is strongly recommended to protect drivers like you who may be involved in an accident with an uninsured driver. UM coverage protects drivers and their passengers in crashes that are not their fault, if the other driver doesn’t have insurance. This coverage will help pay for your medical expenses, economic loss, bodily injuries, and other damages caused by an uninsured driver.
Almost 10% of the drivers on our Montana roadways are uninsured. If you are hit by an uninsured driver, it becomes your responsibility to provide insurance coverage to cover the loss. A collision between two vehicles traveling at 25 mph usually results in a trip to the emergency room and no less than $10,000.00 in medical expenses. Additionally, a 25 mph collision is typically enough to cause significant damage to your vehicle and may result in a total loss.
Based upon our more than forty years of experience, you should have no less than $50,000.00 in UM coverage on your auto policy, and if you can afford it, you really should carry $100,000.00 in UM coverage. You, your friends, and your family are worth it.
Underinsured Motorist Coverage. Underinsured (UIM) motorist coverage is probably the most important coverage your auto insurance agent can sell you. While 10% of drivers on our roads are uninsured, another 16% of drivers are underinsured. An underinsured driver has auto liability insurance but they have insufficient insurance coverage to fully cover the costs of a loss. If your auto insurance agent has not sold you at least $25,000.00 in UIM coverage, it is time for you to find a new agent.
Choosing the Best Coverage:
More than 25% of the drivers on our roadways are either uninsured or underinsured. This means it is your responsibility to carry automobile insurance coverage for about a quarter of the accident situations you will encounter every time you leave the house. The Montana Department of Transportation has recorded more than 107,000 crashes on Montana streets, roads, and highways from 2019-2024.
These are important statistics to keep in mind when choosing the best coverage for yourself. No one wants to plan for worst-case scenarios, but clearly accidents happen and there is a serious risk that you will be involved in an accident over the next five years. It is highly recommended that you contact your insurance agent, as soon as you are able and ask them: ‘What’s available? What’s the difference? And why is this important to me?’
If you or a family member were involved in an accident, or even if you just want a second opinion or the insurance coverage that has been recommended and sold to you by your auto insurance agent, please call and set up an appointment with Miller Tourtlotte Law. Our attorneys and amazing staff can help you.
Call Us Now (406) 294-3400.
