Montana’s vast, open roads are a signature of its beauty, but they also present unique risks for drivers. Despite state-mandated minimum auto insurance requirements, many motorists operate vehicles with insufficient coverage. When a serious collision occurs, the at-fault driver’s policy limits can be exhausted almost instantly, leaving you with significant unpaid medical bills, lost wages, and other damages. This is where underinsured motorist (UIM) coverage becomes critical. Navigating a UIM claim is a complex legal process fraught with pitfalls, and securing the full compensation you deserve often requires the specialized expertise of a Montana personal injury attorney.
Understanding Underinsured Motorist Coverage in Montana
Montana law (MCA 61-6-103) requires all auto insurance policies issued in the state to include underinsured motorist coverage unless the insured explicitly rejects it in writing. This UIM coverage is designed to protect you and your passengers when the at-fault driver’s liability limits are too low to cover the full extent of your losses.
An underinsured motorist is defined as a driver whose bodily injury liability limits are less than the amount of the insured’s damages and less than the limits of the insured’s own UIM coverage. It is not merely a comparison of policy limits. For example, if your damages total $200,000, the at-fault driver has a $100,000 policy, and you have a $250,000 UIM policy, the driver is considered underinsured because your damages exceed their limits. Your UIM coverage would then provide an additional layer of financial protection, potentially covering the gap up to your policy’s limit.
It is crucial to distinguish UIM from uninsured motorist (UM) coverage. UM applies when the at-fault driver has no insurance whatsoever. UIM applies when they have insurance, but it is inadequate. Montana drivers should carefully review their policies to understand their specific UM/UIM limits and any potential stacking provisions.
Why Insurance Companies Dispute UIM Claims
While you pay premiums to your own insurer for UIM protection, it is essential to understand that your insurance company is still a for-profit entity. When you file a UIM claim, you are effectively making a claim against your own insurer. This creates an inherent conflict of interest. The insurer’s financial incentive is to minimize payouts to protect its bottom line, which can lead to several common tactics:
- Disputing Liability: Your insurer may surprisingly argue that the other driver was not fully at fault or that you were partially to blame to reduce the value of your claim.
- Undervaluing Injuries: They may downplay the severity of your injuries, argue that certain treatments were unnecessary, or claim your injuries were pre-existing and not caused by the crash.
- Challenging Damages: Insurers will meticulously scrutinize every aspect of your claimed damages, from medical bills and lost income to pain and suffering, often offering a settlement far below the true value.
- Lowball Settlement Offers: A quick, low settlement offer is a common strategy to resolve the claim for less before you fully understand the long-term impact of your injuries or consult an attorney.
- Policy Interpretation Disputes: Insurers may interpret policy language, exclusions, or the “other insurance” clauses in ways that limit your recovery.
The Critical Role of a Montana Lawyer in Your UIM Claim
An experienced Montana personal injury attorney levels the playing field. They understand the tactics insurers use and have the legal knowledge and resources to build a powerful case on your behalf.
1. Comprehensive Case Investigation and Evidence Gathering
A lawyer will conduct a thorough investigation that goes far beyond the police report. This includes obtaining and analyzing all medical records and bills, collecting witness statements, working with accident reconstruction experts if necessary, and documenting all economic and non-economic losses. This creates an undeniable link between the collision and your damages, forming the foundation of a strong demand package to the UIM insurer.
2. Navigating Complex Policy Language and “Other Insurance” Clauses
UIM claims can involve multiple insurance policies—yours, the at-fault driver’s, and potentially those of household members or other involved vehicles. Policies often contain complicated “other insurance” or “non-duplication” clauses that determine how coverage is prioritized when multiple policies apply. A lawyer is essential to interpret these clauses correctly to ensure you are accessing all available coverage, including potentially stacking your policies to increase the available limits.
3. Managing the “Right to Subrogate” and Protecting Your Recovery
Subrogation is your insurer’s right to seek reimbursement from the at-fault party for the money they pay you. In a UIM claim, this process must be carefully managed. Your attorney will ensure that any settlement with the at-fault driver’s insurance company is structured correctly to preserve your right to then pursue a UIM claim without jeopardizing your insurer’s subrogation rights. Mishandling this step can result in a complete denial of your UIM benefits.
4. Skillful Negotiation with the Insurance Company
Attorneys are trained negotiators. They will prepare a detailed demand package that compellingly outlines the facts of the case, the clear liability of the other driver, the full extent of your damages, and the legal basis for recovery. They will handle all communications with the claims adjuster, countering lowball offers and bad-faith arguments with legal precedent and factual evidence. Their goal is to negotiate a fair settlement that fully compensates you for your past, present, and future needs without the need for litigation.
5. Litigation and Bad Faith Insurance Practices
If the insurance company refuses to offer a fair settlement, your attorney must be prepared to file a lawsuit. This lawsuit can have two components: a breach of contract claim for failing to pay the UIM benefits owed under the policy, and, if appropriate, a separate bad faith claim. In Montana, insurers have a legal duty to deal fairly with their policyholders. If they act unreasonably in investigating, evaluating, or denying a claim—such as by ignoring medical evidence or failing to conduct a proper investigation—they can be sued for bad faith. A bad faith verdict can result in the insurer being liable for not only the original UIM benefits but also for additional damages, including emotional distress and potential punitive damages.
The Financial Aspect: How Attorney Fees Work
Most personal injury attorneys in Montana handle UIM claims on a contingency fee basis. This means you pay no upfront legal fees. The attorney’s fee is a predetermined percentage (typically one-third) of the financial recovery they secure for you. If they do not win your case, you owe no attorney fees. This arrangement ensures that your legal representation is accessible and that your attorney is highly motivated to maximize your financial recovery.
What to Look for in a Montana UIM Attorney
When selecting legal counsel for an underinsured motorist claim, seek a lawyer or law firm with:
- Specific Experience: Proven expertise in Montana auto accident law and a track record of successfully handling UIM claims, including those that go to trial.
- Resources: The ability to hire top-tier medical experts, economists, and accident reconstructionists to strengthen your case.
- A Reputation for Toughness: Insurers know which attorneys are prepared to litigate and which are not. Hiring a respected litigator often leads to better pre-trial settlement offers.
- Clear Communication: A professional who explains the process clearly, manages expectations, and keeps you informed at every stage.
The aftermath of a serious car accident is overwhelming. Dealing with injuries, financial stress, and a complex insurance claim is too much to handle alone. An underinsured motorist claim is a legal battle against a powerful adversary, and having a skilled Montana lawyer advocating for you is not just an advantage—it is a necessity to ensure your rights are protected and you receive the full compensation the law allows.
