The Legal Framework: Tort-Based Liability
Montana operates under a traditional “fault”-based car insurance system, legally known as a “tort” system. This foundational principle means that the driver who is legally responsible (“at fault”) for causing a car accident is also financially liable for the resulting damages. These damages include medical expenses, lost wages, vehicle repairs, property damage, and pain and suffering endured by the other parties involved. The core objective of this system is to place the financial burden squarely on the party whose negligence or wrongful action led to the collision. This differs significantly from “no-fault” states, where each driver’s own insurance company typically pays for their medical expenses regardless of who caused the accident, and the ability to sue for non-economic damages like pain and suffering is severely restricted.
Determining Fault: The Role of Negligence
Establishing who is at fault in a Montana accident is the critical first step in any insurance claim or subsequent legal action. Montana uses the legal doctrine of “negligence” to make this determination. A driver is considered negligent if they fail to exercise the degree of care that a reasonably prudent person would under the same circumstances, thereby causing harm to others. Evidence used to prove negligence includes Montana Highway Patrol accident reports, witness statements, photographs of the scene and vehicle damage, traffic or surveillance camera footage, and expert testimony. Montana also adheres to a “modified comparative negligence” rule, which significantly impacts a claimant’s ability to recover damages.
Modified Comparative Negligence: The 51% Bar
Montana is a “modified comparative negligence” state, as codified in Montana Code Annotated § 27-1-702. This rule allows for the financial recovery of damages even if a claimant is partially responsible for the accident. However, it places a strict limit on this recovery. The court or insurance adjusters will assign a percentage of fault to each driver involved. A claimant’s total financial recovery is then reduced by their percentage of fault. Crucially, if a claimant is found to be 51% or more at fault for the accident, they are barred from recovering any financial compensation from the other party. For example, if a driver is awarded $100,000 in damages but is found to be 20% at fault for the crash, their recovery will be reduced by 20% to $80,000. If that same driver is found to be 60% at fault, they receive $0.
Mandatory Insurance Requirements
To legally operate a vehicle in Montana, drivers must carry minimum liability insurance coverage. This insurance is designed to cover the costs the policyholder becomes legally obligated to pay for causing injury or property damage to others. The state-mandated minimums are:
- $25,000 for bodily injury or death of one person in an accident.
- $50,000 for bodily injury or death of two or more people in an accident.
- $20,000 for property damage per accident.
These are often expressed as 25/50/20 coverage. It is critically important to understand that these minimums are often insufficient to cover the full extent of damages in a serious accident, especially those involving multiple vehicles, severe injuries, or expensive vehicles. Drivers are strongly encouraged to purchase coverage limits well above the state minimums to protect their personal assets.
The Claims Process: Dealing with Insurance Companies
After an accident in Montana, the injured party (the claimant) typically has three primary avenues for seeking compensation:
- Filing a Claim with the At-Fault Driver’s Insurer: The most common route is to file a third-party claim directly with the liability insurance company of the driver who caused the accident. An adjuster will investigate the claim, determine fault based on the evidence, and negotiate a settlement.
- Filing a Claim with Your Own Insurer: In certain situations, you may choose to use your own insurance coverage first. This is common if the at-fault driver is uninsured or underinsured, or if you carry collision coverage for your own vehicle repairs. Your company would pay you and then may pursue a process called “subrogation” to seek reimbursement from the at-fault driver’s insurer.
- Filing a Personal Injury Lawsuit: If a fair settlement cannot be reached with the insurance company, or if the dispute over fault is significant, the injured party may file a lawsuit against the at-fault driver in a Montana court. This litigation process is where the rules of comparative negligence are formally applied by a judge or jury.
The Role of Additional Coverage Options
Given the potential for high costs and the risk of underinsured motorists, Montana drivers should carefully consider several optional coverages:
- Uninsured/Underinsured Motorist (UM/UIM): This is arguably the most critical optional coverage in Montana. It protects you if you are hit by a driver who has no insurance (uninsured) or whose policy limits are too low to cover your damages (underinsured). UM/UIM coverage can compensate you for medical bills, lost wages, and pain and suffering that the at-fault driver cannot pay for.
- Collision Coverage: This pays for repairs to your own vehicle after an accident, regardless of who is at fault. Your insurer will pay the claim (minus your deductible) and then seek to recover the costs from the at-fault party’s insurer.
- Comprehensive Coverage: This covers damage to your vehicle from non-collision events, such as theft, vandalism, fire, or hitting an animal.
- Medical Payments Coverage (MedPay): This optional coverage pays for reasonable medical expenses for you and your passengers after an accident, regardless of fault. It can be used to cover deductibles and co-pays not covered by health insurance.
Statute of Limitations: Critical Filing Deadlines
Montana law imposes strict deadlines, known as statutes of limitations, for filing lawsuits after a car accident. According to Montana Code Annotated § 27-2-204(1) and § 27-2-207, an injured person has:
- Three (3) years to file a personal injury lawsuit.
- Two (2) years to file a lawsuit for property damage.
These deadlines are absolute. Failing to file a lawsuit within the applicable window will result in the court permanently barring your claim, and you will lose any right to seek compensation through the legal system. It is essential to begin the insurance claims process well in advance of these deadlines to preserve your legal options.
Disputes Over Fault and Bad Faith
Disagreements over who caused an accident are common. Insurance companies may initially deny a claim based on their own investigation, often arguing that their policyholder was not fully at fault or that the claimant shared a majority of the blame. In these situations, presenting compelling evidence is key. This can include independent witness statements, photographic analysis, and even accident reconstruction experts. Furthermore, Montana law requires insurance companies to act in “good faith” and fair dealing when handling claims. If an insurer unreasonably denies a claim, refuses to negotiate a settlement, or fails to conduct a proper investigation, they may be acting in “bad faith.” A policyholder or third-party claimant can sue the insurance company for bad faith, which can result in additional damages beyond the original claim value.
The Impact of Traffic Citations and Violations
While a traffic ticket, such as a citation for running a red light or speeding, can be used as powerful evidence of negligence in an insurance claim or civil lawsuit, it is not definitive proof of fault for the accident. The insurance adjuster or court will still conduct its own investigation into the full circumstances surrounding the collision. However, a violation of the Montana Motor Vehicle Code is strong evidence that a driver failed to exercise reasonable care, which is the very definition of negligence. Conversely, receiving a citation does not automatically mean you cannot recover damages if the other driver was also negligent; the comparative fault rule would still apply.
