Insurance Claim Rights in Montana
Montana has a unique approach to auto insurance — while it does not technically mandate insurance before driving, the state does require proof of financial responsibility after an accident. Montana uses modified comparative fault with a 50% bar. The state requires uninsured motorist coverage for those who do carry policies.
25/50/20
Min. Liability
3 yrs
PI Deadline
2 yrs
PD Deadline
Yes
Diminished Value
Fault System
How Montana's At-Fault (Tort) System Works
Montana is an at-fault (tort) state. This means the driver who caused the accident is financially responsible for the other party's damages. After an accident, you file a claim against the at-fault driver's insurance company. If the claim is denied or undervalued, you have the right to file a lawsuit to recover your damages.
Deadlines
Statute of Limitations in Montana
Personal Injury
3 Years
You have 3 years from the date of the accident to file a personal injury lawsuit in Montana. Missing this deadline permanently bars your right to seek compensation for medical bills, lost wages, and pain and suffering.
Property Damage
2 Years
For property damage claims (vehicle repairs, total loss, personal property), Montana allows 2 years to file a lawsuit. This includes diminished value claims if applicable. Report damage to your insurer as soon as possible: report to insurer promptly; 3 years for personal injury lawsuit.
Coverage Requirements
Minimum Auto Insurance in Montana
Montana requires all drivers to carry at least 25/50/20 in liability coverage. These numbers represent the minimum bodily injury per person / bodily injury per accident / property damage limits in thousands of dollars. While these are the legal minimums, higher coverage is strongly recommended.
Bodily Injury / Person
$25,000
Maximum per injured person
Bodily Injury / Accident
$50,000
Maximum per accident total
Property Damage
$20,000
Maximum for property damage
Diminished Value
Diminished Value Claims in Montana
Montana Allows Diminished Value Claims
After an accident in Montana, your vehicle may lose market value even after high-quality repairs — this is called "diminished value." Montana allows you to file a diminished value claim against the at-fault driver's insurance to recover the difference between your vehicle's pre-accident and post-repair market value. The amount recoverable depends on the vehicle's age, mileage, damage severity, and repair quality.
Calculate your diminished valueKey Laws
Important Insurance Laws in Montana
Montana follows a modified comparative fault rule with a 50% bar (Mont. Code § 27-1-702).
Montana is one of the few states that does not require auto insurance by statute, though financial responsibility is required after an accident.
Uninsured motorist coverage is required and must be offered at liability limits.
Resources
Montana Department of Insurance
If you have a complaint about your insurance company or need help with a claim dispute in Montana, contact the state Department of Insurance. They regulate insurance companies operating in Montana and can assist with claim disputes, bad faith complaints, and coverage questions.
FAQ
Frequently Asked Questions About Montana Insurance Claims
Does Montana require car insurance?
Montana is unique in that it does not technically require auto insurance before you drive. However, you must show proof of financial responsibility after an accident, and driving without insurance can result in license suspension and fines. In practice, most Montana drivers carry insurance.
How does comparative fault work in Montana?
Montana uses modified comparative fault with a 50% bar. If you are 50% or more at fault for the accident, you cannot recover any damages. If you are less than 50% at fault, your recovery is reduced by your percentage of fault.
What are Montana's minimum liability limits?
For those who carry insurance, Montana requires minimum liability coverage of 25/50/20: $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $20,000 for property damage.
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