Is Montana a no-fault car insurance state?

Montana is a wonderful state to either visit or reside. A number of celebrities are in agreement with this assessment. The legendary actor Michael Keaton maintains a residence in Montana. The attractive beauty of the state draws in and keeps many residents.

The various roads and highways in Montana cut through a very breathtaking environment. Visual beauty makes the mind easier to drift when traversing on the state’s roads.

Unfortunately, a drifting mind could lead to a car accident. A great many reasons can cause a vehicle collision. Hopefully, any driver involved in a car accident has the right insurance in place.

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Montana makes things a little easier for drivers to procure a minimal level of insurance. The state maintains very clear and detailed rules regarding vehicle insurance.

Montana laws are written in the best interests of residents and visitors alike since there is a requirement to resident drivers to maintain auto insurance.

Those new to purchasing insurance in Montana might be confused over how the state is categorized from an insurance perspective. Is Montana a no-fault state or a tort state? The answer plays a major role in the processing of an auto insurance claim.

What is no-fault car insurance?

No-fault auto insurance is found in 12 states. No-fault auto insurance simply means the policyholder files a claim for compensation against his/her own policy regardless of fault.

In other words, if a careful driver is injured due to the actions of a negligent driver, the careful driver files an injury and/or property damage claim through his/her own insurance company.

Personal injury protection coverage is employed for bodily injury whereas property damage liability would cover vehicle damage and more.

That said, under certain circumstances, an injured driver can seek to recover damages against the negligent party’s auto liability insurance. These circumstances vary from state to state.

States not falling under the no-fault category are known as tort states, which are sometimes referred to as fault-based states. In a tort state, the person who is at-fault for an accident is legally responsible for the financial consequences.

Someone running a red light and hitting another car likely ends up being liable for the injured party’s medical bills, vehicle damage, and more. More may include pain and suffering, lost wages, and other financial woes.

In no-fault states, settling claims may prove easier and without many legal entanglements although seeking a settlement from another driver’s auto insurance company is not necessarily always difficult.

Is Montana a no-fault state?

Montana is not one of the 12 no-fault states. Therefore, Montana falls under the category of a tort state. Benefits and drawbacks exist within Montana’s fault-based insurance system.

Mandatory insurance requirements are beneficial since the rules contribute to a decrease in uninsured motorists on the road. The presence of an active insurance policy further ensures there are assets to procure.

What does this mean? The $300,000 in insurance liability coverage is backed by a major insurance company with the assets to pay and do so quickly.

Suing a driver and garnering a judgment does not equate with an expedient payment. “Chasing” someone through legal channels to acquire money, if the money even exists, is not something a person under financial duress likely wants to deal with.

The liable party is not always capable of covering the losses associated with an accident.

A driver who carries uninsured/underinsured motorist coverage would file a claim against his or her insurance company if such a motorist caused an accident.

A driver reserves the option to file a car damage claim even when he/she is at fault through collision insurance.

At the core of mandatory insurance is coverage that pays for personal liabilities. These liabilities reflect coverage associated with paying for property damage and bodily injury. All parties involved in an accident, those at fault and the victims, may avoid financial devastation through a liability settlement.

Auto Insurance in Montana

– Minimum Requirements

Mandatory minimum insurance requirements assist with putting a certain monetary threshold in place to protect the at-fault driver and the accident victim. Montana imposes the following minimum requirements:

• $25,000 per person for car accident injuries
• $50,000 per accident when more than one person suffers an injury
• $10,000 per accident for damage to property

An obvious dark cloud hangs over these figures. The minimum requirements are rather low. Purchasing beyond the minimum requirements delivers much better coverage. Increasing coverage is prudent for those worried about protecting their assets.

A person with only $25,000 in liability coverage, a $275,000 home, and $300,000 in liabilities is probably slated to lose the home.

Purchasing the right level of auto liability insurance reduces financial risks. Remember, in Montana, the party who causes an accident becomes financially responsible for the losses.

– Finding the Right Coverage

Procuring additional insurance coverages such as comprehensive, collision, and uninsured motorist further cut down on the potential for losses.

Cutting auto insurance costs by purchasing only the minimal amount of coverage brings forth great personal financial risk. Comparison shopping for better rates is the best plan.

Easily the worst strategy to cut insurance costs entails not purchasing any insurance. Montana takes a very dim view of uninsured drivers. Those caught driving without insurance do face stiff penalties in the state.

– Penalties for Driving without Insurance

In Montana, the potential for serving jail time exists for those who do not carry the appropriate auto insurance. Specifically, the law states:

• First-time offenders face a $250 fine or upwards of 10 days in jail
• Second-time offenders face a $350 fine or upwards of 10 days in jail along with a 90-day license revocation and five points affixed to a driving record
• Further offenses face a $500 fine and upwards of six months imprisonment

A great deal of fallout occurs when any of these penalties are imposed. The marks on a driving record are sure to make the cost of any purchased policy to be really high.

The customer likely finds him/herself listed as a high-risk driver. High-risk auto insurance policies come with enormous premiums.

Even if no jail time is served, a conviction for driving without insurance means a record. Driving without insurance in Montana is a misdemeanor offense.

Barring an expungement, a misdemeanor conviction could haunt someone for years. A 45-year-old seeking a job or new employment may be required to address a misdemeanor conviction received at age 22.

Receiving a conviction for driving without insurance is very unnecessary. Simply purchasing a decent insurance policy prevents all the legal hassles and, hopefully, numerous financial risks.

Locating decent car insurance isn’t even very difficult.

Finding the Best Car Insurance Coverage in Montana

Once again, locating solid auto insurance coverage in the great state of Montana is not complicated. A bit of effort is required, though.

Reviewing policy quotes from numerous different auto insurance companies is recommended. The more quotes a customer looks at, the greater the chances are of finding the very best policy. Since quotes are acquirable online, procuring several of them may take only a few minutes of effort.

Be sure the online application is filled out thoroughly and correctly. Doing so further ensures you will receive an accurate quote.

First-time insurance buyers are not the only ones who should order several quotes.

Every six months, consider it a good idea to seek out at least three or four quotes for new auto insurance. Reviewing the quotes does not come with a requirement to switch policies. Not reviewing any new quotes makes switching to a better policy impossible.

Finding the best car insurance policy includes looking for the best insurance company. Several different factors should be weighed into any decision regarding what is the best company. Financial health definitely is among those factors.

Customers are advised to check out the following rating websites:

• A.M. Best
• Fitch Ratings
• Standard & Poor’s Insurance Ratings Services
• Moody’s Investor Services

Check out the consumer websites such as Consumer Reports and JD Powers. Learning about the financial health of the auto insurance company is critical because the company does need to be able to pay out when a claim is filed.

Additionally, customers help themselves by exploring available discounts. Discounts can bring down a policy price quite nicely. Top insurance discounts include:

• Good driver
• Anti-theft
• Multi-line
• Good student
• Multi-vehicle
• Driver education

Anything that saves money makes a good policy even better. And a good policy improves the experience of driving in Montana.

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