Car insurance claim rules in Montana

The clock on a Montana claim

Montana's Unfair Trade Practices Act, section 33-18-201 of the Montana Code Annotated, forbids failing to acknowledge and act reasonably promptly on claim communications and failing to affirm or deny coverage within a reasonable time after proof of loss is complete. It sets no number of days for those steps. Section 33-18-232 does set one for the decision itself.

If the insurer misses the deadline and owes the claim, it must pay the amount due plus 10% annual interest from the date the payment was due. Send your proof of loss in a way you can date, such as email or certified mail. Our page on claims that drag on covers what to do when the days run out.

When a Montana car is a total loss

Montana's title law uses no percentage. Section 61-3-210 defines a salvage vehicle as one damaged by collision, fire, flood or another event to the point that the owner, the insurer or someone acting for the owner decides the cost of parts and labor makes repair uneconomical. The decision rests on the insurer's own formula under your policy, usually repair cost plus the wreck's salvage value compared with the car's actual cash value.

• Ask for the numbers. Request the repair estimate, the salvage value and the valuation report the insurer used.
• Keeping the car usually means the settlement is reduced by its salvage value; the law calls this settling at a total loss less salvage.
• Test the offer. What actual cash value should include is in total loss claims, and the total loss check runs the formula.

Reporting a Montana crash

Section 61-7-108 requires a driver who knows, or should know, of a crash that injures or kills someone or causes property damage that looks like $1,000 or more to notify police at once by the quickest means: the local police department in a city or town, or otherwise the county sheriff or the nearest Highway Patrol office.

Section 61-7-109 adds a written report from the driver within 10 days of a crash with an injury, a death or property damage over $1,000. You don't have to file it if a law enforcement officer investigated and reported the crash. If an officer came, ask for the report number; your insurer will want it.

Fault and who pays

Montana is an at-fault state: the driver who caused the crash, through their liability insurance, pays for the injuries and damage they caused. Under section 27-1-702, your own negligence doesn't bar recovery if it was not greater than the combined negligence of those you seek to recover from, and your damages drop by your percentage. At 51% fault you recover nothing from them.

A claim against the other driver's insurer is covered in liability claims against the other driver. While fault is argued, your own collision coverage can repair the car and seek the money back later.

Deadlines to sue and where to complain

Section 27-2-204 gives 3 years for a tort claim such as a crash injury, and section 27-2-207 gives 2 years for injury to property, which includes damage to your car. Your policy may add its own time limits.

1. Ask the insurer in writing why it denied or cut the claim and which policy terms it relies on.
2. Call the Commissioner of Securities and Insurance (CSI), part of the Montana State Auditor's office, toll-free at 800-332-6148 or at 406-444-2040.
3. File a complaint in writing or online; CSI accepts complaints only in those forms. Our guide to insurance department complaints shows what to include.

Questions people ask