Key points
- UM coverage can apply when the at-fault driver has no insurance or in a hit-and-run.
- UIM coverage can apply when the at-fault driver's limits are not enough.
- Your policy may require your insurer's consent before you settle with the at-fault driver.
Two coverages that protect you
Uninsured motorist (UM) coverage can pay when the at-fault driver has no liability insurance, or in a hit-and-run. Underinsured motorist (UIM) coverage can pay when the at-fault driver's insurance is not enough to cover your losses.
Both are part of your own auto policy. Whether you have them, and how much, is shown on your declarations page.
Why minimum limits often fall short
Montana requires liability coverage of at least $25,000 for injury to one person and $50,000 for injuries to two or more people in one crash. A single hospital stay can exceed those amounts.
Adding coverages together
If you insure more than one vehicle, you may wonder whether the coverages can be added together, often called stacking. The answer depends on your policy and on Montana law. Montana requires an insurer that charges a premium for a coverage to tell you in writing what the limits are and whether coverage from one policy or vehicle may be added to another.
Your own insurer is on the other side of this claim
In a UM or UIM claim, you are asking your own insurance company to pay. Your policy may require prompt notice, cooperation, and the insurer's consent before you settle with the at-fault driver. Settling the wrong way can put your UIM claim at risk.
Before you settle with the at-fault driver's insurer, talk with a lawyer about your UIM coverage.
Frequently asked questions
Will my rates go up if I make a UM or UIM claim?
It depends on your insurer and the facts. Montana insurers set their own rating rules. The coverage exists for exactly this situation, and you paid for it.
What about a hit-and-run?
Report it to law enforcement right away and notify your insurer. Uninsured motorist coverage may apply, subject to your policy terms.