In Montana, as in most other states in the U.S., auto insurance is required by state law before a vehicle can be driven on public roads. However, there are multiple types of coverage, and not all of them are mandatory. Grachek Insurance, a respected agency in Kalispell, MT, discusses the different types of car insurance below and explains what they cover and whether they're required by law.
What Are the Most Important Types of Auto Insurance Coverage?
Liability coverage is mandatory; it protects other motorists against the cost of your mistakes. If you are at fault in an accident, it pays for medical treatments and the cost to repair or replace property. In Montana, drivers must buy $25,000 of bodily injury coverage per person, to a maximum of $50,000 per accident, as well as $20,000 of property damage coverage. It also pays for legal costs arising out of a lawsuit due to the incident.
Collision coverage protects your vehicle against damages incurred in on-the-road incidents that are your fault. It is not legally required, but if you have a newer car, it's wise to protect it with collision insurance.
Comprehensive coverage pays for non-collision losses to your vehicle. These include fire, flood, vandalism, and even theft. It is not mandatory, but if you live in an area where crime or natural disasters are likely, it’s wise to invest in this coverage.
Uninsured or Underinsured Motorist (UUM) Coverage
Normally, the at-fault driver's policy pays for damages or medical care. However, if you are struck by a driver without insurance or if the damages exceed that driver's policy limits, uninsured and underinsured motorist coverage comes in to play. It pays any expenses not covered by the other driver's policy, up to the limit of your coverage. It is not mandatory, but it is very useful.
Full coverage is not an actual type of auto insurance, but rather a term that insurers use to indicate full protection. Most companies use it to refer to a policy that includes the previous three types of coverage: collision, comprehensive, and UUM.
Auto insurance coverage comes in a wide array of options so you can purchase the precise amount of protection you need. For expert advice on your coverage, contact Grachek Insurance in Kalispell, MT. For more than three decades, they've been helping residents and businesses throughout Flathead County choose the auto, home, life, and renters insurance they need. Call (406) 755-4000 to speak to a knowledgeable agent or visit their website to request a free quote.