Three Types Of Must-Have Insurance Coverage

If you are like most people, you probably bought your car insurance because it was required by law. Maybe you are a planner who understands the value of protecting your loved ones and your finances. You hope you never have to use it, but do you know what your policy covers should you become involved in an accident?

At Towe & Fitzpatrick, PLLC, we encourage you to understand the coverage you are paying for monthly or upon renewal. Why? If you are involved in serious accident, you may be entitled to compensation for medical bills, lost wages and pain and suffering, but who pays?

Insurance companies have deep pockets and the ability to cover large compensation awards, but when they have a way out of paying, they will take it — like when you or the at-fault driver has insufficient or no coverage. You can always go after the other driver's assets, but an individual driver doesn't have the same resources.

Were you injured? We'll fight for the maximum compensation you are entitled to and work to ensure that you get paid. Call us at 406-203-5148 or email us for a free initial consultation.

Many types of insurance may apply to a claim arising from a motor vehicle accident. Below are three types every driver should know about and have:

1. Liability Insurance

Liability insurance is required by law in most states, including Montana. Liability insurance covers the driver of a vehicle for damage caused by that driver's negligence. Liability insurance also pays the expenses of defending the driver against your claim.

2. Medical Payments Coverage (No-Fault)

An optional type of coverage offered by most insurance companies in Montana is medical payments coverage. This is some of the best, inexpensive coverage available. You should contact your insurance agent immediately and find out if you have medical payments coverage and, if not, add it to the coverage on all of your vehicles.

Medical payments coverage is a form of health coverage that is available to pay medical expenses of the driver and passengers. Fault does not matter. If you have medical payments coverage and are injured in an accident, regardless of who is at fault, your insurance company will be required to pay your reasonable and necessary medical expenses up to the limit of your medical payments coverage.

This coverage is available only through your own insurance. You are not entitled to medical payments coverage from another driver's insurance company.

If you have medical payments coverage, it will cover you even if you are not in your insured car when you are injured in a car accident. It will even cover you if you are injured by a car as a pedestrian.

3. Uninsured (UM) And Underinsured (UIM) Motorist Coverage

These are two additional types of optional coverage that you can buy from your insurance company. Like medical payments coverage, you should have these types of coverage. Call your agent and find out if you have them and, if not, add them to all of your vehicles immediately. In Montana, your insurance company is required to offer you UM coverage.

UM and UIM coverage protect you against people driving illegally without liability insurance and people who do not have enough liability insurance to compensate you for your injuries and damages. When you have UM and UIM coverage, your insurance company pays for your injuries up to the limit of the UM or UIM insurance you purchased after the insurance of the driver at fault is used up.

Even though your own insurance company pays you for UM and UIM coverage, it still looks out for its bottom line first. The adjuster for your own insurance company is trained to make the best deal for the company. You should have a trained professional make sure you get the best deal for you.

Like medical payments coverage, UM and UIM will cover you even if you are not in one of your insured cars when you are hurt in an accident.