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Winslow Arizona , Car Insurance Writer

@winslow_arizona • 08/14/20 This answer was first published on 02/03/20 and it was last updated on 08/14/20.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

No, Montana is not a no-fault state. Montana is an at-fault (or "tort") state. That means the driver who causes an accident uses their insurance to pay for the other driver's bills from the collision. Police and insurance companies use the available evidence to decide who is at fault for the accident. Then the at-fault driver's insurance pays to cover the other driver's damages. Depending on their coverage, they might have insurance for their own damages, too.

"Fault" can be shared by drivers – for example, one driver could be 20% responsible for an accident while the second driver is 80% responsible. Montana has modified comparative negligence laws. That means if you are 50% or more at fault, you can't collect any damages from the other driver. If you're less than 50% at fault, you can collect damages minus the percentage that you're at fault. So if you're 30% at fault, you can recover 70% of what you spent on damages after the crash.

Why You Should Care That Montana is a Tort/Fault State

In tort states like Montana, medical coverage only pays out after fault has been determined. That means there are more legal hoops to jump through and a longer waiting period before fault is decided and a driver can get reimbursed. This type of system has other implications for drivers, too, including some that vary by state due to nuances in local car insurance laws.

Here's what tort insurance means for Montana drivers:

Tort insurance is typically cheaper than car insurance in no-fault states.
Drivers can sue the at-fault party for almost any type of loss after their collision. This includes lost wages, emotional distress, and hospital bills that exceed the at-fault driver's coverage.
You can collect damages from the other driver as long as you are less than 50% responsible for the accident.
Montana has a statute of limitations of 3 years after a car accident. That means you have 3 years from the time of the car accident to sue the at-fault driver, or vice versa.

Montana vs Other Tort/Fault States

State	Montana	North Dakota	South Dakota
Average Annual Car Insurance Premium	$1,256	$1,396	$1,002
Statute of Limitations	3 years	6 years	3 years
Rank Among Tort States (1 = cheapest)	26	20	39

Answer Question

Here's What Happens If You Are At-Fault in a Car Accident

Your liability insurance should pay for the other driver's expenses.

You will need to use other types of car insurance to cover your own repair and medical bills.

Your car insurance rates will go up by an average of 48% for 3-5 years.

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What states are PIP states?

The twelve states that require PIP insurance, also known as personal injury protection, are Delaware, Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon, and Utah. Of these states, 11 are "no-fault" states. Pennsylvania law requires drivers to purchase $5,000 in medical benefits, but does not mention PIP specifically. PIP coverage is also available, but optional, in seven additional states, plus the District of Columbia. … read full answer

PIP States

State	PIP Policy	No-Fault State?	Minimum PIP Coverage
Arkansas	Optional	No	$5,000
Delaware	Required	No	$15,000 per person, $30,000 per accident (plus $5,000 for funeral services)
Florida	Required	Yes	$10,000 per person
Hawaii	Required	Yes	$10,00 per person
Kansas	Required	Yes	$4,500 per person (plus a $2,000 burial benefit or up to $10,000+ for care/lost wages)
Kentucky	Optional	Yes	$10,000 per person, per accident
Maine	MedPay Required	No	$2,000 per person*
Maryland	Optional	No	$2,500
Massachusetts	Required	Yes	$8,000 per person, per accident
Michigan	Required (drivers who receive Medicaid can opt out as of July 2020)	Yes	$50,000 per person
Minnesota	Required	Yes	$40,000 per person, per accident
New Jersey	Required	Yes	$15,000 per person, per accident (up to $250,000 for certain life-altering injuries)
New York	Required	Yes	$50,000 per person (plus a $2,000 death benefit)
North Dakota	Required	Yes	$30,000 per person
Oregon	Required	No	$15,000 per person
Pennsylvania	Medical Benefits Required	Yes	$5,000 per person, per accident
South Dakota	Optional	No	No minimum coverage requirement
Texas	Optional	No	$2,500 per person
Utah	Required	Yes	$3,000
Virginia	Optional	No	$2,000 (plus up to $100/week for lost wages for up to 12 months, in some cases)
Washington	Optional	No	$10,000 per accident
Washington D.C.	Optional	No	$50,000 per person (plus $12,000 per person for lost wages and $4,000 for funeral expenses)

PIP insurance covers medical expenses for you and your passengers after an accident, no matter who is at fault. These expenses include ambulance fees, medical and surgical treatments, and prescriptions. PIP can also reimburse you for lost wages, home care expenses, and even funeral expenses.

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