Disclaimer: This article is for informational purposes and does not constitute legal advice.
Detailed Answer
When the at-fault driver’s policy limits are exhausted, you still can pursue compensation for loss-of-use and rental car expenses under Montana law. You have two primary avenues:
1. Uninsured/Underinsured Motorist (UIM) Coverage
If the at-fault driver’s insurer has paid its full limit, turn to your own policy’s UIM coverage. Montana law requires that insurers offer UIM limits up to your liability limits (Mont. Code Ann. § 33-6-302). If you elected UIM, submit a claim for the remaining property-damage losses, including rental fees or loss-of-use.
Key steps:
- Review your declarations page to confirm UIM limits.
- Send a written notice of claim to your insurer.
- Provide documentation: rental agreement, daily rates, and proof the vehicle was unavailable.
- Negotiate or, if needed, demand appraisal under Mont. Code Ann. § 33-6-315.
2. Direct Claim or Lawsuit Against the At-Fault Driver
Even after policy limits are paid, the driver remains personally liable for additional damages. Under Montana’s measure-of-damages rule, you may recover “loss of use” as special damages in property-damage actions (see Mont. Code Ann. § 61-1-107).
To pursue a direct claim:
- Send a formal demand letter outlining your total damages (repair costs, loss-of-use, rental fees).
- If they refuse to negotiate, file suit in Justice or District Court depending on the amount. Small Claims Court handles up to $7,000 (Mont. Code Ann. § 27-1-210).
- Provide evidence: rental invoices, expert testimony on vehicle downtime, and repair shop records.
3. Rental Reimbursement or Gap Endorsements
Check if your own collision policy includes rental reimbursement or a gap endorsement. These cover daily rental fees regardless of fault. File a claim under that endorsement immediately after the accident.
4. Gather and Preserve Evidence
- Keep all invoices for rental cars and communications with insurers.
- Document the exact days you lacked a vehicle.
- Obtain a written repair timeline from your auto shop.
Helpful Hints
- File promptly to avoid missing Montana’s 3-year statute of limitations for property damage (Mont. Code Ann. § 27-2-204).
- Review your insurance policy carefully for UIM and rental reimbursement limits.
- Maintain a daily log of additional expenses incurred due to vehicle downtime.
- Negotiate before filing suit to save on court costs and attorney fees.
- Consider consulting a local attorney if negotiations stall or damages exceed small-claims limits.