Montana Car Insurance Claim Laws

How long insurers have to handle your car insurance claim in Montana, when a car counts as a total loss, and what to do if the insurer falls behind.

Last reviewed October 24, 2026 by Ali Ahmad, MyAutoTriage editor.

Short answer

In Montana an insurer must acknowledge your claim with no fixed deadline (reasonably promptly), accept or deny it within 30 days after proof of loss (60 if more information requested), and pay within 30 days after proof of loss (60 if more information requested). Total loss rule: the insurer decides when repairs are uneconomical; state law sets no fixed percentage. Deadline to file an injury lawsuit: 3 years.

Claim-handling deadlines in Montana

Acknowledge your claim	No fixed deadline (reasonably promptly)
Accept or deny it	30 days after proof of loss (60 if more information requested)
Pay after agreement	30 days after proof of loss (60 if more information requested)

Rule: Mont. Code Ann. §§ 33-18-232(1)-(2); 33-18-201(2), (5).

The decision clock usually starts once the insurer has the proof of loss it asked for, not on the day of the accident. Ask the adjuster in writing what they still need, and keep a dated log of everything you send.

When a car is totaled in Montana

The insurer decides when repairs are uneconomical; state law sets no fixed percentage.

In practice most insurers apply the total loss formula: a car worth $15,000 with $3,000 of salvage value is usually totaled once repairs reach about $12,000. Ask the adjuster which test they used and for the valuation report.

Rule: Mont. Code Ann. § 61-3-210(8).

If the insurer misses a deadline or lowballs you

Send a short written follow-up that names the deadline and asks for a decision by a specific date.
If the offer is low, answer with evidence: repair estimates, comparable cars for sale, receipts.
Still stuck? File a free complaint with the Montana Commissioner of Securities and Insurance.

If you have to sue the other driver in Montana

Most claims settle without a lawsuit, but these rules decide how much leverage you have when you claim against the at-fault driver's insurer.

If you were partly at fault	Modified comparative fault (51% bar)
Deadline to sue for injuries	3 years
Deadline to sue for car damage	2 years

Your recovery is cut by your share of the fault, and you get nothing if you are more at fault than the other side (51% or more).

The lawsuit deadline (statute of limitations) usually runs from the accident date, and an open insurance claim does not pause it.

Rules: Mont. Code § 27-1-702; Mont. Code §§ 27-2-204, 27-2-207.

Sales tax and fees on a total loss in Montana

No state sales tax and no rule on fees; the insurer owes the car's cash value before the accident. Rule: Mont. Code Ann. § 27-1-306.

Total loss tax and fee rules in every state

Diminished value in Montana

From the at-fault driver's insurer: No court ruling found; often argued under the general rule. Open question (Hop v. Safeco, 2011).
From your own insurer: Not settled; depends on your policy. Eby v. Foremost Ins. Co., 374 P.2d 857 (Mont. 1962) suggests yes; the Supreme Court called it open in Hop v. Safeco, 261 P.3d 981 (Mont. 2011).

Diminished value rules in every state

Claim laws in nearby states

If the accident happened in another state, or the other driver is insured there, these rules may matter too:

Idaho: Insurer decides (no fixed %); decision with no fixed deadline (a reasonable time)
Wyoming: Insurer decides (no fixed %); decision within 45 days after the claim and bills (decide and pay)
North Dakota: 75% of value; decision with no fixed deadline (a reasonable time)

Free tools for your claim

Not legal, financial, or insurance advice. This page summarises rules and data for general education only. Insurance laws, deadlines, and formulas vary by state, by policy, and by insurer, and they change over time. Verify anything important with your insurance policy, your state department of insurance, or a licensed attorney before relying on it. Some of these rules apply only to certain claim types.

Frequently asked questions

How long does an insurance company have to pay a claim in Montana?

In Montana the insurer must accept or deny the claim within 30 days after proof of loss (60 if more information requested), and pay within 30 days after proof of loss (60 if more information requested). The clock generally starts once the insurer has the proof of loss it asked for, so keep a dated record of what you sent.

When is a car considered totaled in Montana?

In Montana: the insurer decides when repairs are uneconomical; state law sets no fixed percentage. You can challenge the actual cash value the insurer uses.

How long do I have to sue after a car accident in Montana?

In Montana you generally have 3 years from the accident to file an injury lawsuit and 2 years to sue for damage to your car. An insurance claim does not pause this deadline, so if talks drag on, check the date and speak to a lawyer well before it passes.

Can I recover if I was partly at fault in Montana?

Montana follows modified comparative fault (51% bar). Your recovery is cut by your share of the fault, and you get nothing if you are more at fault than the other side (51% or more).

What can I do if my insurer misses a deadline in Montana?

Send a written follow-up citing the rule and asking for a decision by a specific date. If that fails, file a free complaint with the Montana Commissioner of Securities and Insurance; a pattern of missed deadlines can also support a bad-faith claim.