Why You Need Underinsured/Uninsured Motorist Coverage in Louisiana

Car accidents can be devastating—physically, emotionally, and financially. In Louisiana, underinsured/uninsured motorist (UM/UIM) coverage is a critical layer of protection that many drivers overlook. With a significant percentage of motorists driving without proper insurance, it’s essential to understand why you should purchase this coverage and how it can protect you in case of an accident.

In this blog, we’ll explain everything you need to know about underinsured/uninsured motorist coverage in Louisiana, how it works, and why it’s a wise investment for every driver.

What is Liability Insurance?

Liability insurance is the minimum required coverage for drivers in Louisiana. If you’re at fault in an accident, this insurance helps pay for damages to the other driver’s property or injuries.

Key Facts About Liability Insurance in Louisiana:

• Minimum Coverage Requirements:
  • $15,000 per person for bodily injury
  • $30,000 per accident for bodily injury
• What It Covers: Damages to the other driver’s property and injuries
• What It Doesn’t Cover: Your own medical bills or property damage

“While liability insurance is necessary, it often falls short when the at-fault driver has minimal or no insurance.”

The Importance of Underinsured/Uninsured Motorist Coverage

While liability insurance is necessary, it may not provide enough protection if the other driver doesn’t have sufficient coverage or if they are uninsured altogether.

Underinsured/uninsured motorist (UM/UIM) coverage steps in when the at-fault driver’s insurance is inadequate or nonexistent. This additional protection can save you from financial ruin in the event of a severe accident.

What Does UM/UIM Coverage Do?

UM/UIM coverage pays for various expenses, including:

• Medical Bills: Covers hospital visits, surgeries, and rehabilitation costs.
• Lost Wages: Reimburses income lost due to accident-related injuries.
• Property Damage: In some cases, it can cover vehicle repair costs.
• Hit-and-Run Accidents: Protects you if the at-fault driver cannot be identified.

Why UM/UIM Coverage is Crucial in Louisiana:

What Happens If I Decline UM/UIM Coverage?

In Louisiana, insurers are required to offer UM/UIM coverage, but you can decline it in writing.

“While declining UM/UIM coverage lowers premiums, it exposes you to financial risks in accidents involving uninsured or underinsured drivers.”

Is It Worth Declining UM/UIM Coverage?

If you’re involved in an accident with an uninsured or underinsured driver, you could end up paying for medical bills, car repairs, and other expenses out of your own pocket.

Given the high number of uninsured and underinsured drivers in Louisiana, declining this coverage is a gamble you may not want to take.

The cost of UM/UIM coverage is often relatively low, especially compared to the potential financial disaster that could occur if you’re involved in a serious accident without it.

Will My Rates Increase if I File a UM/UIM Claim?

One of the most common misconceptions is that filing a UM/UIM claim will increase your insurance premiums or cause your insurance company to drop you.

However, under Louisiana law, your rates cannot be raised, nor can your policy be canceled if you file a claim for uninsured motorist coverage.

What Does Louisiana Law Say?

Louisiana law explicitly prohibits insurance companies from penalizing you for filing a UM/UIM claim. The only situation where your rates might increase is if you’re deemed at fault for the accident.

If an insurer raises your rates or drops you after a UM/UIM claim, they can be held liable for damages and legal fees, providing an additional layer of protection for you.

Why You Need an Experienced Personal Injury Attorney

Even with UM/UIM coverage, navigating the claims process can be challenging. Insurance companies often try to minimize payouts. An experienced car accident attorney can help by:

• Investigating the Accident: Gathering evidence to build a strong case.
• Negotiating with Insurers: Ensuring you receive fair compensation.
• Filing Legal Motions: Handling paperwork and court proceedings if necessary.

What to Do if You’re Involved in an Accident with an Uninsured Driver

If you’re in an accident with an uninsured driver, follow these steps to protect yourself:

1. Seek Medical Attention: Always seek medical attention, even if injuries seem minor. Some injuries might not show symptoms immediately.
2. Report the Accident: Call the police to file an accident report. This report will be crucial for your insurance claim.
3. Document Everything: Take pictures of the accident scene, vehicle damage, and any visible injuries. Gather contact information from witnesses and the at-fault driver (if possible).
4. Contact Your Insurance Company: Notify your insurance company about the accident and mention your UM/UIM coverage. They will guide you through the claims process.
5. Consult an Attorney: If you’re having trouble with the claims process, an attorney can help protect your interests.

How to Choose the Right UM/UIM Coverage for You

When selecting UM/UIM coverage, consider the following factors:

• Coverage Limits: Ensure the coverage limits match or exceed your liability coverage to ensure you’re fully protected.
• Cost: UM/UIM coverage is typically affordable, but compare rates from different insurers to find the best option.
• Policy Options: Understand the different options available, such as coverage for property damage or bodily injury, and select the ones that best fit your needs.

Why UM/UIM Coverage is Essential for Louisiana Drivers

Given the high rate of uninsured and underinsured UM/UIM coverage is a small investment that offers significant protection. Given the high rate of uninsured and underinsured drivers in Louisiana, it’s a practical way to safeguard your financial future.

“For a small premium, UM/UIM coverage can provide peace of mind and financial security in the face of unexpected accidents.”

FAQs

What is uninsured motorist coverage?

Uninsured motorist coverage protects you if you’re in an accident caused by a driver who doesn’t have insurance.

What does uninsured motorist coverage cover?

It covers medical bills, lost wages, and sometimes property damage.

Do I need uninsured motorist coverage if I have a collision and comprehensive?

Yes. Collision and comprehensive cover vehicle damage but do not protect you from expenses caused by uninsured drivers.

How much can I get from an underinsured motorist claim?

The amount depends on your policy limits and the severity of your damages.

What is underinsured motorist coverage?

Underinsured motorist coverage applies when the at-fault driver’s insurance isn’t enough to cover your damages.

How long does it take to settle an underinsured motorist claim?

The timeline varies but often depends on the complexity of the case and the cooperation of the insurance company.

Contact Charbonnet Law Firm for Legal Assistance

If you’ve been involved in an accident with an uninsured or underinsured driver, contact Charbonnet Law Firm for a free consultation. Our experienced personal injury attorneys can help you navigate the complexities of insurance claims, negotiate for fair compensation, and fight for your rights.

Contact us today to schedule a consultation and ensure you receive the justice and compensation you deserve.

Legal Resources

1. Louisiana Department of Insurance – This official site provides comprehensive information on insurance regulations in Louisiana, including details about uninsured and underinsured motorist coverage.
2. Louisiana State Government Insurance Resources – This portal may offer additional insights into state-specific insurance requirements and consumer protection information. (search for insurance-related topics)