Partner at AKD Lawyers
Practice Areas: Personal Injury, Insurance Claims
Many Louisiana drivers carry basic auto insurance without realizing how exposed they are if a crash involves someone with no insurance or too little of it. Uninsured and underinsured motorist coverage, often called UM and UIM, fills that financial gap. It is one of the most important protections for Louisiana drivers, yet many people do not understand how it works or why it matters.
This guide explains UM and UIM coverage in plain language, covers Louisiana’s insurance rules, and shows what drivers should know before an accident happens.
Understanding Uninsured and Underinsured Motorist Coverage
Uninsured motorist coverage steps in when an at-fault driver has no insurance at all. Underinsured motorist coverage applies when the other driver has insurance, but their policy limits cannot cover all the damage from a crash.
These coverages typically help pay for medical bills, accident-related expenses, lost income, and in some cases, property damage. They also apply in hit-and-run crashes when the other driver cannot be identified.
Many drivers assume their collision or comprehensive coverage protects them, but those policies mainly cover vehicle repairs. UM and UIM focus on people, not just property.
Drivers often find the claim process easier when they have detailed documentation, such as medical records, repair estimates, photos of the scene, and the police report. These items help show how the accident happened and what it cost.
Why UM and UIM Coverage Matter in Louisiana
Louisiana’s high rate of uninsured drivers makes UM and UIM coverage especially valuable. A large number of drivers carry only the bare minimum insurance required by the state, which rarely covers the full cost of injuries after a serious crash.
Medical bills, rehabilitation costs, and vehicle repairs can add up quickly. Even moderate injuries can result in thousands of dollars in expenses. If the at-fault driver has no insurance or policy limits that stop short of covering these costs, UM and UIM become the only financial protection available.
According to the Insurance Research Council, approximately 11.7 percent of Louisiana drivers are uninsured, placing responsible motorists at significant financial risk.
This is why many financial experts advise choosing UM and UIM limits that match your liability limits, rather than relying on state minimums.
Louisiana’s UM and UIM Insurance Laws Explained
Louisiana includes UM and UIM coverage in every auto insurance policy by default. The only way to decline this protection is to reject it in writing. The rejection form must follow a specific format and be signed by the policyholder.
Under La. R.S. 22:1295, uninsured and underinsured motorist coverage is included in every auto insurance policy in Louisiana unless the driver rejects it in writing using the required form.
Louisiana’s minimum liability limits are:
- 15000 for bodily injury per person
- 30000 for bodily injury per accident
- 25000 for property damage
These limits often fall short when medical costs, lost income, and vehicle repairs are added together. UM and UIM coverage help bridge that gap and protect drivers from paying out of pocket.
UM can also apply to hit-and-run incidents. UIM applies once the other driver’s insurance has been fully used and the remaining losses exceed their limits. These rules are important because they shape how claims are handled and what drivers can expect after an accident.
How UM and UIM Coverage Work After an Accident
If a crash occurs with an uninsured or underinsured driver, the process to activate UM or UIM coverage usually follows a straightforward path.
First, report the accident to law enforcement and request a police report. Gather photos, witness details, repair estimates, and all medical records related to the incident. Notify your insurance company as soon as possible and provide the documentation they request.
UM coverage applies when there is no insurance available from the at-fault driver or the driver leaves the scene. UIM activates only after the other driver’s liability limits are exhausted.
Your insurance company then reviews your records, evaluates the damages, and determines how much of the remaining costs your coverage will pay.
Understanding your policy limits is important. UM and UIM only cover the amount listed on your policy, even if your total losses are higher.
UM coverage generally applies to hit-and-run accidents when the at-fault driver cannot be identified.
Comparing UM and UIM Coverage
The table below shows the differences clearly.
|
Coverage Type |
When It Applies | What It Pays For |
Why It Matters in Louisiana |
| Uninsured Motorist (UM) | Other driver has no insurance or flees the scene | Medical bills, lost wages, accident-related costs | Protects drivers from uninsured motorists and hit-and-run crashes |
| Underinsured Motorist (UIM) | Other driver has insufficient insurance limits | Remaining costs not covered by their policy | Helps cover high medical bills when liability limits are too low |
Practical Tips for Choosing Adequate UM and UIM Coverage
UM and UIM coverage levels vary, but matching them to your liability limits is often a smart choice. Louisiana’s minimum limits rarely meet the needs of a serious accident. Higher limits may offer better financial protection.
Some policies include economic-only UM and UIM, which cover medical expenses and lost income. Full UM and UIM coverage also includes non-economic damages, depending on the policy. Reviewing your insurance documents can help you understand exactly what type of protection you have.
Drivers who commute long distances, drive during heavy traffic hours, or live in areas with higher accident rates may benefit from choosing more robust UM and UIM limits. Reviewing policy language regularly can also help ensure the coverage still meets your needs.
FAQs
Does UM coverage apply if the other driver flees the scene?
Yes. UM coverage typically applies in hit-and-run crashes when the at-fault driver cannot be identified or insured.
Is the written rejection form required every time I renew my insurance?
No. A valid rejection form remains in place unless the policyholder makes major policy changes that require a new form.
What documents help support a UM or UIM claim?
Police reports, accident photos, medical records, repair estimates, and witness statements support most UM or UIM claims.
Does UM or UIM coverage apply if I am a passenger in another vehicle?
Yes. Coverage can follow the insured person, though specific policy language determines how it applies.
Is UM or UIM coverage the same as MedPay?
No. MedPay covers medical bills regardless of fault, while UM and UIM apply when another driver lacks insurance or has low limits.
Conclusion
Uninsured and underinsured motorist coverage offer important protection for Louisiana drivers. With so many uninsured and minimally insured motorists on the road, UM and UIM coverage can help prevent serious financial strain after a crash.
Understanding how these coverages work, the rules Louisiana follows, and what steps to take after an accident can make a meaningful difference when dealing with insurance.
If you were involved in an accident with an uninsured or underinsured driver and want clarity on your rights or policy options, you can speak with the New Orleans personal injury attorneys at Alvendia, Kelly and Demarest Law Firm.
Our team can review your situation and explain what Louisiana’s insurance rules mean for your case. You can request a free consultation to learn more.
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In 2003, after being dissatisfied with the quality of legal care for victims of car accidents, Roderick ‘Rico’ Alvendia sought to establish a new firm focused on providing high-quality legal services to aid injured victims and their families. J. Bart Kelly, sharing Rico’s passion for upholding justice, joined the firm later that year, and established a partnership.
