Partner at AKD Lawyers
Practice Areas: Personal Injury, Insurance Claims
No one expects to be in a car accident, but when it happens, the financial consequences can be overwhelming—especially if the other driver doesn’t have enough insurance. Louisiana has one of the highest rates of uninsured drivers in the country, leaving many responsible drivers vulnerable to expensive medical bills and vehicle repair costs.
Uninsured/underinsured motorist (UM/UIM) coverage is designed to protect drivers when an at-fault party doesn’t have insurance or lacks sufficient coverage. Many Louisiana drivers wonder, Do I need uninsured motorist coverage? Is it worth it? Understanding Louisiana’s insurance laws and how UM/UIM coverage works can help you make an informed decision about your policy.
What is Uninsured/Underinsured Motorist Coverage, and How Does It Work?
Car accidents are stressful enough, but they become even more complicated when the at-fault driver is uninsured or underinsured. That’s where UM/UIM coverage steps in. Uninsured motorist (UM) coverage applies when the other driver has no insurance. If you’re injured or your vehicle is damaged in a hit-and-run, this coverage helps cover medical bills and repair costs.
Underinsured motorist (UIM) coverage applies when the at-fault driver has insurance but their coverage limits aren’t enough to pay for all the damages. In such cases, your UIM coverage pays the remaining costs, preventing you from bearing the financial burden.
Do I Need Uninsured Motorist Coverage in Louisiana?
Many drivers assume that if they have collision and comprehensive insurance, they don’t need UM/UIM coverage. However, these policies only cover vehicle damage, not medical expenses or lost wages. If an uninsured driver hits you, you could be stuck paying thousands in medical bills out of pocket unless you have UM/UIM coverage.
In Louisiana, UM/UIM coverage is included in all auto insurance policies by default. You can opt out of it, but that decision could leave you financially vulnerable. Given the high number of uninsured drivers on Louisiana roads, declining UM/UIM coverage may not be the best choice.
Louisiana UM/UIM Law:
“Under Louisiana law, uninsured/underinsured motorist (UM/UIM) coverage is included in all auto insurance policies unless the policyholder explicitly rejects it in writing.”
Opting out of UM/UIM may save a small amount on monthly premiums, but the potential financial risks far outweigh the short-term savings.
Louisiana Car Insurance Laws and UM/UIM Coverage
Louisiana law requires drivers to carry liability insurance with at least:
$15,000 for bodily injury per person
$30,000 for total bodily injury per accident
$25,000 for property damage per accident
While these are the minimum requirements, they are often not enough to cover all damages in a severe accident. That’s why many drivers purchase additional coverage, including UM/UIM, to avoid paying out-of-pocket costs.
Drivers who reject UM/UIM coverage must do so in writing. Without this documentation, insurance companies assume you have UM/UIM coverage by default.
Is Uninsured Motorist Coverage Worth It?
Many drivers ask, Should I get uninsured motorist coverage? The short answer is yes. With nearly 12% of Louisiana drivers uninsured, the likelihood of being in an accident with someone who lacks insurance is significant.
Imagine you’re hit by a driver who has no insurance or only carries the minimum required coverage. Without UM/UIM, you might have to pay
- Thousands in medical expenses
- Costly vehicle repairs
- Lost wages due to injuries
Statistics on Uninsured Drivers in Louisiana:
“According to the Insurance Research Council, approximately 11.7% of Louisiana drivers are uninsured, posing significant financial risks to insured motorists.”
A slight increase in your premium for UM/UIM coverage can save you from paying out of pocket in the event of a crash.
Filing a UM/UIM Claim in Louisiana: Process and What to Expect
After an accident with an uninsured or underinsured driver, filing a UM/UIM claim can seem daunting. The process is straightforward if you follow these steps:
- Report the accident to the police and obtain a report.
- Document everything, including damage photos, witness statements, and medical records.
- Notify your insurance company and initiate the claim process.
- Submit supporting documents, such as repair estimates and medical bills.
- Negotiate a settlement with your insurance provider.
If your claim is denied or undervalued, consulting a personal injury attorney can help ensure you receive fair compensation.
Comparing Uninsured and Underinsured Motorist Coverage
|
Coverage Type |
When It Applies | What It Covers |
Key Benefit |
| Uninsured Motorist (UM) | At-fault driver has no insurance | Medical bills, lost wages, pain & suffering | Financial protection in hit-and-run cases |
| Underinsured Motorist (UIM) | At-fault driver’s insurance is insufficient | Remaining costs not covered by their policy | Helps avoid out-of-pocket expenses |
FAQs: Common Questions About UM/UIM Coverage
Do I need uninsured motorist coverage if I already have collision and comprehensive insurance?
Yes. Collision and comprehensive insurance only cover vehicle damage, while UM/UIM covers medical bills and lost wages if the at-fault driver is uninsured.
Can I reject UM/UIM coverage in Louisiana?
Yes, but you must reject it in writing when purchasing your policy. If you accept it, it is automatically included in your insurance policy.
How much-uninsured motorist coverage do I need in Louisiana?
Matching your UM/UIM coverage to your liability limits is recommended to ensure adequate protection in case of an accident.
What happens if I get into an accident with an uninsured driver in Louisiana?
If you have UM coverage, your insurance will pay for damages. Otherwise, you may need to sue the at-fault driver or pay out of pocket.
Does UM/UIM coverage also cover passengers in my car?
Yes. If you or your passengers are injured by an uninsured or underinsured driver, UM/UIM will cover your medical expenses.
Conclusion: Why Louisiana Drivers Should Consider UM/UIM Coverage
Louisiana has one of the highest rates of uninsured drivers, making UM/UIM coverage a critical financial safeguard. Even if you have collision and comprehensive insurance, UM/UIM provides additional protection for medical expenses and lost wages.
Understanding Louisiana’s car insurance laws and how to file a UM/UIM claim ensures you receive the coverage you need. Investing in UM/UIM coverage is a small price to pay for peace of mind in the event of an accident.
If you’ve been in a car accident with an uninsured or underinsured driver, Alvendia, Kelly & Demarest can help. Their team of experienced personal injury attorneys understands Louisiana’s insurance laws and can guide you through the claims process. Contact them today to ensure you receive the compensation you deserve.
Categories
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.
