Is uninsured motorist coverage worth it? Having uninsured motorist coverage can help protect you from experiencing financial hardship after an uninsured driver causes you harm.
A Lafayette car accident lawyer can review your policy and work with your insurance company and other possible sources to pursue compensation for your losses.
Uninsured Motorist Coverage Explained
In Louisiana, uninsured or underinsured (UM/UIM) insurance coverage is an optional type of auto insurance policy. Insurance companies must offer it in amounts equal to your liability coverage, but drivers can opt out by signing a written waiver. Opting in to UM coverage is worth it, in light of the financial protection it offers.
UM insurance applies if you, your vehicle, or your passengers sustain damage in an accident caused by an uninsured driver. Usually, victims file claims for compensation with the at-fault party’s insurance company.
When the negligent driver is uninsured, you don’t have that option, and could find yourself overwhelmed by medical expenses, car repair or replacement costs, and other losses. UM insurance provides much-needed coverage and relief in these circumstances. UM also applies if you are the victim of a hit-and-run, and the culprit is not identified.
Underinsured Motorist Coverage
Underinsured motorist (UIM) coverage applies when the at-fault driver is insured, but your losses exceed the policy’s limits. Your UIM can help bridge the gap between the policy limits and your accident-related costs.
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Insurance Requirements in Louisiana
Louisiana only requires drivers to carry liability insurance, as explained in the Louisiana Department of Insurance (LDI) Consumer’s Guide to Auto Insurance. Minimum coverage amounts include:
- $15,000 for one person injured in one accident
- $30,000 for injuries sustained by more than one person in a single accident
- $25,000 for property damage sustained in one accident
Failure to comply can lead to a license suspension or revocation and fines. If uninsured drivers have accidents, Louisiana’s “no play, no pay” rule prohibits them from collecting from the other driver’s liability for the first $25,000 in property damage and $15,000 for injuries. This rule applies even if the other driver is to blame. Still, these penalties don’t help when you are the victim of an uninsured driver.
Considering Whether Uninsured Motorist Coverage Is Worth It
According to Facts and Statistics: Uninsured Motorists from Insurance Information Institute (iii), 15.4% of drivers nationwide do not carry insurance. That percentage represents about one in seven drivers. In Louisiana, 11.7% of drivers are without insurance.
Though you may be a safe driver, others aren’t. If a negligent, uninsured driver causes your accident, you must deal with the physical, emotional, and financial trauma. Considering this devastating possibility, having UM insurance coverage is worth it.
If you are seriously injured in a crash with a driver holding minimum insurance, your medical expenses can quickly surpass policy limits. The expenses, along with the amount of wages lost during recovery time, require more than $15,000. UIM can help make up the difference.
No Penalties for UM/UIM Claims
Per Louisiana Revised Statutes (RS 22:1284), insurance companies cannot penalize you for filing a UM/UIM claim. The law prohibits companies from increasing rates, raising or adding surcharges, canceling, or failing to renew a client’s policy based on a single or multiple “non-fault accidents.” A non-fault accident is one in which you, the claimant and UM/UIM policyholder, are not to blame.
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The Three Types of UM and UIM Policies
While you have a choice whether to purchase UM/UIM coverage, you have additional options regarding specific types of coverage. There are three policy options:
- Standard policies cover bodily injury sustained by you or others in your vehicle. Coverage applies to medical costs, lost wages, and pain and suffering.
- Economic-only policies extend coverage only to injury costs and lost income.
- Property-damage policies have a $250 deductible and help cover vehicle repair or replacement costs. The amount provided represents the $25,000 policy limit or the vehicle’s cash value, whichever is less.
As with any insurance, increasing policy limits increases your coverage. Car accidents can cause unexpected, comprehensive devastation. Purchasing uninsured motorist coverage is worth careful consideration.
What it Means to “Stack” Insurance Benefits
With some restrictions, Louisiana lets crash victims stack uninsured motorist coverage. When you “stack” benefits, you basically combine coverage limits from more than one policy. The state allows victims to stack 3 insurance policies, but only up to 2 UM/UIM policies.
For example, if you are a passenger in someone else’s car and hurt by an uninsured driver, you could file with the vehicle owner’s UM policy and then with your own. If you have two cars and have UM policies on each, you could potentially stack these policies if you are hit by an uninsured driver.
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You Have Options After an Accident With an Uninsured Driver
An attorney can help you find the best way forward if you get hit by an uninsured driver. We can review your UM/UIM policy to see what coverage applies. You may have opted in to other additional coverage, and we can examine those policies as well. For example, you may have collision coverage to help pay for property damage or personal injury protection (PIP) to help pay medical bills and cover lost wages.
We may also recognize other liable parties. The uninsured driver may bear some fault for the crash, but an accident analysis may also show others are culpable. Faulty brakes or defective steering systems could make vehicle manufacturers liable. A government entity could be to blame if poor road conditions played a role in the crash. We can help find solutions.
We’re Here to Guide You Every Step of the Way
It can be hard to know what to do after an accident with an uninsured driver. The team at Galloway Jefcoat Injury Attorneys is here to help.
We know how UM/UIM policies work and can fight to secure the compensation you deserve. Connect today for a free case review. We’ll take it from there, handling every step of the process with skill you can trust.
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