Uninsured motorist coverage is mandatory insurance designed to protect policyholders. If you sustain damages in an accident caused by an uninsured driver, this coverage provides another means of compensation. The only way to not have uninsured motorist coverage is to waive it.
A Lafayette car accident lawyer can review your policy and fight to get you the coverage you deserve.
An Overview of Uninsured Motorist Coverage
Louisiana requires all drivers to carry minimum liability insurance coverage. This mandate is in place to protect all drivers. If you are hurt in a car accident caused by another party, you can file a claim for compensation with that party’s insurance company. Unfortunately, not all Louisiana drivers comply with this insurance mandate.
Though uninsured drivers can face fines and penalties for their non-compliance, those penalties do not help you recover your accident-related losses. Uninsured motorist coverage (UM) is optional coverage available to all drivers. It gives policyholders another way to secure compensation when they have an accident with an uninsured driver.
You can file for UM coverage when the driver whose negligence caused your crash has no insurance. It also applies if the accident was a hit-and-run, and the culprit is not found. UM policies can pay for property repairs, medical costs, and other related expenses, depending on the extent of your coverage.
"I have used Galloway Jefcoat a few times and have always been very satisfied. Furthermore, all of the people who work there are very professional, nice, and courteous."
The Difference Between UM and UIM Coverage
Drivers can also purchase Underinsured Motorist (UIM) coverage. The purpose of UM and UIM coverage is the same: to protect policyholders. UIM coverage applies when the driver who caused your accident has insurance, but the policy limits are too low to cover your losses. UIM can make up the difference.
According to the Louisiana Department of Insurance (LDI) Consumer’s Guide to Auto Insurance, minimum liability limits follow a 15/30/25 formula, representing:
- $15,000 for injuries for one person
- $30,000 for injuries for multiple people (in a single accident)
- $25,000 for property damage per accident
Medical costs for serious injuries can easily exceed that $15,000 policy amount, leaving you with bills.
How UM and UIM Coverage Works
Insurance companies must offer UM/UIM to all clients, per Louisiana Revised Statutes (RS) 1295, in amounts equal to liability coverage. If you choose to opt out, you must do so in writing. Your insurance company is legally required to honor your policy.
After you prove the other driver caused the crash and is either uninsured or underinsured, your company has to provide coverage within 30 days of receiving that proof. If they don’t, an experienced attorney can help you hold the company accountable.
Along with giving you your deserved coverage, the company may have to pay the attorney’s fees and penalties. To help avoid an unfair denial, it’s a good idea to talk to a car accident lawyer before the insurance company.
"As a client of Galloway Jefcoat for over two years I want to take a minute to say how much I appreciate the team handling my case."
Types of UM and UIM Coverage
There are three options for UM and UIM policies. They include standard, economic-only, and property damage coverage. The higher your policy amounts, the greater your coverage.
Standard UM/UIM Policies
These policies cover bodily injuries you or other occupants of your vehicle sustain in an accident caused by another driver. Coverage extends to medical costs, lost income, and your pain and suffering.
Economic-Only Policies
These policies are limited to covering only the actual costs of the injuries you or others in your car sustain, and lost wages. They do not compensate you for pain and suffering.
Property-Damage Coverage
These policies help cover vehicle repair or replacement costs and carry a $250 deductible. Typically, coverage is limited to the lower amount of either $25,000 or the cash value of the vehicle. You can opt to purchase higher coverage amounts.
"Great experience, from day 1 I felt like I finally had someone on my side and that feeling didn't leave me for 1 single moment."
How to “Stack” UM/UIM Coverage
The State of Louisiana lets crash victims stack uninsured motorist coverage, with some limits. “Stacking” is essentially combining coverage limits for more than one vehicle. In Louisiana, victims can stack three insurance policies to increase compensation, but only two can be UM/UIM policies.
For example, if you are a passenger in someone else’s vehicle and hurt in a crash caused by an uninsured or underinsured driver, you might be able to stack UM/UIM policies. First, you would seek coverage through the vehicle owner’s policy. Then, you could file with your own, “stacking” your UM/UIM insurance with the vehicle owner’s.
What to Do if You Don’t Have UM Coverage
Having uninsured motorist coverage is extremely helpful if you are in an accident with an uninsured driver. If you don’t have it, there may still be other ways to get you compensated for your accident-related losses, and an attorney can help explore them.
You may have purchased other optional auto insurance coverage. For example, you may be able to secure compensation for car repairs through a collision policy. You might have opted in to “Med Pay” to help pay medical bills or Personal Injury Protection (PIP) to cover medical expenses and income loss.
An attorney’s investigation could also reveal that another party contributed to the accident. A broken traffic signal or poor road conditions could put culpability on a government entity. If the other driver experienced a vehicle malfunction, that vehicle manufacturer may be liable.
Filing a UM/UIM Claim Should Not Cause an Insurance-Rate Increase
Louisiana prohibits insurance companies from penalizing policyholders who file UM/UIM claims. According to RS 1284, insurance companies cannot increase rates, raise or add surcharges, cancel, or fail to renew a policy based on “one or more no-fault accidents.”
Per the law, “nonfault” means you, the policyholder and claimant, were involved in an “accident, collision, or other incident,” but are not to blame for the event.
We Fight for What’s Right
No driver or insurance company is above the law. Drivers must honor insurance requirements, and insurance companies must honor their policies.
If an uninsured or underinsured driver causes you harm, or you need help filing for your uninsured motorist coverage, Galloway Jefcoat is here to help. Connect with us for a free case review. Turning wrong into right is what we do.
"Galloway Jefcoat helped me at a time when I felt lost and taken advantage of by my employer."
