Uninsured or Underinsured Motorist (“UM”) coverage protects you when you are in an accident with someone who does not have any insurance or not enough insurance to cover your damages.
Louisiana law requires the insurance company to issue UM coverage for bodily injury liability limits to all drivers under La. R.S. 22:1406(D). The basic minimum coverage for bodily injury liability limits in Louisiana UM coverage include:
Drivers can select a lower amount of coverage, economic damage only coverage or no UM coverage at all. If the driver chooses to reject UM coverage it must be done so in writing on a form provided by the insurance company.
I always recommend to my clients that they purchase UM coverage. It only slightly raises the yearly premium, but it can pay dividends if you are hit by a driver without proper coverage.
Without UM coverage in place, you have very limited options for recovering damages from an uninsured or underinsured driver. It is estimated that 1 in 6 drivers on Louisiana roads does not have insurance, as reported by recent studies from the Resource Council. Given these statistics, the likelihood that you will be in an accident with a UM strongly favors taking proactive steps to opt into a UM policy.
UM coverage accounts for a small percentage of your total insurance premium. With such a significant percentage of Louisiana drivers carrying either minimal coverage or none at all the added cost is far outweighed by the financial security provided by such a policy.
Of course, you should ask your insurance agent what the right coverage is for you given your own situation, but we strongly hope that you will take the approach we’ve highlighted in this post.
Insurance companies will attack like wild dogs to eliminate claims and minimize the amount of money they need to pay. With a knowledgeable and experienced Louisiana insurance attorney in your corner, you are on a much more level playing field with the insurance company.
The Smiley Law Firm can help. Contact us today. Please mention this blog or leave a comment below to let us know your thoughts on UM Coverage.