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May 26, 2024

New Orleans Gets Tough on Uninsured Drivers

May 26, 2024

Recent reports by the Insurance Research Council revealed that nearly 15% of drivers in Louisiana are uninsured drivers.

That means if you are hit by one of these drivers, recovering the compensation you deserve becomes much harder. In most cases of accidents with uninsured drivers, you will be restricted to whatever your insurance policy pays, and the sad truth is that often this is not enough.

Thankfully the State of Louisiana realizes the problem and intends to do something about it. They are rolling out a new insurance verification system over the next year or two. This system will allow police to confirm that any driver they stop is current on paying their insurance premiums.

How Do Uninsured Drivers Verification Systems Work?

New Orleans Gets Tough on Uninsured DriversPreviously, a police officer could only verify that the driver had a valid insurance card in the vehicle, and then had to radio in to have the main office verify the insurance policy with the insurance company.

Uninsured motorists could present a seemingly valid card during a traffic stop, that in fact, they had stopped paying the premiums for. Since the old system was time-consuming, prone to error and sometimes skipped during routine stops, many uninsured motorists would be able to get away with presenting a worthless insurance card.

Why Does New Orleans and Louisiana Need A New System?

Louisiana auto insurance rates are among the highest in the country.

On average, citizens of our state pay $1,842 in premiums each year versus the national average of $1,325. The high number of uninsured motorists is partly to blame. This preventive measure by the state will hopefully balance things out, but accidents with uninsured motorists are bound to still happen.

What do you do if this happens to you?

Here at Smiley Law Firm, we encourage all of our clients and readers of this blog to make sure you carry uninsured or underinsured motorist coverage (“UM”). In Louisiana you are given three options when purchasing auto insurance:

  1. Rejecting all coverage (not recommended and illegal).
  2. Choosing only economic (ex/damage) or non-economic (ex/pain and suffering) coverage.
  3. Selecting a lower amount of coverage ($15,000 minimum).

This is important because a significant number of Louisiana drivers either carry the minimum amount of coverage or no coverage at all. Adding uninsured or underinsured on your own auto policy will allow you to collect when someone hits you or your family and insurance does not cover your damages.

Adding uninsured or underinsured is a small percentage of your total premium. Ask your agent about adding in more coverage to make sure you and your family are protected.

Insurance companies will fight tooth and nail to eliminate a claim and minimize the amount they pay. You need an attorney who will stand up to the insurance companies and secure the compensation you deserve. The injury attorneys at Smiley Law Firm can help.

Contact us today for a free case evaluation.

Learn More From Smiley Law Firm’s Injury Blog

Here at Smiley Law Firm, we write about the topic of insurance issues all the time. In every personal injury case, there is an insurance element that is crucial. If people are educated on insurance, in the beginning, it makes the case flow more smoothly.
As personal injury attorneys, we believe in educating our clients and the public with the most up to date information available. We have a number of blogs and articles covering the following topics. Please read them and leave comments if you find the information helpful.

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