The sad truth is that many drivers travel the roads of Louisiana with low insurance or, worse, no insurance. In fact, a 2022 report found that 13.7% of drivers in Louisiana have no insurance.
Even assuming an at-fault driver actually has insurance, the available coverage may not fully compensate for your losses. It is for this reason that we strongly recommend to our clients that they carry uninsured/underinsured (UM/UIM) motorist coverage.
What Auto Liability Insurance Coverage is Required in Louisiana?
In Louisiana, the minimum required amount of liability insurance is $15,000 per person / $30,000 per vehicle for bodily injury, and $25,000 for property damage. However, as stated above, a great many drivers in Louisiana drive without insurance altogether, and even more carry only the minimum limits.
The Louisiana Department of Insurance has published a comprehensive primer on Auto Insurance within the state which addresses these limits and other types of coverages available, but not required. One such coverage is the UM/UIM coverage discussed here.
What is Uninsured/Underinsured Motorist Coverage?
Uninsured/Underinsured Morotist Coverage, sometimes referred to as “UM/UIM Coverage,” is a form of insurance coverage that you pay for on your policy that steps in if you’ve been in an accident with someone who has no insurance or has inadequate insurance limits.
Anyone who has required medical treatment as a result of an accident can tell you that the medical bills associated with even seemingly “minor” injuries can eat up insurance coverage quickly. It is for this reason that UM/UIM coverage is so valuable.
In Louisiana, UM/UIM coverage stacks on top of the at-fault vehicle’s coverage or steps in when the at-fault vehicle has no coverage (or cannot be identified, such as in a hit-and-run). Access to UM/UIM coverage can be the difference between being adequately compensated – or not compensated at all.
Are There Different Types of Uninsured/Underinsured Motorist Coverage?
Yes. In Louisiana, there are three types of UM/UIM coverage:
Uninsured/Underinsured Motorist Coverage: This coverage pays benefits to you if your car is hit by a driver who has no insurance (uninsured) or too little insurance (underinsured) to pay for the full amount of your injuries or property damage. If you have UM/UIM coverage, any bodily injury you or someone else in your vehicle suffers due to an accident caused by another driver is covered. Hit-and-run drivers may also be classified as uninsured motorists. However, in order to prove this, a statement from a disinterested witness is helpful.
Uninsured/Underinsured Motorist Economic-Only Coverage: This coverage is the same as UM/UIM coverage except that it only covers the actual costs of injuries to you and the occupants of your vehicle, such as medical bills. It does not cover “pain and suffering” unlike the standard UM/UIM coverage discussed above.
Uninsured/Underinsured Motorist Property Damage Coverage: If you are in an accident with an uninsured or underinsured driver, this coverage provides for repairs to your vehicle. A $250 deductible applies under this coverage, and with liability coverage, your recovery is limited to $25,000 or the actual cash value of the vehicle, whichever is less. You can purchase a higher recovery limit if you choose. Note: if your policy includes collision coverage, this coverage is not available.
What is the Procedure for Reducing or Rejecting UM/UIM Coverage?
This decision to reject or reduce UM/UIM coverage must be recorded on a specific form provided by the Louisiana Commissioner of Insurance and signed by the policyholder or his/her legal representative. Completing and signing this form implies that the insured has made an informed choice about their UM/UIM coverage, and this form is considered an integral part of the insurance policy, even if it’s not physically attached.
One critical point regarding UM/UIM coverage is that the form used to reject or select lower UM/UIM coverage remains valid for the duration of the policy. It does not need to be re-signed for policy renewals, replacements, or amendments, unless there is a change in the coverage amount.
Filling out this form correctly involves six steps, as detailed by the Louisiana Supreme Court in the case of Duncan v. USAA Ins. Co., 950 So.2d 544 (La. 2006). These steps are designed to ensure that all necessary information is clearly stated and agreed upon, validating the insured’s coverage choices.
- Initialing the selection or rejection of coverage chosen;
- If limits lower than the policy limits are chosen, then filling in the amount of coverage selected for each person and each accident (or for combined single limits);
- Printing the name of the named insured or legal representative;
- Signing the name of the named insured or legal representative;
- Filling in the policy number (if the number exists) at the time the form is completed; and
- Filling in the date.
For the form to be considered valid, it is essential that all six tasks are completed prior to the UM/UIM selection form being signed by the insured or their representative. The act of signing indicates the insured’s acknowledgment and agreement with the contents of the form.
An insurer unable to demonstrate that the form was fully completed before being signed by the insured fails to meet the necessary burden of proof to establish the form’s validity with clear and unmistakable evidence, as established in the Louisiana Supreme Court case of Gray v. ANPAC, 977 So.2d 839 (La. 2008).
Should an Attorney Assist with Completing the UM/UIM Form?
Yes. While this is not an absolute necessity, if you are unsure about which UM/UIM selection to make – or about anything else related to your auto insurance or car accident – then call us at RUDIN LAW and we will gladly assist you in making that decision FREE OF CHARGE.
Contact RUDIN LAW for a FREE Consultation TODAY!
If you’ve been involved in a motor vehicle accident, then you may be entitled to compensation. And the last thing you want to hear is that your entitlement to compensated is limited – or eliminated – because the at-fault party had low or no insurance. So, our message to you is clear: protect yourself by purchasing UM/UIM coverage immediately. We are here to assist you in determining what type of coverage to obtain and the amount of that coverage.
At RUDIN LAW, our dedicated team, led by attorney, Lee Rudin, will leverage our legal expertise and tireless commitment to justice to help you navigate the complexities of your accident and recover the compensation you deserve. If you’re tired of getting pushed around by the insurance companies, then stop being polite… and GET RUDE! Call us today at 504-500-5504.
