What Does The Uninsured Or Underinsured Motorist Coverage Actually Cover?
Uninsured motorist coverage protects you when you are injured in a wreck and the responsible or at-fault driver has either no insurance or a very limited amount of insurance. If there is no insurance on the other vehicle, your own uninsured motorist coverage will pay up to the limits that you purchased on your own policy. If you add up your bodily injury claim; your medical bills; property damages; and lost wages; and this exceeds the limited amount of coverage on the liability policy of the at-fault driver, then your own insurance company steps in and provides you insurance protection to cover the value of those items.
There is an “Economic Loss Only” UM policy available in Louisiana. But we advise against buying one of these. It covers only such economic losses such as: 1) loss of wages; 2) medical expenses, 3) travel to and from medical care providers, etc. There is no coverage for your pain and suffering, mental anguish or distress.
Is Uninsured Or Underinsured Motorist Coverage Automatically Added To Someone’s Policy?
In Louisiana, underinsured motorist coverage is not added automatically. Insurance companies do not like to sell you the coverage, because it is cheap coverage for the buyer. It is alleged that the insurance agents will sometimes just slip in a sheet of paper with a written disclaimer of the availability of uninsured motorist coverage, among various other paperwork, and hope that you will sign the waiver without reading it. Many clients think they have full coverage, when they really have no uninsured motorist coverage at all.
I Have Medical Insurance, Should I Purchase Additional Uninsured Or Underinsured Insurance?
Uninsured motorist insurance is always a good addition to your coverage. It is much less expensive than medical insurance coverage, which you buy and pay for on a monthly basis, and it is certainly easier to collect on.
Is Uninsured Or Underinsured Motorist Coverage Affordable?
Uninsured motorist coverage is affordable. It is definitely cheaper than the cost of your liability insurance coverage. And it is certainly cheaper than the cost of hospitalization, medical treatment, and lost wages due to an accident.
What Are The Top Misconceptions People Have About An Accident Involving An Uninsured Or Underinsured Motorist?
The average person seems to think that all people who drive automobiles are insured, and that is a definite misconception. They are not all insured. In Louisiana, in particular, we have many, many drivers who have either no liability insurance at all or only the minimum limits of automobile liability insurance. A second common misconception is that most people have a sufficient amount of insurance to cover your injuries and medical expenses. However, most drivers with insurance have only the minimum required amount to make them comply with the law. Yet another common misconception is that making an uninsured motorist claim against your own automobile liability insurance company will cause your rate to increase. If you are not at fault in causing the accident, the law of Louisiana does not allow your insurance company to raise your automobile liability insurance rates for making a UM claim.
For more information on UM/UIM Insurance Coverage In Louisiana, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (225) 228-3450.
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