Do You Have Enough Car Insurance? Here’s What You Need to Know About Uninsured/Underinsured Motorist Coverage.

Last month we explained liability coverage and reviewed what Louisiana’s minimum coverage limits ($15,000 / $30,000 / $15,000) mean. This month, we are focusing on another important topic, Uninsured and Underinsured Motorist Coverage, also known as UM and UIM. It is one of the most valuable protections you can have.

What Is UM and UIM Coverage

Louisiana law requires every driver to carry minimum liability insurance, but it does not require UM or UIM coverage. Some other states do.

Here is how it works:

• Uninsured Motorist (UM) coverage protects you if the person who hits you has no car insurance.
• Underinsured Motorist (UIM) coverage applies when the at-fault driver has insurance, but not enough to pay for your damages or medical bills.

A Quick Warning

Some insurers sell what is called “Economic Only” UM or UIM coverage. It is cheaper, but it only covers economic losses, such as car repairs, medical bills, and lost wages. It does not cover pain and suffering or other non-economic damages.

Because of these limits, this option is not recommended.

Why It Matters

Many people get injured in a wreck, and the at-fault driver has no insurance or only a minimal policy. Without UM or UIM coverage, you may end up paying out of pocket for repairs and medical bills.

With UM or UIM coverage, you can file a claim through your own policy to cover your losses, including injuries, and avoid major financial pressure.

Will It Affect Your Rates

Louisiana law protects you here. Insurance companies cannot drop you or raise your rates for making a UM or UIM claim. You can use your coverage without worrying about penalties.

Bottom Line

Many drivers in Louisiana are uninsured or underinsured. UM and UIM coverage is affordable and can make a major difference after a serious accident.

If you want to confirm whether your current policy includes UM or UIM coverage, or if you need help reviewing your options, we can take a look for you.