Do you have uninsured motorist coverage? If so, do you understand how it works? Recently, I had a client who was seriously injured in an automobile accident through no fault of his own. He was rear-ended by another motorist who had some insurance but not nearly enough to cover his injuries. As we discussed his insurance coverage, I discovered he had a good amount of uninsured motorist coverage. However, he was hesitant to make a claim against his own insurance, preferring to pursue the other driver. This scenario highlights a common misconception about uninsured motorist coverage that many people have.
What is Uninsured Motorist Coverage?
Uninsured motorist coverage is designed to protect you in the event that you are involved in an accident with a driver who either has no insurance or insufficient insurance to cover your damages. Many people are unaware of how this coverage works and the benefits it can provide.
Common Concerns About Claims
One of the most frequent concerns I encounter is the fear that making a claim on their insurance will result in higher premiums or even cancellation of their policy. In my 30+ years of experience in this field, I have never seen an insurance company raise rates or drop coverage solely due to an uninsured motorist claim.
Legal Framework for Uninsured Motorist Claims
Back in law school, we learned about the legal framework surrounding uninsured motorist coverage under Title 22 of the Louisiana Insurance Code. Recently, there have been significant changes to the law, particularly during the 2024 legislative session, which included a clear prohibition against insurers raising rates for uninsured motorist claims. The rationale behind this is straightforward: you cannot make an uninsured motorist claim if you are at fault for causing the accident. Since these claims are based on another driver's negligence, they do not trigger the same analysis that would typically lead to a rate increase.
Changes in Coverage Assumptions
Another critical change in the law is how coverage is presumed. Previously, coverage was automatically presumed unless explicitly rejected. Now, if a rejection is incomplete or confusing, the default will favor the insurance company. This means that individuals must be diligent in understanding their coverage options to ensure they are adequately protected.
The Importance of Comprehensive Coverage
When reviewing insurance policies, it is essential to ensure that you are not just signing up for economic-only coverage, which only compensates for lost wages and medical expenses, leaving out pain and suffering and general damages. Many individuals already have health insurance, so they might be looking for coverage that protects against future losses and lifestyle changes.
Protecting Yourself on the Road
In Louisiana, approximately 80% of drivers have either minimum limits or less, which underscores the importance of having uninsured motorist coverage. Due to the lack of enforcement of mandatory coverage laws, each motorist is responsible for protecting themselves against underinsured or uninsured drivers.
If you have been injured in an accident through no fault of your own, whether it involves a liability claim or something entirely different, do not hesitate to reach out. At Pierce & Shows, we are here to help you navigate the complexities of your case.
Get a Free Consultation
Contact us today to schedule a no-charge consultation where we can discuss your options, clarify the law, and explain how your case should proceed. Protect yourself and your future by understanding your rights and the coverage you have. We are here to assist you every step of the way. Call (225) 320-8050 or use our convenient online form. We look forward to working with you!