Uninsured Motorist Coverage is More Costly Not to Have

glass on floor after car accident

All insurance companies offer Louisiana drivers uninsured/underinsured motorist coverage, but countless people opt out of receiving it because they feel it costs too much. It’s this common misconception that causes people to encounter severe problems whenever a crash occurs.

Most people don’t realize just how much uninsured/underinsured motorist coverage helps when they’re involved in an accident. However, it could often be the difference between thousands of dollars coming out of someone’s own pocket. Depending on the insurance company, it can be as little as a few extra dollars a month to add on this coverage and peace of mind.

How Underinsured Coverage Helps

In a crash where one party is at-fault, the injured person will go through the responsible driver’s insurance company to seek compensation. However, these claims and the amount of compensation the injured person can recover is dependent on the driver’s coverage limits.

In a severe crash in which the injured requires significant medical care, it can quickly exceed the minimum coverage of $15,000 for bodily injury per person in an accident. In this situation, the injured person may need to rely on their own underinsured motorist coverage to compensate for the additional amount needed.

With underinsured coverage, you’re making a claim against your own insurance company to cover damages in excess of those you receive from the other party should they have inadequate coverage.

How Uninsured Coverage Helps

While Louisiana requires all drivers to have auto insurance, some people don’t have it. Even worse, there are some people who cause an accident because of negligence and drive away, which is an illegal action referred to as a hit and run.

When a driver has no insurance or leaves the scene, who does the injured person file a claim with? In what would typically be a claim against someone else’s insurance, the injured person would go through his or her own insurance company for compensation.

Without uninsured/underinsured motorist coverage, what would typically be covered by an injured person’s own insurance company could cost tens of thousands of dollars out of pocket. The few dollars that would typically be added onto the premium seems a lot less expensive when you put into comparison with the potential expenses.

In Louisiana, the law prohibits insurers from raising your rates or removing you from a policy if you file an uninsured motorist claim. While you may hope that the other driver has insurance, this isn’t always a guarantee, and uninsured/underinsured coverage is your best bet at protecting yourself after an accident.

Louisiana law also requires insurers to include this coverage at the same amount as liability coverage, but some agents may try to get you to opt out. Make sure you read your entire policy and inquire with your insurance agent to learn if you have uninsured motorist coverage, and if you do, make sure it’s traditional as opposed to just economic only.

Should someone need to file an uninsured/underinsured motorist claim with their insurance and it is wrongfully denied, our team at Parker Alexander is here to help. Our Monroe car accident attorneys are not afraid of large insurance companies, and we always go the extra mile for our clients’ best interests.

Call us today to discuss your potential case: (318) 625-6262.

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