What is UM insurance and do I need it?
UM Insurance is uninsured or underinsured motorist insurance. It is usually an optional addition to a liability policy. Liability insurance is insurance an individual purchases to provide coverage in the event that he causes damage to another person. Uninsured/Underinsured motorist insurance, unlike liability coverage, which provides coverage to the other driver, provides insurance coverage to the purchaser if he is involved in an accident with a driver who has either no insurance or insufficient insurance to compensate him for his damages.
UM insurance kicks in when another driver is at fault for an accident, but that driver has no insurance or has policy limits that are smaller than your damages.
In Louisiana, the minimum coverage allowed for a liability policy is $15,000 per person/$30,000 per accident. If you are injured in an accident with more than a minor soft tissue injury, these minimums are very unlikely to adequately compensate you for your medical expenses, lost wages, and emotional distress damages to which you are entitled. UM coverage steps in to cover you for the loss.
In Louisiana, UM coverage must be actively declined by the purchaser of an insurance policy. Unless you decline this coverage, or reduce the amount of coverage, it will provide you UM coverage in the same amount as your liability coverage. We recommend that our clients not reject UM coverage. It provides additional protection to you in the event you are in an accident with one of the 12-14% of the population in Louisiana who is uninsured.
If you have been in auto accident and you are unsure of what steps you should take next, give us a call at (318) 459-9111 to set up a consult.