People switch auto insurance carriers for various reasons, but most of the time, it’s to save money on premiums. In an effort to reduce the cost, insurance companies will sometimes suggest that you can save money by waiving UM (Uninsured Motorist) or UIM (Underinsured Motorist) coverage. Waiving UM coverage is NOT a good idea, though, and can come back to haunt you in the future.
In Louisiana, you are required to maintain a minimum of $15,000 in coverage per person and $30,000 per accident. In this scenario, if you get into a bad accident with someone who has minimum limits and you have $50,000 in medical bills, the other person’s insurance company is only responsible for $15,000.00. While you can seek an access judgment against the person who hit you, it typically takes years to litigate, lots of money, and ultimately the judgment may ultimately be discharged in bankruptcy court.
This scenario is more common than you might think and is where uninsured motorist coverage comes in. If you carry UM/UIM coverage (purchased at different rates, based on your desired limits), you would have the ability to file a claim with your insurance company in the above scenario to help cover your medical bills & pain and suffering.
We strongly recommend paying the added expense for UM coverage. Although it might seem like a simple way to save a few hundred dollars each year in auto insurance premiums, the payout following a severe
motor vehicle accident can be worth tens of thousands.
Have questions? Need help with a claim?
Contact us!