(Last Updated: April 6, 2023)
Uninsured or under-insured (UM) motorist insurance coverage is a part of your auto insurance policy that provides insurance protection in the event you are involved in a car accident caused by a driver that either does not have insurance (or does not have adequate insurance) to cover the financial costs for your damages.
In New Orleans, uninsured motorist coverage is not required; however, we highly recommend that you retain this coverage to protect you and your family from uninsured drivers, and do not decline it in an effort to save money on your policy costs.
How does uninsured motorist insurance coverage work in New Orleans?
Uninsured/Underinsured (UM) motorist insurance is coverage that you purchase to protect yourself from an at-fault driver that is not insured or does not have enough insurance to cover your damages. By purchasing uninsured/underinsured motorist insurance, you are buying an added layer of protection that will come into effect if another person injures you and does not have enough insurance.
Does my car insurance policy have uninsured motorist insurance in Louisiana?
In New Orleans and throughout the state of Louisiana uninsured motorist (also known as UM) coverage is typically part of all auto insurance policies, unless the policyholder specifically chooses not to include it on their policy. Often policyholders decline uninsured motorist coverage to decrease the cost of their policy premiums. However, we strongly encourage policyholders to retain this coverage, as there are many drivers in Louisiana without auto insurance or adequate coverage. If in the unfortunate event you are injured by a driver that does is not carry insurance or enough insurance to cover your injuries, medical costs, property damage, etc… it is critical that your car insurance policy includes UM coverage. Otherwise you may end up with no insurance available to cover your damages.
Can my car insurance company raise my rates or drop me if I make an uninsured motorist claim?
The short answer to this question is NO! Under Louisiana law, it is illegal for an insurance company to raise your rates or drop you as a customer if you file an uninsured/underinsured motorist insurance claim.
This is one of the biggest concerns of our clients, and a question we are always asked… whether making a claim under their uninsured/underinsured motorist insurance coverage will cause the insurance company to raise their rates or drop them as a customer.
The only way an insurance company can penalize you is if you are at-fault in an accident:
Louisiana Revised Statute Title 22, Section 1284 states:
A. No insurer shall increase the rate, increase or add a surcharge, cancel, or fail to renew any policy of motor vehicle insurance when such action is based on consideration of one or more nonfault incidents.
B. In this Section, “nonfault incident” means an accident, collision, or other incident involving a vehicle covered by a policy issued by the insurer in which the driver of the insured vehicle was not at fault, regardless of whether the incident was reported to any law enforcement agency.
So again, the short answer is that if you are not at-fault for the accident and you make a claim under your own insurance for uninsured/underinsured motorist insurance benefits, your insurance company cannot drop you or raise your rates.
What if my insurance company tries to raise my rates for making an uninsured/underinsured motorist insurance claim?
The insurance company can be liable to you for a premium refund, damages, and attorney’s fees. This means that not only does your insurance company have to pay you back your premium and a penalty, they also have to pay the attorney’s fees you incur.
So should you make an uninsured/underinsured motorist insurance claim in connection with your accident? If you are injured and there is no other insurance available or the other driver did not have enough insurance, of course you can make a claim. This is exactly what you pay for when you buy insurance – to use it when you need it.
If you would like to talk further about whether you should make a claim against your insurance company following an accident and if your insurance company can raise your rates or drop you as a customer as a result, give our office a call. We would be happy to discuss your claim with you and how best we may be able to help.
Client Testimonial
“[After my wreck,] I was scared and nervous, anxious about [how I was going to] pay for my medical bills. [I found Keith online and called him due to] his story. [Keith and his team are] friendly and honest. [They] helped me move forward, scheduled my doctors appointments, helped me understand everything in my case, and maximized the money recovered. They called and made sure everything was okay with me and my daughter. They became family to us. Everything was good and wonderful. Thank you so much for everything.”
Elan — New Orleans, Louisiana
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How to get help with your uninsured motorist claim in Louisiana
If you would like to talk further about whether you should make a claim against your insurance company following an accident and if your insurance company can raise your rates or drop you as a customer as a result, give our office a call. We would be happy to discuss your claim with you and how best we may be able to help.
For questions about a car accident in the New Orleans area, contact the experienced team at the Law Office of Keith L. Magness, LLC today at (504) 264-5587.
