When people review their auto insurance policy, they often focus on the monthly premium.
What many drivers overlook is whether they have enough uninsured/underinsured motorist coverage, commonly known as "UM" coverage.
After handling hundreds of personal injury claims, I can tell you that UM coverage is one of the most important protections available under a Louisiana auto policy.
I have seen clients avoid financial disaster because they had UM coverage. I have also seen people suffer life-changing injuries with little or no insurance available to compensate them.
What Is UM Coverage?
UM stands for uninsured motorist coverage.
This optional coverage protects you if you are injured by:
In those situations, your own UM coverage may step in and provide compensation for damages such as medical expenses, lost wages, and personal injuries.
Why Is UM Coverage So Important?
Many drivers assume that if someone causes an accident, there will be plenty of insurance available.
Unfortunately, that is not always the case. Some drivers have no insurance at all. Others carry only Louisiana's minimum liability limits. In a serious accident, those limits can be exhausted very quickly.
Consider a person who suffers severe injuries requiring surgery. Medical bills alone can easily exceed the minimum insurance limits carried by many drivers.
Without UM coverage, there may be little additional insurance available.
How Much UM Coverage Should You Have?
When purchasing UM coverage, you can typically choose the amount of protection that best fits your needs.
One important rule to remember is that your UM limits generally cannot exceed your bodily injury liability limits.
For example, if you want $100,000 in UM coverage, you will generally need at least $100,000 in liability coverage as well.
The amount of coverage that is right for your family depends on many factors, which is why it is worth discussing your options with your insurance agent.
Beware of "Economic Only" UM Coverage
Not all UM coverage is the same.
Some policies include what is known as UM Economic-Only coverage, often called UMEO.
While UMEO may cover certain economic losses such as medical expenses and lost wages, it generally does not cover pain and suffering and other general damages.
Before selecting UMEO, make sure you understand how it differs from traditional UM coverage.
Other Coverages Worth Considering
UM coverage is extremely important, but it is not the only optional coverage worth reviewing.
Depending on your circumstances, you may also want to discuss:
Each serves a different purpose and may help protect you after an accident.
The Bottom Line
Take a few minutes and pull out the declarations page from your auto insurance policy.
Do you have UM coverage? If so, do you know how much?
A brief conversation with your insurance agent today could prevent a major problem tomorrow.
And while you're reviewing your policy, ask yourself one more question: Do you really have "full coverage"?
Questions About Insurance Coverage After an Accident?
If you were injured in a car accident and have questions about available insurance coverage, contact Flattmann Law today for a free and confidential consultation.
We represent clients throughout St. Tammany Parish, Tangipahoa Parish, Washington Parish, and communities across the Northshore including Covington, Mandeville, Slidell, Hammond, Madisonville, and the New Orleans metro area.
Call (985) 590-6182 today.
When you hire us, rest assured that an attorney handles your case. Your
file won’t be handed over to a junior attorney or secretary. Communication is a cornerstone of our firm.
Our legal library is full of articles on a variety of topics related to personal injury claims in Louisiana. Learn about how accidents happen, what to do when you are a victim, and how an attorney can help you fight for the compensation you may deserve.
