What Is Underinsured Motorist Coverage in Louisiana?

Underinsured motorist coverage is part of your own auto policy that pays for your injuries when the at-fault driver does not carry enough insurance to cover them. It is packaged with uninsured motorist coverage, and together they are called UM coverage. Here is the part most Louisiana drivers do not know: UM coverage is automatically included in your policy at the same limits as your bodily injury liability coverage unless you rejected it in writing on a form approved by the state.

That single rule has paid for a lot of medical care. It also means you may have coverage you forgot about, or a rejection that does not legally count.

What Does Underinsured Motorist Coverage Actually Pay For?

UM coverage steps in when the other driver’s insurance runs out or does not exist. It can cover:

• Medical bills, including future treatment
• Lost wages and lost earning capacity
• Pain and suffering
• Permanent disability or disfigurement

It applies in several situations. If the at-fault driver has no insurance, your UM coverage responds. If the at-fault driver has a policy that is too small for your injuries, underinsured coverage picks up the difference. It also protects you in a hit-and-run where the other driver is never identified.

Your UM coverage generally follows you, not just your car. It can apply when you are a passenger in someone else’s vehicle or hurt as a pedestrian, depending on your policy language.

Why Does Underinsured Coverage Matter So Much in Louisiana?

Because the state’s minimum required liability coverage is low. A Louisiana driver only has to carry $15,000 in bodily injury coverage per person.

Think about what a real injury costs. One ambulance ride, an emergency room visit, imaging, and a short hospital stay can pass $15,000 before you ever see a specialist. If the driver who hit you carries the state minimum and you need surgery, their policy is exhausted quickly and the rest is your problem unless you have UM coverage.

There is also a 2025 change that makes carrying coverage more important than ever. Under Revised Statute 32:866, Louisiana’s No Pay No Play law, an uninsured driver cannot recover the first $100,000 of bodily injury damages or the first $100,000 of property damage, even when someone else caused the crash. That threshold jumped from $15,000 and $25,000 effective August 1, 2025. For most claims, that erases the recovery entirely. Driving without coverage in Louisiana now carries a penalty that dwarfs the premium.

Is UM Coverage Required in Louisiana?

Not exactly, and the distinction matters. Louisiana does not force you to buy UM coverage, but it forces insurers to include it unless you formally decline.

Under Revised Statute 22:1295, every auto liability policy issued in Louisiana must provide UM coverage at limits no lower than your bodily injury liability limits. The coverage drops out only if the named insured does one of three things on a form prescribed by the Commissioner of Insurance:

• Rejects UM coverage entirely
• Selects lower UM limits than the liability limits
• Selects economic-only coverage

If none of that happened, the coverage is in your policy whether you remember buying it or not. Check your declarations page before you assume you have nothing.

What Is Economic-Only UM Coverage?

It is a cheaper version of UM coverage that pays your financial losses but not your pain and suffering. Louisiana law defines the excluded category as noneconomic loss, which includes pain, suffering, inconvenience, and mental anguish.

So an economic-only policy can cover medical bills and lost wages while paying nothing for the human cost of a serious injury. If you were sold UM coverage at a reduced premium, look closely at which version you have.

Can an Insurance Company’s UM Waiver Be Invalid?

Yes, and this is worth checking in every case. Louisiana courts require a rejection of UM coverage to be clear and unmistakable, made on the form the Commissioner of Insurance prescribes.

When a form is defective, the rejection can fail and UM coverage gets read back into the policy at full limits. The Louisiana Supreme Court has invalidated a UM selection form that left out the insurer’s name, which restored coverage the company believed had been waived. Missing information, an unauthorized signature, or an outdated form can all matter.

The practical takeaway is simple. Do not accept an insurer’s word that you waived UM coverage. The form itself should be pulled and reviewed.

How Do You Make an Underinsured Motorist Claim?

Two things make these claims different from a normal accident claim. First, you are dealing with your own insurance company. Second, your interests and theirs are now opposed, because every dollar they pay you comes out of their pocket.

Steps that protect a UM claim:

• Notify your own insurer about the crash promptly, as your policy requires
• Get a copy of your declarations page showing your UM limits
• Ask for confirmation in writing of the at-fault driver’s policy limits
• Do not settle with the at-fault driver’s insurer before checking with your UM carrier, since an early release can jeopardize your UM claim
• Keep treating and documenting your injuries

Expect your own insurer to evaluate you the same way any adjuster would. Being their customer does not make them generous.

FAQ

What is the difference between uninsured and underinsured coverage?

Uninsured applies when the at-fault driver has no policy. Underinsured applies when the policy exists but is too small to cover your injuries. Both are part of UM coverage.

Do I have UM coverage if I never asked for it?

Probably yes. Louisiana includes it automatically at your liability limits unless you rejected it on the state’s prescribed form.

Will using UM coverage raise my rates?

Making a UM claim for a crash you did not cause is different from an at-fault claim. Ask your agent about your specific policy.

Can I use UM coverage in a hit and run?

Yes, in most cases. UM coverage is designed for situations where the responsible driver cannot be identified or has no insurance.

Should I talk to a lawyer before giving my own insurer a statement?

It is wise. In a UM claim, your insurer is the party paying, so its adjuster is not on your side.

Your Next Step After a Crash With an Underinsured Driver

If the driver who hit you carried too little insurance, your own policy may be the difference between covered care and a pile of bills. The Law Office of Heather C. Ford can pull your policy, check whether any UM rejection actually holds up, and press the claim with your carrier. Contact the firm for a free case review before you sign a release with anyone.