If you drive a vehicle in Louisiana, state law requires that you carry liability insurance on your vehicle. Many people assume that as long as they pay their premiums on time, they won't have to worry about any financial consequences related to a crash caused by another driver. Sadly, that isn't always the case, and you could find yourself holding the bill after a wreck caused by a driver with inadequate insurance.
Thankfully, you can always add a simple rider to your insurance policy that will expand the amount and nature of the coverage you receive against crashes and collisions. Uninsured driver and underinsured driver coverage often costs very little to add to your insurance policy. The protection these riders offer could prove to be invaluable for you and your family.
A lot of people in Louisiana don't have insurance to drive
While Louisiana law does require that all vehicles on the road have an active insurance policy, some people choose to break that law. Others may have failed to pay a bill on time and don't even realize that their policy is lapsed when they get behind the wheel. Whatever the reason, the Insurance Information Institute looked at 2015 data to determine that roughly 13 percent of drivers on Louisiana roads do not have insurance.
That makes Louisiana the 20th in ranking, with 1st place going to the state with the lowest number of insured drivers (Florida). In other words, more than one out of every 10 people you pass on the road will not have insurance on their vehicle. If you get into a crash with one of them, you could end up in a financially difficult position.
Your insurance protects you against losses due to liability
Louisiana has relatively straightforward insurance, unlike the complex no-fault insurance available in some states. In other words, the person who causes the crash ends up paying for it. In order to ensure that drivers can pay for the property damages and medical expenses that result from a crash, the state mandates insurance to offset that liability.
In other words, your insurance policy generally won't cover damages or injuries related to a crash caused by the other driver. Instead, the insurance company of the driver at fault will pay those expenses. Your insurance company may pay some costs, but they expect to have the ability to go after the other driver's insurance company to recoup those costs.
Adding uninsured and underinsured driver riders to your policy protects you if someone without insurance causes a crash that injures you or damages your vehicle. With those riders in place, your policy will cover you in the event that you get hurt due to the actions of another driver who doesn't have insurance or doesn't have enough coverage to compensate you for your losses.