Uninsured vs. Underinsured Motorist Coverage in Louisiana

By the FigureMyTax Editorial Team · How we calculate

Louisiana has one UM coverage that includes underinsured drivers. It applies unless an insured named in the policy rejects it, selects lower limits or selects economic-only coverage on the commissioner's form.

One coverage

La. R.S. 22:1295(1)(a) requires coverage, in not less than the policy's bodily injury limits, for nonpunitive damages from owners or operators of "uninsured or underinsured" vehicles. An insured vehicle also counts as uninsured when its liability coverage is less than the damages you suffered, as agreed by the parties and their insurers or determined by final adjudication (paragraph (2)(b)), and when its insurer is insolvent.

The rejection form

A rejection, lower limits or economic-only selection must be on the form prescribed by the commissioner, provided by the insurer and signed by the named insured. A properly completed and signed form creates a rebuttable presumption that you knowingly chose. If it is signed but not properly completed, there is no UM or modified UM coverage if it is determined that you intended to reject or modify it. The insurer must verify the form, keep a copy and cannot delegate that duty to its producer.

Minimum limits and economic-only

UM limits may not be less than the liability minimums of R.S. 32:900, which are $15,000 per person, $30,000 per accident and $25,000 for property damage, unless economic-only coverage is selected. Economic-only coverage excludes all noneconomic loss, including pain, suffering, inconvenience and mental anguish.

No pay, no play

Under R.S. 32:866, there is no recovery for the first $100,000 of bodily injury or property damage for an owner or operator who fails to own or maintain compulsory liability security, with listed exceptions. That rule limits claims against others; it is separate from your own UM claim.

Deadlines and next steps

Delictual actions are subject to a liberative prescription of two years from the day injury or damage is sustained (Civil Code art. 3493.1). Stacking is a separate question; see our statute post and the explainer, then use the Louisiana UM/UIM stacking calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Louisiana's rules apply to your specific case with a licensed Louisiana attorney.