Auto Insurance: UMBI Coverage ~ Don't get caught without it

The most important insurance a safe driver can purchase in Louisiana is UMBI coverage. Typically an insurance provider has a driver sign a waiver that legally allows the company to not provide UMBI coverage.  This results in a driver having insurance to provide coverage for the harms and losses he might cause, but no coverage if he is the victim of a crash and the other driver lacks sufficient insurance. 

By law, your policy will include UMBI coverage at the same limits as your Bodily Injury Coverage unless you request otherwise.

UM coverage is important because many drivers that cause crashes do not carry enough insurance to cover all the harms and losses that a family can suffer in a car crash. UM coverage provides coverage when the person causing the crash is either underinsured or uninsured.

Each month our office is retained to help families deal with a crash. In most cases the families do not have UMBI coverage.  In one case a  nurse was hit by a drunk driver. Her injuries were serious and required her to receive numerous stitches to her face. Although she had a Liability Policy to cover any losses she caused anyone else, she did not have UMBI coverage because she had signed a waiver with her agent to "save money".    The drunk driver had no insurance. Since the drunk driver had no insurance and because she had signed a UM waiver- there was no insurance to help cover her harms and losses.

As a rule of thumb if you are being serviced by a company that did not sell you UMBI coverage at the same limits as your liability coverage- you should change companies and immediately add UMBI coverage to your coverage. 

Also if your agent requests that you buy UMEO (economic only) insurance to "save money" then you should find a new agent. 

This is a copy of a UM  waiver. Never sign these.

It is important that you call your agent and make sure that you have UMBI at the same limits as your liability policy.  Simply ask, "Do I have UMBI?"  and "Are the limits the same as my liability coverage?" These are important questions to ask to protect your family. 




Ryan E. Gatti, LLC is providing this update for informational purposes only. This article should not be construed as legal advice or a legal opinion as to any specific facts or circumstances. You should consult your own attorney concerning your particular situation and any specific legal questions you may have.