After a Louisiana car accident, injury victims often face significant property damage and personal injury. Notwithstanding maintaining insurance, claimants can be hesitant to file a claim with their insurance providers. Much of this reluctance comes from the unfounded fear that their insurance premiums will increase if they file a claim. However, Section 22:1284(A) of the Louisiana Revised Statutes prohibits insurance companies from increasing premiums, charging additional fees, canceling a policy, or refusing to renew a policy because of an accident the claimant did not cause.
However, despite this statute, insurance companies continue to engage in bad faith practices. Bad faith practices occur when an insurance company engages in “arbitrary, capricious, or without probable cause” conduct. This conduct might include unlawfully investigating, delaying, or denying a lawful claim. This most frequently occurs when a motorist is involved in an accident, resulting in serious damages, with an uninsured driver.
Under the law, motorists have the option to purchase uninsured motorist coverage (UIM) in addition to their liability coverage. UIM coverage provides drivers with protection if they are involved in an accident with a motorist who does not have enough insurance or any insurance to cover the victim’s damages. The coverage is also crucial in cases where the motorist is involved in a hit-and-run collision. The coverage is automatic in Louisiana, and drivers must specifically reject the coverage if they do not want it.