Articles Posted in Insurance issues

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Motorists should take care in understanding and choosing their automobile insurance provider. After a Louisiana car accident, an insurance claim is the first step in recouping damages. It is vital that motorists are fully aware of their policies and their limitations. Drivers should shop around for an appropriate policy, get quotes, be mindful of insurance scrams, and only purchase insurance from authorized companies. The Louisiana Department of Insurance provides consumers with tools to determine whether an insurance company is legitimate. Choosing an appropriate insurance company is critical to recovering damages after an accident. However, in some cases, car insurance does not cover the extent of a person’s damages, and injury victims should contact an attorney to discuss their rights and remedies.

Under Louisiana’s car insurance laws, motorists must carry liability coverage for any automobile they own. The coverage provides protection for property damage or personal injury that the policyholder may be responsible for. The law requires that each vehicle has 15/30/25 liability limits. This structure provides $15,000 for bodily injury to one person, $30,000 for bodily injury to more than one person in one accident, and $25,000 for damages to another’s vehicle or property.

Liability insurance covers policyholders if they, their family members, and other drivers operating the car with permission, cause an accident. This insurance also provides coverage in certain instances, if the policyholder or their family member is driving another person’s vehicle or a rental car. Drivers can also purchase medical payments coverage. This coverage pays for medical expenses for a certain period after an accident. However, in some cases, the accident may result in long term medical expenses, and this coverage may be insufficient. In addition, comprehensive coverage pays for certain damages to a policyholder’s vehicle resulting from other causes, including fire, explosion, and vandalism. Moreover, collision coverage pays for damages to a policyholder’s vehicle regardless of fault. Some insurance companies offer towing and labor coverage, which pays a limited amount towards towing costs.

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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.

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