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Understanding Louisiana Law: Unraveling The Differences Between Economic Only And Bodily Injury Uninsured/Underinsured Motorist Coverage In Automobile Insurance Policies

When it comes to protecting oneself on the roads, having adequate insurance coverage is paramount. In Louisiana, understanding the nuances of uninsured/underinsured motorist (UM) coverage in an automobile insurance policy is crucial.  Louisiana law mandates that drivers have UM coverage, but the specific types of coverage can sometimes be confusing.  Two key distinctions are “Economic-only UM coverage” and “Bodily injury UM coverage”.  Unfortunately, most insurance agents do not do a good job explaining the difference between the two.  Knowing the differences can be vital in ensuring that you have the right coverage in the event of an accident with an uninsured or underinsured motorist so you can have a full recovery for both your bodily injuries and your economic losses such as medical expenses and lost wages.  Let’s delve deeper into the intricacies of these coverages to shed light on their importance and implications.

“Economic Only” Uninsured/Underinsured Motorist Coverage:

In Louisiana, economic only uninsured/underinsured motorist coverage focuses on compensating you only for your “economic losses” such as medical expenses, lost wages, and other related expenses resulting from an accident with an uninsured or underinsured driver.  It’s important to note that economic only UM does not include coverage for “non-economic damages” such as bodily injuries, physical pain and suffering, mental anguish, mental pain and suffering, scarring, permanent disability, loss of services, loss of society, and loss of enjoyment of life for an automobile accident with an uninsured or underinsured driver.  

In the context of Louisiana law, economic only UM coverage is designed to offer a safety net only for economic hardship arising from an accident.  It’s crucial to be aware that it doesn’t provide you with any coverage for bodily injury.  

Bodily Injury Uninsured/Underinsured Motorist Coverage:

On the other hand, bodily injury uninsured/underinsured motorist coverage in Louisiana extends beyond economic losses and actually includes coverage for both your economic losses (such as medical bills,  lost wages and other provable economic losses) and non-economic damages (such as bodily injury, physical pain and suffering, emotional distress, mental pain and suffering, loss of society, scarring, permanent disability, loss of service, loss of enjoyment of life, and other intangible losses) resulting from an accident with an uninsured or underinsured motorist. This broader scope of coverage aims to provide a lot more comprehensive protection to you.

Bodily injury uninsured/underinsured motorist coverage accounts for the physical and emotional toll of an accident, ensuring that you receive full compensation for your injuries and related “non-economic losses” as well as their “economic” losses. This type of coverage is particularly crucial in cases where the injuries sustained have a long-term impact on your quality of life and well-being. This coverage ensures that you are not left shouldering the burden of both economic and non-economic damages if the other party’s insurance is insufficient.

In Louisiana, bodily injury UM coverage is instrumental in safeguarding your physical and emotional well-being in the aftermath of an accident. It serves as a critical layer of protection, especially when the accident results in significant personal injury, trauma, or long-term emotional distress. Having this coverage can provide much-needed peace of mind, knowing that you are adequately protected from various potential consequences of an accident.

Understanding The Importance Of Comprehensive Coverage 

On the one hand, economic-only uninsured/underinsured motorist coverage offers limited protection for only tangible financial losses (such as medical expenses and lost wages), while on the other hand “bodily injury uninsured/underinsured motorist coverage” provides compensation for both economic losses and non-economic losses such as your bodily injuries and damages.  It is crucial to understand the differences between these two types of coverage, especially when considering the potential consequences of being involved in an accident with an uninsured or underinsured driver.

Thus, in the realm of Louisiana law, distinguishing between economic-only uninsured/underinsured motorist coverage and bodily injury uninsured/underinsured motorist coverage is paramount for ensuring adequate and comprehensive compensation in the event of an accident. By understanding the differences between these two types of coverage, you can clearly see that selecting bodily injury uninsured/underinsured motorist coverage is the best choice as it provides the most comprehensive protection to you because it provides coverage for both your “economic” losses and your “non-economic” losses such as bodily injuries.

If you’ve been injured in a car accident, our New Orleans personal injury lawyers can help you decide on the best next steps for your situation. Call Kiefer and Kiefer today.

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