Underinsured Motorist

[PBL]

What is the name of your state? Louisiana
I have settled with tortfeasor insurance for full policy limit, which was less than what was demanded and I have signed their release form. I was also made aware by tortfeasor insurance that if I still felt as though I was not paid in full as a whole for pain and suffering, that I could file a UM claim with my insurance company and that I have a period of two years to make that claim. I do have a UM policy and med pay policy with my insurance co.
My insurance company agreed to waive my med pay subgrogation in lieu of a UM claim in writing to me and tortfeasor insurance company. I was told that this letter by my insurance company would not stand up in court and was not ethical because of the way it was worded to the tortfeasors insurance company and that I have a right to file a UM claim. Med pay subrogation was waived.

So can I file a UM claim for full policy amount or just the part that I was not paid for, which was listed on my demand letter? What would be the right way to do this? Do I file for full policy limited or a lessor amount. My insurance company is not freely giving out any information pertaining to my policy/filing. In other words, he is not letting me know that I can file a UM claim. He also did not inform me that I could have my med pay subgrogation waived. I had to learn this from the tortfeasors' insurance company.
Also, can you tell me if Louisiana has a stacking law for UM claims?
I'm a little confussed with filing a UM claim against my insurance company, because I don't want to get dropped.

I also checked with my insurance state office and was told that the accident would not be counted against me because I was not at fault (I was rear-ended on state hwy. while at a complete stop)

Could you give me a little insite as to what would be the right way and procedure in my case?
I would like to file a UM claim because I feel as though I have not been paid in whole for my pain and suffering. What are Louisiana laws for filing a UM claim?

Any information would be greatly appreciated. Thank you in advance for your time and effort in this matter.
Have a nice day!

 

[ecmst12]

What are the policy limits for your underinsured motorist policy? How much did you get from the other driver's insurance?

 

[PBL]

My policy limits are $10,000 under uninsured motorist

Other driver's insurance policy $10,000 - (policy limit $10,000) less than what was demanded.

 

[efflandt]

"Demanded" is ambiguous. Were you at least reimbursed for actual property loss and medical expenses or more?

 

[ecmst12]

Underinsured motorist coverage will only pay you up to the difference between your limits under that coverage, and the other driver's policy limits. So you can't get anything from it in this case. Underinsured motorist will NEVER help you if you only have the state minimum coverage on it.

 

[moburkes]

Sorry, OP. The above posters are correct. There is no such thing as stacked UM coverage in LA. And, since you had the state minimum coverage for liability, you had the state minimum coverage for underinsured motorist. And, since there is no such thing, technically, as underinsured motorist coverage, when your liability is at the state minimum, you are out of luck.

So, I'm not sure where you're coming from when you feel that you can sue your insurance company for bad faith. There's no coverage. You didn't buy high enough coverage to have a difference between what you bought and what the at fault party bought.

 

[PBL]

Underinsured motorist coverage will only pay you up to the difference between your limits under that coverage, and the other driver's policy limits. So you can't get anything from it in this case. Underinsured motorist will NEVER help you if you only have the state minimum coverage on it.

So what you are saying is that if my policy only has a $10,000 limit and the other person only has a $10,000 limit, I can't file a UM claim with my carrier to make up the difference of what was filed with tortfeasor. I demanded a settlement of 15,000, but could only receive $10,000 (policy limit), and was told that I could file with my carrier to make-up the difference. I just want to know if I can do that or not and is it legal.

 

[moburkes]

So what you are saying is that if my policy only has a $10,000 limit and the other person only has a $10,000 limit, I can't file a UM claim with my carrier to make up the difference of what was filed with tortfeasor. I demanded a settlement of 15,000, but could only receive $10,000 (policy limit), and was told that I could file with my carrier to make-up the difference. I just want to know if I can do that or not and is it legal.

Yes. Underinsured motorist will pay up to the difference between the coverages of the 2 policies. So:

$10,000 per person YOUR policy underinsured motorist coverage MINUS
$10,000 per person the at fault party's liability coverage
============
$0 difference between the 2 policies. This is the maximum amount of coverage available under your policy for underinsured motorist coverage.

There are a few states in which the state does not require you to subtract the coverage that was paid out from the other party's liability, but I'm pretty sure that LA isn't one of them. I can check tomorrow, though, when I get to work.

 

[PBL]

Sorry, OP. The above posters are correct. There is no such thing as stacked UM coverage in LA. And, since you had the state minimum coverage for liability, you had the state minimum coverage for underinsured motorist. And, since there is no such thing, technically, as underinsured motorist coverage, when your liability is at the state minimum, you are out of luck.

So, I'm not sure where you're coming from when you feel that you can sue your insurance company for bad faith. There's no coverage. You didn't buy high enough coverage to have a difference between what you bought and what the at fault party bought.

I demanded $15,000 for pain and suffering from the at fault carrier and received $10,000 and was told that I could file a UM claim with my carrer to receive the difference.
I'm confused
My policy coverages are: Liability and collision (full coverage)
Bodily injury: $10,000 each person/$20,000 each accident
Property damage: $10,000 each accident
Underinsured motorist $10,000 each person/$20,000 each accident
Medical: $5,000
Collision: $200 deductible
Comprehensive $50 deductible
Death Indemnity: $10,000 each accident
Disability: BASIC

According to my policy information listed above, do I have the right to file a UM claim with my carrier???
Filing a UM claim with my carrier is considered bad faith??

 

[moburkes]

You posted this after I already posted a response.

 

[alnorth]

PBL, the other insurance company may have assumed your UM limits were higher than state minimum. Having state minimum underinsured is pretty much useless in a non-stacking state. (state minimum uninsured is still worth something when the other driver has no insurance, but state minimum underinsured is not going to pay if the other party has state minimum)

Look at it another way. When you decided to only buy 10k uninsured/underinsured, you essentially agreed that the most youll ever need is 10k. If the other party had no insurance or less than 10k, your insurance company would pay the difference. Your only alternative would be to sue the driver, win, get the other driver's policy limit, and then force the other driver to make up the difference personally with a judgement. Having signed a settlement, your options at this point may be zilch.

 

[PBL]

PBL, the other insurance company may have assumed your UM limits were higher than state minimum. Having state minimum underinsured is pretty much useless in a non-stacking state. (state minimum uninsured is still worth something when the other driver has no insurance, but state minimum underinsured is not going to pay if the other party has state minimum)

Look at it another way. When you decided to only buy 10k uninsured/underinsured, you essentially agreed that the most youll ever need is 10k. If the other party had no insurance or less than 10k, your insurance company would pay the difference. Your only alternative would be to sue the driver, win, get the other driver's policy limit, and then force the other driver to make up the difference personally with a judgement. Having signed a settlement, your options at this point may be zilch.

The laws are so confusing when it comes to insurance. I'm not one to sue anyone personally. I handled the case on my own, and I think that I did fairly well considering that my med pay was not deducted from my award amount.

Right now, what's the point in having this policy if I can't use it. I guess I can drop the policy are either increase my limits. Right now increasing my limits would not be worth it with an older vehicle (9-yrs old). Maybe later on I can do that when I purchase a new vehicle.
Thank you so kindly for the information on UM policy. Have a nice day!

 

[moburkes]

You CAN use your policy. You DID use your policy. You just don't understand what each coverage does. When you say that increasing your limits doesn't make sense, you don't understand the coverage. Your vehicle is 9 year old, so, maybe comprehensive and collision don't make sense. However, since anybody can be injured in a car accident, the age of the vehicle has nothing to do with how much medical coverage you have.

 

[alnorth]

Exactly, if your car is old then you may not need comprehensive and collision, but you really should think about increasing your liability coverage. Not only would a higher UM have helped you, but you yourself have just proven how risky it is to be driving around with only state minimums. This accident wasnt your fault, but what if the next one is your fault? What if you seriously injure, cripple, and/or kill the people in the other car? You'd be bankrupt, and higher liability limits are so cheap to buy! Getting a pretty healthy amount of coverage ($300,000) might cost you.... I dont know, maybe 10 or 15 more bucks a month, give or take on your situation? The expensive part of the policy is comprehensive and collision, but the liability is cheap!