Auto Insurance Coverage
In Louisiana, all drivers of automobile must carry at least 10,000/20,000/10,000 liability insurance coverage on their vehicles. This insurance covers damages to individuals and property that result from an automobile accident. The three above numbers indicate the maximum sums recoverable from an insurer. The first sum is the maximum coverage for one individual injured. The second number represents the maximum coverage for all injuries sustained in the accident. The last number represents the maximum coverage for property.
Insurance companies have a duty to act in good faith in resolving claims made by the individuals they insure. The failure of an insurance company to act in good faith in settling claims made by the insured can give rise to the imposition of penalties. La.R.S. 22:1220. In addition, insurance companies also have a good faith duty to settle a claim within policy limits and avoid subjecting their insured to excess judgments.
Louisiana law requires all insurance companies offer uninsured/under-insured motorist coverage (commonly referred to as UM coverage). Uninsured motorist coverage is applied if the vehicle at-fault is uninsured or has insufficient insurance coverage.