The New Law
Louisiana lawmakers are penalizing uninsured drivers by an additional $53 million for failing to maintain minimal automobile liability insurance policy as required by law. The penalties for not carrying proof of insurance in a vehicle requires a minimum $75 fine in addition to other fines and penalties. The increased penalties are expected to raise an additional $53 million dollars. The law will go into effect July 1, 2014.
Although the new law may compel some uninsured drivers to carry at least minimal automobile liability policies, most Louisiana Uninsured Motorist Insurance Lawyers think it would be foolish for insured drivers to waive Uninsured Motorist Coverage and Underinsured Motorist Coverage. The cost of Uninsured Motorist Coverage is nominal compared to the cost of the total auto liability policy especially considering the benefit. An injured party will benefit from Uninsured Motorist coverage when he or she needs to collect injury benefits from the at fault uninsured/underinsured driver. Uninsured Motorist Coverage automatically comes with a Louisiana Automobile Liability Policy unless it is waived through a property completed Louisiana Commissioner of Insurance Uninsured/Underinsured Motorist Bodily Injury Coverage Form 8089.
Many automobile liability insurance applicants are now electing to purchase automobile liability insurance online. This may be a BIG MISTAKE! It is difficult to make certain he or she is securing the correct liability coverage and to make certain that he or she is securing Uninsured Motorist Coverage. Some liability insurers are generating and prefilling the Form 8089 online and having their online applicants sign Form 8089’s electronically. What may purport to be a correctly executed Form 8089 MAY NOT BE a validly completed form. A validly completed form requires, among other things, that the form 8089 be initialed. If the online liability insurer prefills Form 8089 with the applicant’s initials, the applicant options to select or not select the desired coverage is arguably limited by preventing the applicant from initialing the alternative choices (selecting lower limits; doing nothing at all; waiving coverage or selecting economic only coverage).