In a decision handed down May 29, 2019, the Louisiana Fourth Circuit Court of Appeal affirmed a New Orleans district court’s decision to deny underinsured motorist coverage to a Uber driver injured in a car accident during the “pre-trip acceptance period,” meaning the Uber was available for hire but was not in the process of transporting a passenger.

Louisiana law requires underinsured motorist coverage as a default in all car insurance policies. Per statute, the insurance company must obtain a waiver and rejection of underinsured motorist coverage. Many policyholders are willing to waive underinsured motorist insurance for a lower premium, but the insurance company must obtain a waiver and rejection, or it may find itself on the hook for damages caused by underinsured motorists anyway.

The question in this case is whether Uber may waive underinsured motorist coverage, in essence leaving its drivers without underinsured motorist coverage during the pre-trip acceptance period. The district court and Fourth Circuit Court of Appeal found that the plain language of La. R.S. 45:201.6 and La. R.S. 22:1295(1)(a)(i)-(ii) clearly permits Uber to waive underinsured motorist coverage. The case is Lisa Jean v. James River Insurance Company, Docket No. 2019-CA-0041 in the court of appeal.