Auto & Recreational Insurance Frequently Asked Questions

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Auto Insurance FAQ:

  • A: Auto, RV, Motorcycle, Boat, Medicare plans

  • A: 15/30/25. By law, this is the least amount required by the Louisiana statutory compliance law for personal automobile liability insurance for Louisiana residents. However, simply being within the minimal limits as required by law does not necessarily provide adequate protection. Remember, if the accident is of such severity that the bodily injury to others and the damage to their property (usually their automobile) goes beyond your limits of coverage to pay for the damages, that you are responsible for all damages beyond your coverage limits. More coverage to better protect you is available and is generally of little increase in premium to raise the limits of your policy’s protection to you.

  • A: If you are at fault in an accident your policy pays, up to $15,000 per person for their injuries, $30,000 per accident (total) and up to $25,000 for damage to their vehicle. This is called a “split limit” of coverage. As you can see each number i.e., “15” stands for thousands of dollars. The first two figures on a split limit policy apply to “Bodily injury” you do to someone else (you are not personally covered for your bodily injuries by your liability coverage; this is to cover others you are responsible for within the terms and meaning of the policy language) with the first figure representing the maximum in thousands per person and the second figure the maximum for ALL injuries in the accident. Thus, a minimal policy will pay up to, but not more than $15,000 for one person’s injuries; if two, or more, people are injured the policy will pay up to, but not more than $30,000 for two or more persons you are liable for. You can readily see that multiple injuries could easily go beyond the ability of a minimal policy to adequately cover, or pay for. The last figure, “25” is the amount in thousands to cover property (generally another automobile, but damage to any kind of property is included, such as a fence, a home, etc.) Although $25,000 may seem like a lot of money, new automobiles today are often well above this amount, and luxury cars and trucks often go well over $40,000. Fortunately, much more coverage could be available at a very affordable increase in premium.

  • A: Medical Payments pays a monetary amount to help cover medical costs you and/or your passengers incur in an accident. Even if you have hospitalization coverage through another plan, Medical Payments coverage on your automobile policy could provide low-cost valuable protection to supplement your other coverage. Medical Payments coverage covers you (and your household family members) without regard to fault when injured in your automobile. This coverage extends or “follows” you if you are a passenger in another personal vehicle besides the ones you own, as a pedestrian if you are struck by a car and can even be applied to funeral expenses if you or a family member die as result of an automobile accident, if the policy limit on the medical payments was not exhausted beforehand.

  • A: UM is short for Uninsured Motorists, and it covers you/your vehicle in the instance you are in a not-at-fault accident with an un/under-insured motorist. Many folks carry the minimum limits of Liability (15/30/25) but sometimes that’s not enough to take care of your injuries and/or damage. In that instance your UM coverage would kick in. Uninsured Motorists (UM) covers bodily injury from an uninsured motorist (UMBI). However, this coverage can be expanded to include coverage on your vehicle (this is called: Uninsured Motorist Property Damage, or UMPD) if you do not carry collision coverage and it carries a deductible of $250. This additional part of Uninsured Motorists coverage is not automatic with your Uninsured Motorist Bodily Injury protection and must be selected if want it. However, if you have collision coverage on your vehicle then you are not eligible for UMPD as the damages to your vehicle are already covered by your policy.

  • A: Med Pay is optional whether or not you have UM coverage. If you have UMBI, which only covers your injuries if the other driver was at fault AND uninsured, you would still need Medical Payments on your auto policy if you were at fault in an accident to cover any injuries to yourself under the auto policy. Your medical payments coverage, if you have it, would be the primary coverage and would pay the first dollar amounts for your injuries. This way you might avoid having to claim under your health insurance plan and thereby avoid any deductibles or co-payments up the limit you’ve selected for your auto Medical Payments coverage. There is no deductible for Medical Payments and in a minor accident this could mean no expense for you up to the limit of the coverage. Most policies offer as little as $1000 of coverage, or as much as $10,000 or more, depending on the company. It is generally little additional premium to increase this coverage to a more realistic amount of $5000 or more.

  • A: UM and Med Pay are optional coverages. One of the reasons you might have them is to help with your health insurance deductible(s) and/or co-pay, loss of wages and other expenses while injured, etc. If you are injured in an auto accident, you will find the Medical Payments and Uninsured Motorists of benefit beyond your health insurance, not only for yourself, but for any passengers in your vehicle.

  • A: Comprehensive coverage covers theft of your vehicle, vandalism, glass breakage, flood, and fire. Collision coverage covers your vehicle in event you collide with something (usually another vehicle), hence the name, “Collision”.

  • A: If you have liability only, your vehicle damages are not covered in an at-fault accident. You must have Collision coverage in order for your car to be covered in an At-Fault accident.

  • A: A good rule of thumb in this instance is to base your decision on the value of your car less your deductible. If your vehicle still has a high retail/trade-in value it is wise to continue carrying Comp & Collision. You can check this at www.kbb.com. If you decide not to continue carrying Comprehensive and/or Collision coverage, at the very least you should add Uninsured Motorist coverage. This won’t help if you’re at fault, but it will in the instance you are involved in an accident with an un/under-insured vehicle. Without Collision coverage it is good to have Uninsured Motorists Bodily Injury and Property Damage coverage (UMBIPD) in case the other driver is at fault, but uninsured. This way, your car would be covered for the damage with a deductible of $250, as well as any injuries caused by the uninsured driver.

  • A: A boat, RV, or utility trailer for private use is covered for purposes of liability only while in tow by your automobile, as the liability coverage is extended to a trailer while in transit and properly attached. For example, if the trailer were to come loose while in tow resulting damage to another vehicle then damages would be paid under the liability portion of the auto policy for the damage done to that other vehicle. However, there is no coverage for damage to the in-tow trailers and their cargo under this coverage. It would be necessary to buy a policy for the boat, RV, and trailer to have them covered for physical damage coverage on these items. Also, although some homeowner policies do provide liability coverage for the use of watercraft, this coverage is limited as to the amount of liability coverage and only to boats propelled by a limited amount of horsepower. There could also be limitations on the coverage of liability in the homeowner policy that would be covered much more comprehensively under a boat policy and with higher limits available. Boat insurance, especially liability coverage on a boat, is relatively inexpensive and should be seriously considered.

  • A: Based on your particular policy, there may be a limited amount of coverage in the instance you are in an accident while pulling the boat/rv/utility trailer/etc. Remember liability covers the other person and their property. If you are at fault in an accident or involved in a not-at-fault accident with an un/under-insured person, your recreational items may not be fully covered. It is important to secure coverage for the boat/trailer for this contingency.

  • A: Homeowner policies may have limited coverage under the contents portion of the policy for your recreational items if stolen or if damaged under a covered loss. The liability part of your homeowner policy may offer protection if you injure someone while out enjoying your recreational vehicles and/or watercraft. However, homeowner policies have limitations that could leave you responsible for a significant portion of the loss. Placing coverage on your recreational vehicles is relatively inexpensive and provides better protection.

  • A: ATV insurance covers liability, and if elected, comprehensive and collision coverage similar to an auto or motorcycle policy. Coverage on these items is inexpensive and bodily injury to others is your greatest risk. It is best to cover your ATV, boat and personal watercraft under their own policy.

  • A: Again, your auto policy may offer limited coverage on these trailers while in tow, however that does not cover in case of fire, theft, hail and other losses incurred while parked. It is always best to find specific coverage for these items.

Recreational Vehicle Insurance FAQ:

  • A: In the same way an automobile or motorcycle must be insured under a finance agreement, most loan organizations require insurance to protect their interest in the case of an accident or other type of loss. This gives you protection for the loan and most importantly, your liability in an accident to others for bodily injury.

  • A: In most instances, yes, there is a limited amount of contents provision on an RV policy. It is always inexpensive to add or increase this coverage on your policy.

  • A: Homeowner insurance may offer limited contents coverage in this instance. However, contents coverage is available on an RV policy at very low rates and is highly recommended for better coverage and quick claim settlement.

While circumstances of loss or injury may differ, it is always best to have your recreational items covered under their own, unique policy and not assume you’re covered when, in all actuality, you may not be.

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