Home > FAQ > Optional Insurance Coverage

Optional Insurance Coverage

Medical payments coverage pays for medical expenses for a designated period of time following the accident, up to your policy's dollar limits, which also includes funeral expenses. Payments are made regardless of who is to blame for the accident. Medical payments cover you, your family members and other passengers in your car.

Uninsured / Underinsured motorist coverage pays benefits to you if your car is hit by another driver who isn't insured or has too little insurance to pay for the full amount of your injuries. Any bodily injury you or an occupant of your vehicle suffers due to an accident caused by another driver is covered under this policy. Hit-and-run drivers may be classified as uninsured motorists if there is a disinterested witness to the accident.

You may choose to purchase uninsured motorist economic-only coverage. This coverage is the same as uninsured motorist coverage, except that it covers only the actual costs of injuries to you and the occupants of your vehicle. Pain and suffering are not included under this type of coverage.

Uninsured / Underinsured motorist property damage coverage provides for repairs to your vehicle if you are in an accident with an uninsured driver. A $250 deductible applies under this coverage. Your recovery would be limited to $10,000 or the actual cash value of the vehicle, the lesser of the two. If your policy includes collision insurance, this coverage is not available.

Towing and labor coverage will pay for towing costs and labor costs when your car is disabled. Most automobile policies limit this coverage to $25 per tow, and some companies will not write towing and labor coverage for older vehicles.

Comprehensive coverage pays for specified damages to your vehicle, such as those resulting from falling objects, fire, explosion, vandalism, theft or additional named causes other than collision. This is subject to any exclusions or limitations specified by your policy. The deductible, the amount you pay out of your pocket for each claim, can range from $0 - $250.

Collision coverage pays for the damage to your car that results from an accident. You can collect under your own collision coverage, whether or not you were at fault. Collision coverage is always sold with a deductible.

Many people drop their collision or comprehensive coverage when their car(s) are about five years old, because they may be worth only a few thousand dollars. If you can borrow money to buy your car, the bank or other lender may require that you carry comprehensive and collision insurance until your car is paid for.

The Louisiana Automobile Insurance Plan allows companies to write auto liability insurance for persons who have been turned down when they tried to get coverage through the normal channels. This assures that everyone licensed to drive in this state has insurance available to them.

Rental reimbursement provides coverage for a rental car in the event that your vehicle is damaged by a covered hazard or accident.

All information courtesy of: Louisiana Department of Insurance's Publication - Consumer's Guide to Auto Insurance