Auto & Motorcycle insurance
What is auto and motorcycle insurance?
Auto and motorcycle insurance covers your car or motorcycle for liability and property damage exposures.
Auto & Motorcycle Coverages
On the road, driver’s must be sure they are covered. Car and motorcycle insurance can be very complex to first time drivers and very intimidating to drivers who are not very familiar with how car insurance works.
Who is covered
First, we need to discuss who exactly is covered on the insurance policy. Covered persons on the policy usually includes the named insured (person who holds the policy), spouse, other resident relatives, and any other person driving the vehicle with permission.
What is covered
Second, we need to discuss which vehicles are covered. Vehicles covered under a personal auto policy are usually owned, rented, or leased. A good example of this would be a temporary substitute vehicle.
The bare minimum coverage a driver can have is known as liability coverage. Liability coverage is state required by every driver in all states Allen & Smith represents (Louisiana, Mississippi, Alabama, Florida). Liability coverage will pay for any bodily injury or property damage to others in an accident in which you, the driver, are at fault for.
The next level of coverage that drivers can have is collision coverage. Collision coverage will pay for any damages to your car in the event of a collision with another vehicle or object. Collision coverage will also cover your vehicle in the event of an overturn.
The next level of coverage after collision coverage is comprehensive coverage. Comprehensive coverage covers most other causes of direct loss that is not a result of a collision. Examples of this could be the following:
- Theft or larceny
- Explosion or earthquake
- Hail, water, or flood
- Malicious mischief or vandalism
- Riot or civil commotion
- Contact with an animal
- Breakage of glass
When insurance agents ask if customers want “full coverage” they are referring to having all 3 coverages (liability, collision, and comprehensive coverage). Agents MUST ask, though, if the customer would like uninsured motorists coverage and the customer MUST sign if they deny adding uninsured motorists coverage to their policy.
Uninsured motorist coverage provides coverage when another driver is at fault and at the time of the accident, the driver either has no bodily injury liability coverage or has limits below the minimum limits required by state law in which the insured’s covered auto is principally garaged (state the driver resides in). At Allen & Smith, we recommend all drivers to have full coverage plus uninsured motorists coverage!
*It is important to note that personal property, like a briefcase, laptop, or sound system not permanently attached to the car, is not covered by a personal auto policy, but could be covered under a homeowners policy.