Who Has The Cheapest Auto Insurance In Tennessee
Who Has The Cheapest Auto Insurance In Tennessee? AmeriAgency
Besides protecting you financially, car insurance is a social responsibility. Driving without insurance or the ability to pay for the damages you cause in an accident puts others at financial risk.
All states except New Hampshire require car owners to prove they have the financial ability to cover liability costs if they cause an accident, and most require they do so by carrying auto insurance. New Hampshire requires drivers to prove financial responsibility after an accident.
An auto insurance policy contains six main types of coverage. Depending on where you live, some are required and some are optional.
Car insurance is comprised of the following coverages:
- Bodily injury liability
- Property damage liability
- Medical payments (MedPay) or Personal Injury Protection (PIP)
- Uninsured/Underinsured motorists coverage (UM/UIM)
- Extras, like roadside assistance
When people talk about having “full coverage” they generally mean having liability, collision and comprehensive.
Let’s look at each coverage type and help you figure out if you need them.
Remember – Who Has The Cheapest Auto Insurance In Tennessee? AmeriAgency
Liability coverage pays for the damage you do to others. It’s written as three numbers, such as 25/50/25 That translates to $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident and $25,000 in property-damage coverage per accident.
It also pays for your legal bills if you cause an accident.
Bodily-injury liability will pay for others’ medical bills and lost wages when an accident is your fault, except in “no-fault” states, where your own Personal Injury Protection (PIP) coverage would pay for your injuries.
Property-damage liability pays to repair or replace property that you destroy. This includes other cars or property, such as fences.
States have set minimum limits of car insurance you must buy, but you may find them woefully inadequate. If you cause a major accident you’ll quickly exhaust your limits – and be personally on the hook for the rest.
If you cause $65,000 worth of damage and have an insurance limit of $40,000, you’re responsible for the remaining $25,000 and could be sued for it.
Liability insurance has no deductible.
You can also buy Collision and comprehensive coverage to repair body damage to your vehicle.