What is auto insurance?
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
Auto insurance provides for liability, medical payments, uninsured/underinsured motorist, damage to your vehicle and other optional coverages to round out your package of protection.
- Damage to your vehicle covers collision, fire, theft, flood, windstorm and several other perils.
- Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
- Medical coverage pays for the cost of treating injuries for you and your family members. It also covers others in your car, but they may be covered by your liability as well if the accident was your fault.
- Uninsured/Underinsured motorist coverage provides payment for injuries to you and occupants of your car if a negligent driver doesn't carry auto insurance or does have auto insurance, but the limits are lower than your UM limits.
If you're financing or leasing a car, your lender may have specific requirements regarding coverage carried.
Auto policies are for six months or a year. Installment options are available. Your insurance company will notify you by mail when it's time to renew the policy and to pay your premium. You can also pay by monthly EFT or pay on the company's website.
Why do you need auto insurance?
It's really all about protecting yourself financially.
- If you're in an accident or your car is stolen, it costs money, often a lot of money, to fix or replace it.
- If you or any passengers are injured in an accident, medical costs can be extremely expensive.
- If you or your car is responsible for damage or injury to others, you may be sued for much more than you're worth.
- Not only is having insurance a prudent financial decision, Tennessee is a mandatory insurance state.
Questions to ask your agent
As an independent agency we are advocates for finding auto insurance that meets your specific needs. Here are a few things to consider as you prepare for the discussion:
- How much can you afford to pay if you get in an accident? (To keep premiums low you may want to have a higher deductible.)
- What is the insurance company's reputation, level of service and ability to pay claims?
- What discounts are available? (Ask about good driver, multiple policy, low mileage and good student discounts.)
- What's the procedure for filing and settling a claim? (Ask who to call and what happens after you file a claim.)