Car Insurance Basics

Car Insurance Basics

Use this guide to understand your coverage, deductibles, and limits and how they work for you.

 

YOUR  INSURANCE COVERAGE OPTIONS*

All policies include liability coverage, which protects you financially if you’re responsible for an accident. This is required under Tennessee law. You can also buy optional coverages to protect your investment in your car, pay your medical bills, or even help if your car breaks down.

Here is a list of coverages and a brief explanation of what they do.

  • LIABILITY – The insurance company will pay if you injure someones or damage someone’s property in an accident. When you buy liability, you choose a limit – the maximum amount the insurer will pay for a liability claim. Tennessee requires your insurance coverage to have a minimum liability coverage limit of $25,000 per person for bodily injury, $50,000 per occurrence for bodily injury, and $15,000 for property damage.
  • COLLISION – The insurer pays to repair damage to your car when you hit, or are hit by, another vehicle or object, regardless of who is at fault.
  • COMPREHENSIVE – The insurer pays to repair damage to your car that’s caused by something other than a collision, such as fire, theft, vandalism, hail or flooding. The insurer will also pay for damage to your vehicle caused by hitting an animal.

          When you buy collision and comprehensive, you choose a deductible – typically $250 or $500. This is the amount you pay to the repair shop. The insurer pays the rest.

  • UNINSURED MOTORIST PROPERTY DAMAGE – The insurer pays to repair damage to your vehicle caused by a driver who does not have insurance.
  • UNINSURED/UNDERINSURED MOTORIST BODILY INJURY – The insured pays for your medical expenses, lost wages, and other damages when you’re hurt in an accident caused by a driver who has insufficient or no insurance.
  • MEDICAL PAYMENTS (MEDPAY) – The insurer pays for the cost of reasonable and necessary medical care you get as a result of an accident, regardless of who’s at fault.
  • RENTAL REIMBURSEMENT – The insurer pats for your rental car while your car is being repaired as result of a comprehensive or collision claim.
  • ROADSIDE ASSISTANCE – The insurer pays for repairs or towing when your vehicle breaks down due to mechanical failure or electrical issues, a dead battery, or a flat tire; you’re locked out of your car; your vehicle runs out of gas, or your vehicle gets stuck in the snow or mud.

 

 

 

* Coverage is subject to the policy terms and conditions, and availability varies by state. See your policy and declarations page for more details about your coverages.