Information About
NASHVILLE AUTO
Articles
Auto Insurance-Guide to the Basics
When shopping for auto insurance in Nashville, you will find that there are many different types of coverage. In fact, the number of coverage options can become quite confusing, so it is important to educate yourself so you can make the best decision.
Liability coverage provides protection in the event that you are involved in an accident that causes injury or damage to another person or their property. The three types of liability coverage of bodily injury liability, property damage liability and uninsured/underinsured motorist coverage.
If you own a vehicle in Nashville, you are required by Tennessee law to carry at least a minimum amount of liability coverage on your vehicle. There are additional types of automobile insurance which you can purchase in order to provide increased levels of coverage; however, the State of Tennessee requires you to carry a minimum of $15,000 for liability of injury in an accident. You are also required to carry a minimum of $30,000 of coverage that applies to all kinds of injuries as well as $5,000 coverage for property damage which results form an accident.
If your vehicle is financed, the state will not require you to carry comprehensive and collision coverage on your vehicle; however, your lender typically will require it. Collision coverage will pay to replace or repair your vehicle it is damaged during an accident. Comprehensive automobile insurance will provide coverage for your vehicle against damage that results from events other than an auto accident, such as flood, fire, vandalism or theft.
You may also choose to purchase medical payments or personal injury protection; also known as PIP. This type of auto insurance will cover medical expenses that may not be covered by your health insurance or the health insurance of your passenger(s) if you are involved in an accident. This is an optional coverage; however, it can be beneficial in the event you become injured.
Remember that in order to drive legally in Tennessee you must obtain at least the minimum amount of insurance. Failure to do so can result in severe penalties.
