Acquiring Auto Insurance for State Laws Compliance

Auto Insurance in TennesseeA car can be a significant investment that comes with many costs when taking into consideration initial purchase, operation, and maintenance. Auto insurance is a large part of the cost of owning a vehicle for most car owners since state laws require an insurance policy be purchased and maintained while operating the vehicle. State laws vary; however, most states require you carry a minimum amount of auto insurance.

The auto insurance policy covers the cost of injuries or damage in the event of an accident. Your policy covers you, family members whose names appear on the policy, and any other person who will drive the car. Regardless of where you live, there are common types of auto insurance coverage, such as:

Liability Insurance

Liability insurance pays for injuries and damage to others during accidents. Bodily injury liability covers medical expense, while property damage liability covers repair and replacement costs for damaged property.

Liability coverage is usually in a representation of three numbers. The first covers bodily injury per person, the second, bodily injury per accident, and the third covers property damage per accident. Keep in mind that insurance policies do have their limits, which means that you are personally responsible for any overage costs.

Medical Payments or Personal Injury Protection

While liability insurance covers other people, for your own medical costs, consider acquiring medical payments coverage or personal injury protection (PIP). PIP covers both medical services and lost wages.

Uninsured Motorist vs. Underinsured Motorist Coverage

Uninsured motorist coverage covers your medical expenses if an uninsured driver causes an accident. Underinsured motorist coverage pays out your medical expenses if the other driver’s liability insurance can’t pay all your medical expenses. 2ndchanceinsurance.com notes that following an uninsured car accident in Tennessee, the DMV requires an SR-22 form — an insurance certificate showing proof of financial responsibility — to reinstate the driver’s driving privileges.

Uninsured motorist property damage (UMPD) covers your car repair or repayment costs if an uninsured driver causes an accident.

Regardless of the insurance coverage you choose, it is wise to shop around for the best rates. An insurance policy can have varying rates from one company to another. Compare the offers and land yourself the auto insurance deal of your life.