MOST IMPORTANT INSURANCE COVERAGE FOR YOU TO CARRY ON YOUR CAR INSURANCE POLICY

For drivers in the Nashville area, having a car insurance policy is mandatory. Under Tennessee state law, any driver caught driving without an insurance policy could face serious consequences, such as a fine or revocation/ suspension of driving privileges or, in rare cases, even jail times.

However, under Tennessee state law, carrying a minimum liability coverage in your policy is required, and other coverages are optional. When signing up for your car insurance policy, you must understand what coverages are most essential for you to have, apart from the mandatory minimum liability. Continue reading this article and learn my take on this issue.      

There different kinds of coverage you can get in your policy; such as 

• Liability Coverage, 

• Property Damage Coverage, 

• Uninsured Motorist Insurance, 

• Underinsured Motorist Insurance, 

• Medical Payments Coverage Insurance,

• Collision Insurance, 

• Comprehensive Insurance,  

• GAP Insurance,

• Towing Insurance, 

• Rental Car Insurance

In most states the Liability coverage and Property damage coverage are mandatory. So, there is no problem there. But most people get confused when it comes to the other optional coverages. Below is my take on what are the most important coverages you should consider having in your policy.

Uninsured Motorist Insurance/ Underinsured Motorist Insurance coverage:

The most important coverage for you to have on your policy is the uninsured motorist insurance (UM) and the underinsured motorist insurance (UMI) coverage. Usually, these two coverages come together. This is an optional coverage, and most states allow you to opt-out of this coverage. 

But you must be very careful before doing that. Despite the regulations, the reality is that many drivers do not have any liability coverage. And those who do often choose to carry the minimum liability coverage to save money, which is $25,000 per person, $50,000 per accident, and $15,000 for property damage per accident in the state of Tennessee.

In either case, the uninsured and underinsured motorist coverage will take care of you.
That means when you have UM/UIM coverage, it will step in and take care of you if you were hit by an underinsured driver or even if you get hit by a person who doesn't have any coverage at all.

Without the UM/UIM coverage, persons with minimum limit insurance can get away by lawful means by paying a fraction of the amount you need, and there's nothing else that can be done. So, it is highly recommended that you get the UM/UIM coverage and protect yourself and your family.

Medical Payments Coverage:

Another essential coverage that I would like to recommend here is the Medicaid Coverage or Medical Payments Coverage. This is another optional coverage, and it's completely no-fault insurance coverage.

Medical expenses can be high, and without the medical coverage, you will be paying the medical bills out of your pocket. This is because even in cases where you have a claim against the at-fault insurance company, they will not pay until the end of the case or until the end of your medical treatment. So, while your larger medical service providers are aware of the process and will wait, there will be some small bills from service providers such as radiologists or ER physicians that you would be required to take care of immediately. With medical payments coverage, as soon as you get a bill, it can be issued to the medical payments carrier. This way you don't have to wait to pay the bills. 

Comprehensive and Collision Coverage:

Apart from the above two, some of the other coverages you need to keep a close eye on are the comprehensive and collision coverage. Comprehensive coverage will help you replace or repair your vehicle if your car gets stolen or damaged in an incident other than a crash. Comprehensive coverage is more critical for people who are looking to lease or rent your vehicle. Whereas collision coverage helps you repair your vehicle in case of an accident that damages your vehicle in a collision with another one or any other object.

As for the amount of coverage, I think you should consider your geographical location for that. If you live in a place or big metropolitan area and people have very expensive cars, you may want to have more coverage. Though if you live in a place where most people drive standard vehicles, you may not need to have $50,000 in property damage coverage. For example, in a quiet suburban area, coverage of $10,000 will be enough for you. 

Gap Insurance:

Gap insurance is another coverage that is incredibly important to consider carefully. In case a car is totaled in an accident, or is stolen, the comprehensive coverage will pay you the actual cash value of the vehicle when it was totaled or stolen. As the value of cars deprecate very quickly, for people who got the car on lease or long-term loan, the insurance amount may not cover what you still owe on the vehicle. Here the gap insurance will come in and cover the difference. But keep in mind that gap insurance is not for you if your comprehensive and collision coverage is enough to cover your bills.

Final Thoughts:

So, here you go! These are the coverages that I think are most important for you to have on your policy. There are, of course, other coverages available, for example, rental reimbursement coverage or tow coverage, but they're going to be case-specific and will depend upon your personal preference. 

Find out if you have these coverages, and if you don't know or would like a coverage review, contact our law firm. We always do free consultations and coverage reviews. We can be reached at 615-551-HURT, or online at Nashville Injury Law on Instagram, and Facebook.