Auto Insurance Coverages

Auto Insurance Coverages

What is more important to you? Investment and wealth protection? Ensuring an immaculate auto body without ding or scratch? Medical protection for passengers or for you?

Affordable Insurance offers a variety of coverage plans. We will be sure to find the plan that fits your needs at the best available price. We have compiled a list of the main coverage options that come with most auto insurance policies. This will help explain what they are for and how they can be used to protect you and others. Please don’t hesitate to ask us for further clarification and other options.

Bodily Injury Liability

This is one of the most important coverage options that you should understand. The coverage will pay for any medical or legal expenses if you cause bodily injury to another person while driving your vehicle. With rising costs of medical care, the cost of physical therapy, and soaring legal representation fees, it is recommended that you choose a coverage that is higher than the minimum requirement of Tennessee. The minimum will only cover up to $25,000 each person, but no more than $50,000 total (also abbreviated as 25/50).

What would happen if you have those minimum limits and you ran into the back of a minivan and pushed them into the car ahead of them? What if each vehicle had at least two people in them? Would you feel comfortable that 25/50 is going to be enough for all four or more people considering most of the injured were transported to the hospital by ambulance?

Unfortunately, your insurance company is only obligated to pay up to your limit of coverage. You and any other owners of the vehicle will be responsible to pay out any differences. Don’t make the mistake of thinking that because you don’t own much, they can’t take much. They can. They can garnish your wages, take your tax refunds, and take any savings or investments that you have accumulated up to that point.

Other coverage limits are 50/100, 100/300, 250/500, 300/300, and 500/500. If you have home and auto together with the same company, you may also qualify for an “umbrella” liability, giving you an additional $1 million in addition to the liability on your auto and home insurance.

These are the type of discussions you should consider when choosing your options. If you have a decent driving history and at least six months of prior auto liability coverage up to the point you are ready to change, you would be surprised that the difference of doubling your protection is literally pocket change.

Property Damage Liability

This coverage will pay out for any damages you cause when driving. It covers personal vehicles and structures. Just like with the Bodily Injury, there isn’t much with the minimum limit of $25,000. That may be enough if you happen to only hit one older vehicle, but in the case of rear-ending the minivan and pushing them into another car, if they are newer vehicles and they are totaled, $25,000 may not be enough. You have options for $50,000, $100,000, and more in some cases.

Uninsured or Underinsured Motorist

Times are tough for just about everybody. What if someone had the choice of paying their car insurance coverage or his or her rent…then hit you. Do you think they would have the financial means to cover your medical expenses and damage? Don’t leave that to chance. Choose Uninsured and Under-Insured Motorists protection equal to your Bodily Injury and Property Damage limits. It covers hit-and-run injuries and damage as well.

Medical Payments

Covers medical and funeral expenses, up to your chosen limit, for yourself and your passengers for any injury or death related to your vehicle (accident, slamming door on hand, etc.) This is good to have if you don’t have health insurance, or if you happen to travel often with passengers.

Collision

This is physical damage protection for your car. It pays to replace or repair your car if you cause an accident, collide with another object (including curbs and potholes), or if your car has flipped or rolled. You will choose a deductible for this coverage and it will be the amount you are required to pay before your insurance pays the rest. A higher deductible will make your monthly insurance lower, but keep in mind this would be the amount you’d have to come up with all at once in a claim.

If you have a car loan, your lender will require you to carry this protection and list them as additional loss payee. This ensures they are entitled to all or a portion of the claim if the vehicle is totaled.

Note: If you owe more than what your car is worth, talk to us about Gap Insurance so that we can protect you financially from a car loss in which you will owe much more to the lender after your insurance company pays them for the value.

Your claim will be paid out according to the current book value minus depreciation. Please discuss with us other options if you feel your car is worth more than book value, has been maintained and is in pristine condition, and/or has customized features like paint, rims, or body kits.

We also have selections for classic and antique vehicles; please consult with us for your options. A standard personal auto policy will not adequately insure a classic car for body damage.

Comprehensive

Comprehensive is another part of physical damage protection for your vehicle. Often referred to as “Other Than Collision”. Events that are covered in this plan include fire, natural disasters, theft, vandalism, glass breakage, and damage caused by contact with animals. You would choose the deductible that you are responsible to pay in a claim; however, the cost to have a lower Comprehensive deductible often isn’t that big of a difference in price, particularly if you are a low-risk driver.

Lenders will also require this coverage. However, after your car loan is paid off, you can often choose to keep this coverage and decline Collision coverage so you are at least covered for things out of your control.

Rental Reimbursement

Sometimes referred to as “Loss of Use” this will pay up to the daily and aggregate limit you choose for a rental car if your vehicle cannot be driven as a result of an accident.

Towing

Covers the costs, up to a certain amount, for emergency towing when your automobile cannot be driven. Some companies offer a full roadside protection plan.

Accidental Death

This plan will pay a death benefit to your beneficiaries if you were to die as a result of an automobile accident in the covered vehicle.