Tennessee Auto Insurance Coverage: Optional Protection

Tennessee auto insurance coverage buyers must have third party liability protection in place to comply with state law. As long as a person has at least this level of protection in place, he or she is staying legal but there are other types of auto insurance coverage available to consumers and these are worth considering.

Uninsured and Underinsured Motorist Coverage

Both of these types of coverage protect the policyholder, his or her family members and the passengers in the vehicle. Uninsured motorist insurance is used to pay for injuries and damages when the at-fault driver doesn’t have any coverage in place. It also comes into play when the at-fault driver cannot be identified, such as when the accident was a hit and run.

Underinsured motorist coverage is used to increase the level of protection available when the at-fault driver has some coverage but it is not sufficient to fully pay for the damages caused in an accident. The at-fault driver’s coverage is used first and once the policy limit has been reached, the underinsured motorist protection is used to pay the balance owing (up to its policy limit).

Collision and Comprehensive Coverage

Collision and comprehensive coverage protect the driver’s vehicle from physical damage. The collision coverage pays out when the damage is caused by striking another vehicle or an inanimate object. Comprehensive coverage pays for damages caused by fire, theft, severe weather or flooding. It also pays out when the car is stolen and not recovered.