Insurance 101 in Jefferson City, TN

Guide to Choosing the Right Auto Insurance at Tarr Chevrolet

After you’ve found the right vehicle for you and your lifestyle, the next hurdle is finding auto insurance that gives you the coverage you need at a price you can afford. Insurance shopping can be a bit confusing. With countless options, varying levels of coverage, and a myriad of industry terms, it's easy to get lost. This guide simplifies the process, highlighting key aspects to consider when making your choice. From rates for new versus used vehicles to understanding different coverages, you'll be well-equipped to make an informed decision.

Rates of New vs. Used Vehicles

The age of your vehicle can greatly influence your insurance premium. New vehicles often attract higher premiums since their value is higher. But some models might also have advanced safety features, which can lead to insurance discounts. Used vehicles, on the other hand, typically have lower premiums as they have a reduced replacement cost. However, if the used vehicle lacks modern safety features or has a history of frequent claims, the cost might increase.

Comprehensive Coverage

Understanding different types of coverage is crucial when shopping for insurance. Comprehensive coverage is a term you will likely hear a lot. This covers damage to your vehicle caused by incidents other than collisions, such as fire, theft, vandalism, or natural disasters. If you're financing or leasing your vehicle, your lender might require this coverage. Consider If you own an older vehicle, weigh the cost of comprehensive coverage against the vehicle’s current value.

Property Damage Liability Coverage

If you’re in an accident and you hit a pole or building, property damage insurance is the coverage you need. This covers the damage your car causes to someone else's property. It can cater to car repairs, fence repairs, or any other property damaged in an accident. Ensure your coverage limit is high enough to cover potential damage costs, preventing out-of-pocket expenses fully.

Bodily Injury Liability Coverage

If you're at fault in an accident that injures someone, this coverage pays for their medical expenses and any lost wages. It also covers legal fees if you’re sued.

Recommendation: Given the high costs associated with medical care, it's advisable to have a higher coverage limit, providing you ample protection.

Collision Coverage

Collision coverage is a type of auto insurance coverage that pays for damage to your own vehicle in the event of a collision. Unlike liability coverage, which pays for damages to other people’s property or their medical expenses when you’re at fault, collision coverage is designed to cover your own losses. Here’s a deeper look:

Uninsured Motorist Coverage

Although it's required by law in most states, not everyone on the road has insurance or sufficient coverage. This insurance protects you if you're hit by an uninsured or underinsured driver.

Note: Some states require drivers to have uninsured motorist coverage, while in others, it's optional.

7 Key Insurance Terms You Need to Know

To confidently navigate the auto insurance landscape, understanding certain terms is crucial:

• Premium: This is the amount you pay for your insurance policy. It can be paid monthly, semi-annually, or annually.
• Deductible: The amount you pay out-of-pocket before your insurance kicks in. For example, if you have a $500 deductible and $2,000 in damage, you pay the first $500, and your insurance covers the remaining $1,500.
• Claim: A request made by the policyholder to the insurance company to cover an incurred loss.
• Coverage Limit: The maximum amount the insurer will pay for a covered claim. Any amount beyond this will be your responsibility.
• Exclusion: Specific situations or circumstances where the insurance won’t cover the damage.
• Deductibles: A higher deductible will lower your premium but means you pay more out-of-pocket in a claim.

Selecting the right auto insurance requires a blend of understanding your own needs and comprehending the various coverages available. By evaluating the age and value of your vehicle, considering potential risks, and educating yourself on key terms, you can choose a policy that offers both security and value for money. Remember, the cheapest policy isn’t always the best. Aim for comprehensive protection that ensures peace of mind while on the road.