3 car insurance coverage myths



When it comes to the monetary consequences of a car accident, it is better to be safe than sorry. You may think you have no need to worry because you have good enough insurance. However, if you believe one or more of these coverage myths, you may pay for it later. Make sure you have the right information to ensure proper financial protection.

1. Minimum coverage is the best value

Because insurance policies are pricey, it can be tempting to obtain only the minimum liability coverage to save money. These are the auto insurance requirements in Tennessee:

  • $25,000 per person for bodily injury
  • $50,000 maximum bodily injury coverage per accident
  • $15,000 for property damage per accident

That may seem sufficient for paying all or most of the resulting expenses, but it is not. You can predict neither how an injury will affect someone’s health or work ability nor how much medical costs will continue to rise. You also must consider legal fees if the person sues you.

Furthermore, there are the bills for your own car damage and injuries from the accident. The expenses quickly add up, and you may have to pay a significant amount out of pocket all at once. It is more cost-effective to pay a higher premium periodically than to risk the financial consequences of only having minimum coverage.

2. Minimum coverage is enough 

As noted above, the minimum requirements only include bodily injury and property damage. There are additional types of coverage you can add to your policy for more protection, such as the following:

  • Collision: for repairing your vehicle’s damage
  • Comprehensive: for vehicular damage not from collisions, such as theft
  • Uninsured/underinsured motorist: for protection against at-fault drivers who do not have insurance

You may have additional options depending on your insurance provider.

3. A higher rate means a better policy

Each insurance company determines rates differently. Paying a higher premium does not mean you have better coverage. It is important to understand the details of your policy to ensure you are getting the best protection and value. It is also smart to shop around regularly. You do not have to stick with the same provider each year, especially when you may not be receiving any loyalty benefits.

Also consider the company’s reputation in handling claims. There is no point in handing over money to an insurer that will not hand it back when you need it. If this happens to you, hire an experienced personal injury attorney for help in dealing with your provider. A lawyer can also represent you in seeking additional compensation from the driver responsible for the accident.