Full coverage is not enough! Automobile insurance actually has several types of insurance or types of coverage. You may need all of these forms of coverage or you may need only some of them. The highest cost of automobile insurance is when you buy them all.
What are your limits? What is your overage exposure?
Overage is any amount of monetary damage awarded over the amount of one's insurance coverage. However, higher limits on specific types of coverage are critical to protecting yourself. You need protection not only from your potential personal liability arising out of accidents, but we also need protection from financially irresponsible individuals.
People recognize their need to protect themselves from being sued and provide for the repair of their car in the event of a collision. While this is important, what is as important is that automobile insurance protects us from the negligence of not just ourselves, but perhaps more importantly, from the negligence of others.
Many people with full coverage have the minimum state required limits. Minimum limits in Tennessee are $25,000.00 per person and $50,000.00 per accident. This means that their policy provides that if they hit another vehicle their liability coverage is limited to $25,000.00 per person injured or per vehicle damaged and $50,000.00 per accident for all persons injured and all vehicles damaged. So if they hit a new car worth more than $25,000.00, they will be personally responsible for the overage. If the accident involves three or four cars then their protection could be exhausted after the payment of the $50,000.00. And again they must stand personally responsible for the overage. Overage is the amount of monetary damage awarded over the amount of one's insurance coverage.
Some of the types of coverage seen in Tennessee automobile liability policies are listed here and described below.
- Liability
- Collision
- Uninsured motorist
- Med. Pay
- Comprehensive
Uninsured Coverage:
Also, if you are in an accident caused by the negligence of another person or entity that does not have insurance or whose insurance coverage is insufficient to pay the amount of damages caused by their conduct, uninsured motorist coverage protects you from that person's financial inability to pay. So this can be very important to you, your family and others traveling in your automobile. Consider being in an accident and being hospitalized for three weeks and out of work for a few months. The amount of medical bills and lost income you would suffer would be a great deal over and above the amount of "minimum" amount of coverage, $25,000.00.
Liability insurance coverage: Insurance to protect the insured from his or her own fault and negligence. This insurance pays the sum, up to the policy limits, that the insured is found to be legally liable to pay.
Uninsured motorist coverage is like liability insurance. Except when you, the insured, suffer damage or harm, and the person responsible for these damages is uninsured or underinsured, then your insurance company will pay you what you are legally entitled to recover. The uninsured coverage acts just as if your insurance was the liability insurance for the other person. This can be so helpful to those persons who are hurt as a result of the fault of another and have received serious injury or harm.
Med Pay coverage: Pays medical bills up to the limits of the coverage for all occupants of your vehicle without regard to fault
Collision coverage: Pays to repair or replace your vehicle when damaged in a collision, also regardless of who is at fault.
Comprehensive coverage: Also pays to repair your vehicle and repair or replace the contents of the vehicle from damage caused by incidents other than collision, such as theft. Again this is subject to limits and special exclusions.
Mart Fendley specializes in representing people who have been injured. Whether hurt on the roads, at the job, at home, at play, by a defective product or even hurt by the negligent professional health care provider. Contact him at 931-266-4647 or via email.
Toll Free: 866-469-3749
