Whether it's home, health, or car, if you live and drive in Tennessee you need a certain amount of insurance coverage. Knowing how much you do (and don't) need will help you to save money on your Tennessee insurance rates, and it will also make sure you have adequate coverage for your home and car.
Tennessee Auto Insurance
In Tennessee, auto insurance costs run about $650 a year, less than the national average of just under $800. You must have liability insurance of $25,000/50,000 bodily injury and $10,000 in property liability. If this doesn't sound like much, you're right-in a serious accident, these amounts won't get far, and they also won't cover repairs to your own vehicle.
It might raise your rates, but increasing your coverage over state minimums is the way to go in Tennessee. Ideally, your quotes for Tennessee insurance rates should include the following:
- Bodily liability. Increasing the limits to $100,000/300,000 will not only cover hefty medical bills, but it will also cover liability costs in the event you are sued and taken to court.
- Property liability. $10,000 of coverage won't get you far if you run into a building or you rear end a Ferrari. $50,000 is a safer amount and will cover more.
- Collision. Collision coverage will pay for your car's repairs if you are involved in an accident.
- Comprehensive. Hail, theft, flooding, broken windshields-these are all covered under comprehensive insurance, which many auto lenders actually require if you have a loan.
- Uninsured/underinsured. With an increasing rate of uninsured drivers on the road, this insurance is a good idea because it covers your repair costs if you are hit by a driver without adequate insurance.
Homeowners Insurance
An average HO-3 policy will cost about $706 a year. This covers damage from any peril you're likely to face in the Volunteer State, but it doesn't include contents insurance for your personal belongings. Insurance companies recommend insuring your contents for about 50% the value of your home. If you think it will be more or less, you can do your own inventory and adjust your coverage as necessary.
Another consideration for homeowners is flood insurance. This type of insurance is regulated by FEMA and must be purchased separately. With so many beautiful rivers in Tennessee, it is not a bad idea to consider flood insurance when determining your Tennessee insurance rates, particularly if you live in an area that is prone to a lot of rain or close to the water.
Saving on Tennessee Insurance Rates
Increasing your insurance coverage means spending a little more on your premiums, but the results are worth it if you ever need to file a claim. And you can still save a significant amount on your Tennessee insurance rates by shopping around and comparing quotes. Localinsurance.com is a great place for this. This site allows you to receive online rates in a matter of minutes from the convenience of your own home, so you know you are getting the best deal possible on your Tennessee insurance.
