{"id":2635,"date":"2011-11-16T22:16:15","date_gmt":"2011-11-17T04:16:15","guid":{"rendered":"http:\/\/www.tillmanallen.com\/insurance-brentwood-tn\/ulead\/?page_id=2635"},"modified":"2011-11-16T22:16:15","modified_gmt":"2011-11-17T04:16:15","slug":"auto-insurance-tips","status":"publish","type":"page","link":"https:\/\/www.tillmanallen.com\/insurance-brentwood-tn\/insurance\/knowledge-center\/auto-insurance-tips\/","title":{"rendered":"Auto Insurance Tips"},"content":{"rendered":"

Auto Insurance Knowledge Center:<\/h2>\n

Click any of the following general topics to reveal all the helpful details.
\n
\n\n

\n

<\/p>\n

\n

Statements on this website provide general information only as it relates to policies and coverages. All coverages are subject to the terms, conditions and exclusions of the actual policy issued so contact one of our licensed agents for questions regarding your specific needs and policy.<\/p>\n<\/p><\/div>\n

<\/p>\n

\n
\n <\/span>Tillman\/Allen Insurance\n <\/div>\n

The Basics of Auto Insurance<\/h2>\n
<\/div>\n<\/p><\/div>\n
\n

What is auto insurance?<\/p>\n

Owning a car involves several risks. When a car accident occurs, people may be injured and vehicles (or other property) may be damaged. Damage can also occur through theft, vandalism, or natural disasters. Auto insurance can protect you against the financial loss associated with these risks. Insurance companies provide auto insurance through personal auto policies (PAPs) \u2014 a contract between you and your insurer specifying each party’s rights and obligations.<\/p>\n

Why do you need it?<\/p>\n

State law (and\/or your car’s lender) often requires you to purchase at least a minimum amount of auto insurance. You may find it sensible to purchase greater coverage, however, to protect your auto investment, pay for necessary medical expenses, cover your legal liability, and cover any additional losses related to driving. If you cause an accident and the other driver suffers damages over and above your policy’s limits, your personal assets and future earnings may be put at risk.<\/p>\n

What do you need to know?<\/p>\n

First, it’s important to know how to read and understand an auto insurance policy. Next, carefully balance cost against desired coverage. Finally, allow us the opportunity to evaluate and compare the various car insurance products to ensure you get the best value for your insurance dollar.<\/p>\n

\n

Understanding your personal auto policy (PAP)<\/strong>
Your policy discusses types of coverage, rights, and obligations, as well as exclusions or limitations. Coverage types include: liability (injuries\/damage you cause to others), medical payments (paid regardless of fault), uninsured\/underinsured motorist (losses caused by uninsured drivers), and coverage for damage to your auto.<\/p>\n

What is a deductible?<\/strong>
A deductible is an amount of money you pay before your insurance kicks in. Deductibles can come in any dollar amount, but are generally $100, $250, $500, or $1,000.<\/p>\n

Coverage vs. cost<\/strong>
Choosing the appropriate level of coverage depends on the value of your vehicle, assets you must protect, how much you can afford out-of-pocket, and your tolerance for risk.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

Anatomy of the Personal Auto Policy (PAP)<\/div>\n
\n

Part A \u2014 Liability Coverage<\/p>\n

Liability coverage insures you against injuries you cause to other people and damage you cause to other people’s property in an automobile accident. The PAP separates liability coverage into bodily injury and property damage coverage. Liability claims for pain and suffering can be virtually limitless \u2014 this is one area where you definitely do not want to be underinsured.<\/p>\n

Part B \u2014 Medical Payments Coverage<\/p>\n

Medical payments coverage (med pay) pays medical expenses resulting from an automobile accident up to a specified dollar limit. The purpose is to provide payment for immediate medical treatment for passengers injured in an auto accident \u2014 with no need to wait and find out who is at fault.<\/p>\n

Part C \u2014 Uninsured\/Underinsured Motorist Coverage<\/p>\n

This coverage insures you against losses caused by someone who is completely uninsured or who has less than adequate insurance to cover the loss (underinsured).<\/p>\n

Part D \u2014 Coverage for Damage to Your Auto<\/p>\n

Part D consists of two parts: collision coverage (insures you against damage caused in an accident) and comprehensive coverage (insures you against all other physical damage such as fire, theft, flood, and vandalism). These coverages can be written with or without a deductible.<\/p>\n

Part E \u2014 Duties After an Accident or Loss<\/p>\n

This part deals with the specific procedures that must be followed in order to have your claim covered. It’s essential to follow these procedures carefully, since timely payment of your claim may depend on your doing so.<\/p>\n

Part F \u2014 General Provisions<\/p>\n

Part F contains various provisions that limit and qualify the coverage provided in other sections of the PAP. If the conditions set forth in this section are not met, the insurer may be able to deny coverage of a claim.<\/p>\n<\/p><\/div>\n

Policy Options<\/div>\n
\n

The coverage your personal auto policy (PAP) provides can be tailored to meet your specific needs. Subject to financial concerns, you can select the coverages and amounts you’d like. Policy options include choice of policy period, cancellation terms, payment plans, towing and labor coverage, and transportation expense (rental car) coverage.<\/p>\n

\n

Paying your premium<\/strong> \u2014 Insurers typically offer three options: (1) pay the entire annual premium up front, (2) make a down payment then pay monthly installments, or (3) pay equal monthly amounts for 10 or 12 months. Paying the entire amount up front may result in some savings; a payment plan is most common but may include a small service fee.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

<\/p>\n

Coverage Options & Cost Factors<\/div>\n
\n
\n <\/span>Tillman\/Allen Insurance\n <\/div>\n

Auto Insurance Coverages<\/h2>\n
<\/div>\n<\/p><\/div>\n
\n

Auto insurance isn’t a “should I or shouldn’t I?” proposition. Most states have laws requiring you to purchase at least some minimum level of auto insurance, and lenders require it. In reality, there is often a large gap between the insurance you’re required to carry and what you should consider carrying.<\/p>\n

Common Personal Auto Policy Coverages<\/div>\n
\n
\n <\/svg>
\n Liability \u2014 Bodily Injury\n <\/div>\n
\n <\/svg>
\n Liability \u2014 Property Damage\n <\/div>\n
\n <\/svg>
\n Medical Payments (Med Pay)\n <\/div>\n
\n <\/svg>
\n Uninsured Motorist Coverage\n <\/div>\n
\n <\/svg>
\n Underinsured Motorist Coverage\n <\/div>\n
\n <\/svg>
\n Collision Coverage\n <\/div>\n
\n <\/svg>
\n Comprehensive Coverage\n <\/div>\n
\n <\/svg>
\n Towing & Labor\n <\/div>\n
\n <\/svg>
\n Rental Car \/ Transportation Expense\n <\/div>\n
\n <\/svg>
\n GAP Coverage\n <\/div>\n<\/p><\/div>\n

Liability Coverage<\/p>\n

Liability coverage consists of bodily injury liability (covers losses when you or others injure or kill someone with your car) and property damage liability (covers losses when you or others damage someone else’s property with your car). The bodily injury portion is the most crucial \u2014 claims for medical bills, lost income, and pain and suffering can easily mount to hundreds of thousands of dollars.<\/p>\n

\n

In most states, the required minimum liability coverage doesn’t come close to covering the costs associated with a serious accident. Consequently, it may be advisable to carry both bodily injury and property damage liability coverages well beyond state minimums.<\/p>\n<\/p><\/div>\n

Medical Payments Coverage<\/p>\n

If you or your family members are involved in an accident \u2014 whether in your insured car or in someone else’s car \u2014 medical payments coverage will pay medical expenses incurred as a result of the accident. Your non-family passengers may also qualify for this coverage if they’re injured in your car.<\/p>\n

Uninsured\/Underinsured Motorist Coverage<\/p>\n

This provides coverage for losses you and others suffer as a result of an accident that is the fault of another driver who either doesn’t have adequate auto insurance, or has no insurance at all. The number of uninsured, underinsured, and hit-and-run motorists on the road makes this coverage extremely important.<\/p>\n

Collision & Comprehensive Coverage<\/p>\n

Collision covers you for losses when your vehicle is damaged in an at-fault collision. Comprehensive covers losses when your vehicle is damaged by fire, vandalism, flood, and a variety of other events. Both are typically optional coverages \u2014 but if you don’t buy them and your vehicle is damaged, you’ll pay for repairs out of pocket.<\/p>\n

\n

It is generally not cost effective to have collision and comprehensive on much older, virtually valueless vehicles. With more expensive vehicles, the need for these coverages is much greater. If you drop your damage protection coverage, you could be responsible for the entire cost of repairing or replacing your vehicle.<\/p>\n<\/p><\/div>\n

Endorsements<\/p>\n

Endorsements are optional provisions you can add to your auto insurance policy for an extra premium. Typical endorsements include towing and labor, car rental costs, extraordinary medical expenses, and certain recreational vehicles. Endorsements are not necessary in most cases, but may be highly advantageous if your situation and lifestyle necessitate them.<\/p>\n<\/p><\/div>\n

<\/p>\n

What’s Not Covered<\/div>\n
\n
\n <\/span>Tillman\/Allen Insurance\n <\/div>\n

Auto Insurance Exclusions<\/h2>\n
<\/div>\n<\/p><\/div>\n
\n

Your personal auto policy (PAP) identifies a number of events and situations that are specifically omitted or excepted from coverage. These are called exclusions. Knowing what’s not covered is just as important as knowing what is.<\/p>\n

\n

Common Exclusions Include:<\/strong><\/p>\n

    \n
  • Property damage and personal injury that you intentionally caused<\/strong><\/li>\n
  • Damage to a vehicle from normal wear and tear<\/strong> or mechanical breakdown<\/li>\n
  • Losses while using your vehicle for commercial\/rideshare purposes<\/strong> (without proper endorsement)<\/li>\n
  • Damage to property you own or transport<\/strong> (subject to policy terms)<\/li>\n
  • Injuries to employees during the course of employment (covered by Workers’ Comp)<\/li>\n
  • Vehicles with fewer than four wheels<\/strong> (motorcycles require separate policy)<\/li>\n
  • Losses from war or nuclear hazard<\/strong><\/li>\n<\/ul><\/div>\n

    Limitations<\/p>\n

    Your PAP also specifies certain caps on the dollar amounts of coverage you are entitled to receive under the policy. These are called limitations. Separate limits are generally set for liability, medical payments, uninsured motorists, collision, and comprehensive coverages. It’s important to read your PAP so that you’re aware of all applicable exclusions and limitations.<\/p>\n

    Individuals Covered Under a PAP<\/div>\n
    \n

    Named Insured<\/strong> \u2014 You, the individual primarily insured under the policy, receive the most extensive coverage.<\/p>\n

    Spouses<\/strong> \u2014 Your spouse is generally entitled to receive the same coverage as you if they live with you, even if not identified as a named insured.<\/p>\n

    Family Members<\/strong> \u2014 Family members (as defined in your policy) are insured as long as they own, use, or maintain the covered vehicle.<\/p>\n

    Other People<\/strong> \u2014 If your covered auto is involved in an accident, others may also be covered under certain sections of the policy (liability coverage for those using the covered auto, medical payments for those occupying it).<\/p>\n<\/p><\/div>\n<\/p><\/div>\n

    <\/p>\n

    Claims & Smart Shopping<\/div>\n
    \n
    \n <\/span>Tillman\/Allen Insurance\n <\/div>\n

    Auto Insurance Claims & Smart Shopping<\/h2>\n
    <\/div>\n<\/p><\/div>\n
    \n
    Do I Have Enough Auto Insurance?<\/div>\n

    Auto insurance often seems fraught with weighty terminology. It’s smart to ask questions and have our agents explain the differences between coverage types. Understanding your coverage levels before a loss occurs is far better than discovering gaps afterward.<\/p>\n

    When to Review Your Policy<\/p>\n

    \n
      \n
    • Annual renewal:<\/strong> Review your policy and make necessary changes \u2014 usually a month before renewal is ideal.<\/li>\n
    • Family status changes:<\/strong> Marriage, divorce, new teen driver \u2014 all affect your coverage needs.<\/li>\n
    • Property increases in value:<\/strong> Your home could be at risk without adequate auto liability protection.<\/li>\n
    • Net worth increases:<\/strong> As your assets grow, so does the importance of proper coverage levels.<\/li>\n
    • You buy a new or additional car:<\/strong> Review your liability coverage to ensure it’s still adequate.<\/li>\n<\/ul><\/div>\n
      Saving Money on Auto Insurance<\/div>\n

      Specific Ways to Save<\/p>\n

      Going without insurance is generally not an option \u2014 but there are steps you can take to reduce auto insurance costs without sacrificing needed protection.<\/p>\n

      \n
        \n
      • Increase your deductible<\/strong> \u2014 Raising from $250 to $500 can lower your annual premium by 10% or more.<\/li>\n
      • Narrow scope of coverage on older vehicles<\/strong> \u2014 If your car is worth less than $1,000, dropping collision and comprehensive may be cost-effective.<\/li>\n
      • Drive less \/ low-mileage discount<\/strong> \u2014 Ask us if you qualify for a low-mileage discount.<\/li>\n
      • Maintain a clean driving record<\/strong> \u2014 No accidents, moving violations, or convictions can earn price breaks.<\/li>\n
      • Buy a low-profile car<\/strong> \u2014 Sports cars and high-performance vehicles generally carry higher premiums.<\/li>\n
      • Install safety\/antitheft devices<\/strong> \u2014 Anti-lock brakes, airbags, car alarms, and tracking systems may earn discounts.<\/li>\n
      • Inquire about multi-policy discounts<\/strong> \u2014 Bundling auto and homeowners insurance with the same carrier often yields savings.<\/li>\n<\/ul><\/div>\n
        Comparing Policies<\/div>\n

        Before purchasing auto insurance, always evaluate and compare the various products offered to ensure you get the coverage you need at an acceptable level of value. When comparing policies, always make sure you are comparing very similar policies \u2014 same deductibles, same limits of liability.<\/p>\n

        \n

        Evaluate the strength and reputation of the insurance company.<\/strong> It’s important to buy auto insurance from a financially sound, reputable insurance company. You can check the ratings published by A.M. Best, Moody’s, Standard & Poor’s, or Duff & Phelps.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n