When you have a car in Maryville, TN, you know that auto insurance is mandatory, but do you know if your auto coverage protects you optimally? Does it make sense to pay an additional premium for maximum coverage? But isn’t it even riskier to be underinsured? If you have these questions running through your mind, hang on as Carr Insurance Group guides you through the car insurance you should buy. Here is how to know that your auto insurance is adequate.
One that meets the requirements of the state
At the very least, we advise our clients to carry auto insurance that meets the minimum conditions of the state. Tennessee State requires drivers to have liability coverage that provides property damage and bodily injury protection. Driving without valid insurance could result in fines and penalties that include license suspension.
Should cover your assets
Your auto insurance should be adequate to cover your assets when faced with financial claims. For instance, if your assets are worth $300,000, your auto insurance should have a limit of at least $350,000. This way, if you cause an accident, your assets are not at stake to cover medical costs, property damages, and legal suits from third parties. However, if you have significant assets and earnings, you can consider umbrella insurance for broad liability coverage.
Should cover the cost of your car
An adequate amount of car insurance should pay for your vehicle in case of a total loss. When insuring your car, there are two types of payouts to consider.
- Actual cash value: This covers the market value of your car at the time of the loss. And since cars depreciate from the time you start driving, this amount may never be enough to cover your loss.
- Replacement cash value: This payout works best for you because it’s large enough to replace the actual loss of your car. However, it may cost you a little more on premiums.
Are you shopping for car insurance in Maryville, TN? Please contact Carr Insurance Group for a comprehensive quote. If you need to determine whether you have enough car insurance, you can call or visit our offices for help to talk with our staff and have your questions answered.