Auto Insurance


Why Do You Need Auto Insurance

Auto insurance is important because it protects you against exposures that could cause a financial loss if you have an accident. When you get an auto policy, you make a legally binding agreement with your insurance company to pay your premium in exchange for protection. Auto insurance provides coverage for property damage, liability and medical expenses:

  • First party or property coverage pays for vehicular damage you sustained or for theft of your vehicle
  • Liability coverage pays for bodily injury or property damage should you be deemed negligent for a loss
  • Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

There are various kinds of coverage under an auto policy. Having some form of auto insurance is a requirement in most states. If your vehicle is currently being financed, your lender might have certain requirements. Most auto policies are for 6 months or a year. During your policy renewal period, your insurance carrier will notify you. You will also be notified when it is time to pay your premium.

Car Accident — Insurance in Sevierville, TN

Why do you need auto insurance?

It's really all about protecting yourself financially.

  • If you're in an accident or your car is stolen, it costs money, often a lot of money, to fix or replace it.
  • If you or any passengers are injured in an accident, medical costs can be extremely expensive.
  • If you or your car is responsible for damage or injury to others, you may be sued for much more than you're worth.
  • Not only is having insurance a prudent financial decision, many states require you to have at least some coverage.

Questions to ask your agent Your Independent Agent is an advocate for finding auto insurance that meets your specific needs. Here are a few things to consider as you prepare for the discussion:

  • How much can you afford to pay if you get in an accident? (To keep premiums low you may want to have a higher deductible and be willing to pay more for repairs.)
  • What is the insurance company's level of service and ability to pay claims?
  • What discounts are available? (Ask about good driver, multiple policy and student discounts.)
  • What's the procedure for filing and settling a claim? (Ask who to call and what happens after you file a claim.)