Auto Insurance Advice You Should Follow in Tennessee

As one of the fastest growing places in the nation, Tennessee is putting thousands of new drivers on the road every year. It doesn't matter if you're still learning the ropes or already a skilled driver though, being adequately protected is the law. Even if it wasn't required under state law though, any experienced driver could tell you about the importance of having car insurance. A good policy financially protects you and your vehicle in the case of an accident. Here's a look at some of the specific laws in Tennessee and how it stacks up:

Requirements to Know and Adhere to

In order to legally obtain a driver's license and operate a vehicle in the state, drivers are required to maintain a minimum amount of liability protection. The state's minimum requirements are 25/50/10 - which means $25,000 for single person bodily injuries, $50,000 for multiple people, and $10,000 for property damage. These minimums fall in line with places from the rest of the country. Of course, any industry expert would highly recommend that you sustain more than just the state's minimum amount of coverage. It's simply insufficient if you really want the best protection. Collision and comprehensive coverage should also be strongly considered, especially for young drivers.

Considerations for Drivers in Tennessee

Like any type of policy, premiums tend to vary greatly around the country and auto insurance is no exception. Residents should feel fortunate though, as they enjoy one of the lowest average rates in the country. For a policy with only liability coverage, the average cost is less than $365 a year. That's a very reasonable price in comparison to other states, which is why Tennessee is ranked in the top ten least expensive areas for protection. As you could expect, a more inclusive policy will cost you more, but the extra coverage is well worse the price for most drivers.

What Determines Premiums?

No matter where you live, you want to make sure you're getting the best vehicle insurance coverage for your money. In order to do that, it helps to understand just how your rates are determined. Here's a look at some of the different aspects used in determining your premiums:

  • In case you haven't figured it out yet, your credit score plays a significant role in the financial aspects of your life. When you apply for a plan, you can bet the provider will pull up a copy of your credit report. Generally, higher credit scores lead to lower rates.
  • Perhaps the most important factor in determining your rates is your past driving record. Just one or two accidents with claims filed can cause your rates to skyrocket, which is why being a safe driver really pays off.
  • Finally, the size of your policy's deductible is also a vital factor in your rates. Having a large deductible will typically allow you to maintain lower premiums, although you'll have to pay a lot more if you ever need to make a claim.
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