Why
do I need to buy insurance?
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Tennessee
requires auto insurance
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Protects
your assets against attachment as a result of a court award.
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Provides
for cost of defense when you are sued.
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Allows
you to purchase such high value items as a car or a home by insuring the
collateral on behalf of the financial institution that lent you the money.
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Provides
financial security for your family in the event of your death.
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Provides
for the health care of you and your family through systematic payments.
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Allows
you to save for retirement while deferring interest payments to a time
when your income is lower, thus reducing your tax payments.
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Allows
you to remain financially solvent when you're ill and can't work.
What
factors affect the insurance premiums I pay?
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Claims
activity including such costs as medical care, auto body repair, construction,
legal defense, jury awards, claims adjustment, and insurance fraud.
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Overhead
including rent, utilities, employee salaries and benefits, office supplies,
equipment, and furniture.
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Investment
income.
How
does where I live affect my premium?
Where
you keep your car directly affects your chances of having an accident or
becoming a victim of theft or vandalism. The likelihood of encountering
these problems increases in larger, more densely populated cities, while
such incidents remain relatively low in rural areas.
Additionally,
the time and efficiency of police response and law enforcement, local road
and traffic conditions, and the quality of local medical services can affect
regional insurance rates. Some insurers even factor in the litigation rates
in a given area (how many lawsuits are filed, go to trial, out of court
settlements, and their amounts).
Do
all states require some kind of Liability insurance?
No.
Although not every state requires Auto insurance, some have financial
responsibility laws mandating all drivers to be able to pay for any damage
or injury they might cause. However, Liability insurance is still the best
way for you to meet your state's financial responsibility requirements.
By
law, all states offer UM and UIM policies, including no-fault states. In
fact, some states require all motorists to carry this coverage in order
to gain protection from inadequate insurance coverage of other drivers.
How
do I keep my insurance company from canceling my policy?
Besides
maintaining a clean driving record, consider investing in special safety
and security features for your car. If you've been in an accident, consider
taking a defensive driving course.
What
happens when I loan my car to someone? Is that person covered by my policy?
Am I still covered?
Yes.
Liability and coverage for Physical Damage (i.e. Comprehensive and Collision)
always follow your car. Plus, if the driver of your car is insured, his/her
policy will also be available to cover the cost of damages and injuries.
The
same rules apply when you borrow someone else's vehicle; your own insurance
follows you no matter whose car you're driving. But the vehicle owner's
policy is the key coverage in the event of an accident.
Am
I covered for natural disasters or Acts of God?
Comprehensive
insurance, which covers you for fire and theft, generally covers you against
damage by flood, earthquake, hail, and other natural perils, except when
your car is overturned (which is technically considered a collision). If
you have specific concerns about the safety of your vehicle in natural
disasters, contact us for information on catastrophic coverage.
How
can I challenge my insurers if they refuse to cover a claim?
Usually,
insurers that refuse to cover a claim have a strong legal reason for doing
so even if you disagree. First, contact us if you feel you're being treated
unfairly. Your agent is your strongest advocate in insurance matters. But
if it's a legal problem, you might have to hire a lawyer.
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HOMEOWNERS
INSURANCE
Who
decides on the type of insurance, the mortgage company or me?
You
do. The mortgage company collects a set amount from you each month in order
to protect their investment. This money is put in escrow and covers your
insurance and taxes. However, the policy is still yours and you might select
the insurance you feel offers the best coverage at the best rates.
What
exactly does a Homeowners policy cover?
Exact
coverage is impossible to define because there are different policies and
about 900 insurance companies writing Property/Casualty business in the
United States. However, 80% of Homeowners policies are based on a standard
form. All Homeowners policies cover two important areas: Property and Liability.
Property
insurance covers your structures and possessions. Personal Liability, as
its name implies, means you're legally obligated to pay money to another
person for actions caused by you, your family, or your property. That liability
extends to medical payments to others for injuries caused by you or your
family.
Are
floods, earthquakes, and other natural disasters covered?
Most
catastrophes are covered. Flood and earthquake damage, however, are not
covered by a standard policy and both perils are more common than many
people realize. We can advise you on such normally excluded conditions
as floods and earthquakes.
Are
there exclusions I should know about?
Exclusions
listed and defined in your policy might include neglect, intentional loss,
earth movement, general power failure, and even damage caused by war.
If you fail to take care of your property (e.g., a leaky roof), you might
not be covered. Obviously, if you intend to lose an object or damage
your property, there's no coverage.
One
other exclusion that can be costly is the Ordinance or Law exclusion. Building
codes established by governmental bodies that drive up the cost of rebuilding
or repairing after a loss occurs might not be covered by your insurance
policy. Thus, if you discover when replacing damaged property that current
law demands higher grade or more expensive materials than those you're
replacing, the new materials might not be covered fully.
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RENTERS
INSURANCE
How
expensive is renters insurance?
Renters
insurance is typically available for as little as $100 a year.
Does
my landlord's insurance protect me?
Generally,
no. The property owner's insurance covers the building itself and seldom
a tenant's possessions or liability. Clarify this with your landlord before
signing a lease.
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BUSINESS
INSURANCE
I'm
just getting my business started. Do I need insurance immediately?
Yes.
Your chance of suffering a loss begins with the first day of business.
If you suffer a loss and have no insurance or have improper or insufficient
coverage, your insurance agent can do little, if anything, to help you.
Also,
many states and local jurisdictions require businesses to have insurance
to begin operating. And if you rent space for your business, your landlord
probably requires you to obtain adequate insurance.
I
don't have any major business assets. Why do I need insurance?
Every
business has some property. When you think about it, your business is your
property. Just like your home and your car, your business needs to be protected
from loss, damage, and liability. In addition, your business is your source
of income, so you need protection from the potential loss of that income.
Does
insurance coverage vary for different businesses?
It
can. Many small businesses opt for package policies that cover the major
Property and Liability exposures as well as for a loss of income. A common
package policy used by many small businesses is called the Business Owners
Policy (BOP).
Generally,
BOPs provide more complete coverage at a lower price than separate policies
for each type of insurance needed. We can help you decide which policy
or policies are right for your business. You can also purchase additional
coverage for perils or conditions otherwise excluded (e.g., flood protection)
as endorsements to a standard policy or as a separate, second policy called
a Difference in Conditions (DIC) policy.
We
can advise you of the best policy (or policies) to protect you and your
business.
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STUDENT/RECENT
GRADUATE INSURANCE
I'm
a college student. Am I still covered by my parents' policies?
It
depends on the policy and its terms. For example, most Health insurance
policies cover insured children up to age 18, or up to 22 if the child
continues as a full-time student. If you're over 18 and not a full-time
student, you'll need your own Health insurance policy.
What
kinds of risks do college students face?
College
students face many new risks as they head off to school: theft of personal
property, auto accidents due to driving long distances, and risks related
to attending and giving parties.
How
extensive are these risks?
College
and university campuses aren't immune to property crime. A 1995 FBI study
reported that there were more than 100,000 property crimes on college nationwide,
including burglary, theft, motor vehicle theft, and arson. Thieves took
an average of $1,251 of property per offense that same year.
At
least one in 10 college students revealed that they had caused an auto
accident in the last two years. One in four had a speeding ticket or other
moving violation. These and other offenses contribute to higher Auto insurance
premiums for students.
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Additional Interest Insured
Another person or company that needs to carry liability coverage since
they can be held legally liable for an accident involving an insured or
an insured vehicle. It may be a leasing company, employer, title owner
of the vehicle, or living trust.
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Add On Equipment Coverage
This is a coverage offered in a limited number of states where we do
not provide Custom Parts or Equipment coverages. It assures coverage for
listed custom parts or equipment. You must carry both comprehensive and
collision coverage. If the total value of your custom parts and equipment
exceeds $5,000, please call Customer Service toll free at 1-800-925-2886
in order to get your rate.
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Bodily Injury Liability Coverage
Pays when an insured person is legally liable for bodily injury or death
caused by your vehicle or your operation of most non-owned vehicles. This
coverage also pays for your legal defense if you are sued.
Common Exclusions: No coverage for (1) bodily injury/death when you
are using your vehicle to carry persons or property (including magazines,
newspapers, food) for compensation or a fee; (2) liability assumed under
a contract; (3) bodily injury/death to an employee; (4) bodily injury/death
caused by an intentional act; (5) property owned by, rented to, or in the
charge of an insured person; (6) bodily injury/death to you or a resident
relative; (7) bodily injury/death or property damage resulting from a relative's
use of a vehicle, other than a covered vehicle, owned by a person who resides
with you; or (8) bodily injury or property damage resulting from your operation
or use of a vehicle owned by you, other than a covered vehicle.
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Collision Coverage
Pays for loss to your covered vehicle when it collides with another
object or overturns. We will also pay for a collision loss to any non-owned
vehicle, or to a vehicle you have rented other than a vehicle rented for
use in connection with your business or employment, while that vehicle
is in your custody, or while you are operating it.
Common Exclusions: No coverage for damages or loss (1) to a vehicle
while being used to carry persons or property for compensation or a fee;
(2) resulting from intention acts, racing, or preparing for a race or stunting
activity; (3) customs parts or equipment, including electronic equipment,
in excess of the value declared in the application; or (4) to tapes, compact
discs, other media or their carrying cases.
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Comprehensive Coverage
Pays for loss or damage to your covered vehicle caused by any event
other than collision. This includes damages due to events such as fire,
theft, windstorm, flood, and vandalism. We will also pay transportation
and loss of use expenses under this coverage if your motor vehicle is stolen.
Common Exclusions: No coverage for damages or loss (1) to a vehicle
while being used to carry persons or property for compensation or a fee;
(2) resulting from intention acts, racing, or preparing for a race or stunting
activity; (3) customs parts or equipment, including electronic equipment,
in excess of the value declared in the application; or (4) to tapes, compact
discs, other media or their carrying cases.
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Declarations Page
The copy of your policy that you receive from your insurance company
listing:
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your name as the first named insured;
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the effective and expiration dates of your policy;
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the types of coverage you have elected;
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the limit for each coverage;
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the cost for each coverage;
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the specified vehicles covered by the policy;
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the types of coverage for each vehicle covered by the policy; and
other information applicable to the policy.
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Deductible
The amount of each loss you agree to pay. Generally, choosing a higher
deductible will lower your premium.
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Financial Responsibility Filing (SR22)
A document required by the court for persons convicted of certain traffic
violations that demonstrates proof of financial responsibility.
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Liability Insurance
Insurance for money the policyholder is legally obligated to pay because
of bodily injury or property damage caused to another person and covered
by the policy.
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Lienholder (Loss Payee)
Organization or person, such as a bank, financial institution or lender,
that loaned you money to purchase your vehicle. They hold the title to
the vehicle until the loan is paid. This gives them an insurable interest
in the vehicle.
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Loan/Lease Payoff Coverage
Loan/Lease Payoff Coverage pays the difference between what you owe
on your loan and what your insurance pays if your vehicle is declared a
total loss or is stolen and not recovered. We'll pay up to 25% of the vehicle's
actual cash value. This coverage has no deductible. Learn
More.
Note: This coverage does not pay for certain fees and charges, which
may include without limitation, unpaid finance charges or refunds due the
owner for such charges; excess mileage charges or charges for wear and
tear; extended warranties or refunds due to the owner for extended warranties;
charges for credit insurance or refunds due to the owner for credit insurance;
past due payments and charges for past due payments; collection or repossession
expenses; and by its salvage value if you retain the salvage.
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Medical Payment
Medical Payment coverage pays certain medical and funeral expenses resulting
from a motor vehicle accident. This coverage protects anyone occupying
your vehicle. It also covers you and relatives while in other vehicles
or if struck as a pedestrian. These benefits are payable without regard
to fault. This coverage may not be available in states that require Personal
Injury Protection Benefits. Principal Exclusions are similar to those for
Bodily Injury Liability Coverage (see above).
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Physical Damage
Coverage for property damage to a vehicle insured under the "Collision
Coverage" and "Comprehensive Coverage" sections of your policy.
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Policy Term
The length of time that the policy is in force. In most states, we offer
annual and semi-annual policies.
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Property Damage Liability Coverage
Pays when an insured person is legally liable for damage to the property
of others caused by your vehicle your operation of most non-owned vehicles.
This coverage also pays for your legal defense costs if you are sued.
Common Exclusions: Same as Bodily Injury Liability Coverage exclusions
(above), but the exclusions apply to damage to property.
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Rental Reimbursement
Rental Reimbursement coverage pays expenses to rent a car if you have
a loss covered under Comprehensive Coverage or Collision Coverage. Pays
up to the limit selected per day for up to 30 days.
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SR-22 (Financial Responsibility Filing)
A document required by the court for persons convicted of certain traffic
violations that demonstrates proof of financial responsibility.
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Towing and Labor / Roadside Assistance Coverage
This coverage reimburses you for emergency towing of your car when it
is disabled and for emergency roadside service.
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Uninsured Motorist Coverage
Protects you, your resident relatives, and occupants of a covered vehicle
if any of these insured sustain bodily injury, including any resulting
death, in an accident in which the owner or operator of a motor vehicle
who is legally liable does not have insurance.
Common Exclusions: No coverage for bodily injury/death sustained by
any person while using or occupying a (1) covered vehicle while being used
to carry persons or property for compensation or a fee; (2) a covered vehicle
without the permission of you or a relative; or (3) a non-owned vehicle
without the permission of the owner.
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Underinsured Motorist Coverage
Protects you, your resident relatives, and occupants of a covered vehicle
if any of these insured sustain bodily injury, including any resulting
death, in an accident in which the owner or operator of a motor vehicle
who is legally liable does not have enough insurance.
Common Exclusions: No coverage for bodily injury/death sustained by
any person while using or occupying a (1) covered vehicle while being used
to carry persons or property for compensation or a fee; (2) a covered vehicle
without the permission of you or a relative; or (3) a non-owned vehicle
without the permission of the owner.
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Uninsured Motorist Property Damage Coverage
Available in some states as an alternative to Collision coverage. This
coverage pays you for damage to the covered vehicle that has been sustained
in an accident in which the owner or operator of a motor vehicle who is
legally liable does not have insurance.
Common Exclusions: No coverage for property damage sustained by a covered
vehicle while (1) being used to carry persons or property for compensation
or a fee; or (2) a covered vehicle without the permission of you or a relative.
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Underinsured Motorist Property Damage Coverage
Available in some states as an alternative to Collision coverage. This
coverage pays you for damage to the covered vehicle that has been sustained
in an accident in which the owner or operator of a motor vehicle who is
legally liable does not have enough insurance.
Common Exclusions: No coverage for property damage sustained by a covered
vehicle while (1) being used to carry persons or property for compensation
or a fee; or (2) a covered vehicle without the permission of you or a relative.
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Vehicle Identification Number (VIN)
This number is usually found on the dashboard of your vehicle on the
driver's side, and is usually listed on the vehicle registration and title.
The VIN number is a combination of letters and numbers 17 characters in
length that can be used to identify the make, model, and year of your car.
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