Auto insurance can be a confusing topic for first-time drivers. There are lots of unfamiliar concepts, such as deductibles, and several types of coverage to consider. For instance, should you purchase only the state-mandated minimum liability coverage or choose full-coverage protection? Even if you’ll be spending the first few years attached to your parents’ auto policy, you’ll benefit from knowing how it all works. Here’s a primer to help you understand your options.

A New Driver's Guide to Auto Insurance

Liability Coverage

Most states require you to purchase a certain amount of liability insurance to pay for losses suffered by other drivers in a collision deemed to be your fault. In Tennessee, motorists must buy coverage of at least $25,000 bodily injury liability per person with a per-accident maximum of $50,000. You also need $15,000 of property damage liability and uninsured motorist coverage of $25,000 per person/$50,000 per accident. This pays for treatment of your—and your passengers'—bodily injuries if the other, at-fault driver is uninsured or doesn’t have enough coverage for medical treatment costs. Without it, you would be responsible for any amount above what the other driver’s insurance policy covers—and the entire amount if the driver is uninsured.

Full Coverage

No auto insurance carrier actually sells anything called "full coverage." It’s simply an informal term for a policy that includes comprehensive and collision coverage in addition to the required liability amounts. Collision coverage pays to repair or replace your car if it's damaged on the road, regardless of who is at fault. Comprehensive coverage pays for non-collision losses, including those due to fire, flood, vandalism, and theft. It’s not required by law, but if you have an outstanding auto loan, your lender will likely require you to purchase full coverage to protect their financial interest in the vehicle.

To speak with an experienced agent about your auto insurance options, contact Lafever Insurance Agency in Cookeville, TN. They have been assisting drivers in and around Putnam County for more than 30 years and can help you put together the perfect auto policy for yourself or your child. They also specialize in mobile home, motorcycle, and SR-22 insurance. Call them at (931) 526-3377 to request an affordable car insurance quote.