What Is Full Coverage Insurance in Tennessee?

“Full coverage” is a term describing an auto insurance policy. It is not a legal or official designation, but a general understanding that a policy extends beyond basic legal requirements. While its precise meaning can differ, it generally signifies comprehensive protection against various scenarios, offering broader financial security for vehicle owners.

Tennessee’s Minimum Insurance Requirements

Drivers in Tennessee are legally required to demonstrate financial responsibility to operate a vehicle, typically by maintaining an auto liability insurance policy. Tennessee law specifies minimum liability coverage limits, often referred to as the “25/50/15” rule.

This rule mandates coverage of $25,000 for bodily injury liability per person involved in an accident you cause. It also requires $50,000 for total bodily injury liability per accident, covering all injured parties combined. Additionally, the law stipulates $15,000 for property damage liability per accident. Liability coverage is designed to cover damages and injuries you inflict upon others in an at-fault accident, but it does not cover your own injuries or damage to your vehicle.

Core Components of Common “Full Coverage”

Beyond state-mandated minimum liability coverage, “full coverage” typically includes two primary components that protect your vehicle: collision and comprehensive coverage. These are distinct types of protection designed for different kinds of incidents. Lenders often require these coverages when a vehicle is financed or leased.

Collision coverage addresses damage to your vehicle resulting from a collision with another vehicle or an object. This includes incidents like hitting a guardrail, a tree, or another car. When filing a claim, you typically pay a deductible, a pre-determined amount, before your insurance begins to pay for the repairs or replacement. Common deductible amounts range from $250 to $1,000, with higher deductibles often leading to lower premium costs.

Comprehensive coverage protects your vehicle from non-collision events. This includes damage from theft, vandalism, fire, natural disasters like hail or floods, or striking an animal. Similar to collision coverage, comprehensive policies usually involve a deductible that you pay before the insurer covers the remaining costs. Both collision and comprehensive coverages protect your investment in your vehicle.

Expanding Your Protection Beyond Core Components

While collision and comprehensive coverages form the foundation of “full coverage,” many drivers opt for additional types of protection. These supplementary coverages address specific risks and can provide further financial peace of mind.

Uninsured/Underinsured Motorist (UM/UIM) coverage offers protection if you are involved in an accident with a driver who has no insurance or insufficient insurance. This coverage can help pay for medical bills, lost wages, and property damage that the at-fault driver’s policy cannot cover. In Tennessee, UM/UIM coverage is optional.

Medical Payments (MedPay) coverage helps cover medical expenses for you and your passengers from a car accident, regardless of fault. This coverage assists with costs like doctor visits, hospital stays, and ambulance fees. It provides immediate access to funds for medical care.

Rental Car Reimbursement coverage assists with the cost of a rental vehicle while your car is being repaired after a covered incident. This helps if your vehicle is undrivable or requires extensive repairs, ensuring you maintain transportation.

Roadside Assistance provides services like towing, jump-starts for dead batteries, tire changes, or fuel delivery. This coverage helps drivers avoid out-of-pocket costs for emergency services during unexpected breakdowns.