Insurance Questions, Answered
Straight answers to the questions we hear most from families and business owners across Tennessee. Every policy is different, so if your situation needs a closer look, start a quote or call a licensed agent at (865) 687-5140.
Auto insurance · Home and renters insurance · Umbrella and life insurance · Business insurance · Claims, billing and your policy
Auto insurance
What is the minimum car insurance required in Tennessee?
Tennessee requires liability coverage of at least $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage, often written 25/50/25. Most drivers should carry more, because a serious accident can cost far more than the minimums.
What does full coverage mean?
It isn't an official coverage. People usually mean liability plus collision and comprehensive, which cover damage to your own car. Lenders require collision and comprehensive on financed and leased vehicles.
What's the difference between collision and comprehensive?
Collision pays for damage to your car from hitting another vehicle or object. Comprehensive pays for almost everything else: theft, hail, falling trees, fire, vandalism and hitting a deer.
Do I need uninsured motorist coverage?
We strongly recommend it. It pays for your injuries and your passengers' when the at-fault driver has no insurance or not enough. Tennessee insurers must include it unless you reject it in writing.
Is Tennessee a no-fault state?
No. Tennessee is an at-fault state. The at-fault driver's insurance pays for the other driver's injuries and damage, and you can recover only if you're less than 50% at fault.
Does my insurance cover someone else driving my car?
Usually, yes. Coverage generally follows the car when you give someone permission to drive it. Anyone who lives with you and drives regularly should be listed on the policy.
When should I add my teen driver?
Call us when your teen gets a learner's permit. Some carriers want permit drivers listed and some don't, and it's better to know before an accident than after.
Does car insurance cover a rental car?
Your own liability coverage usually extends to a rental car in the U.S. Collision and comprehensive usually extend too if you carry them on your own car. Rental reimbursement coverage pays for a rental while your car is being repaired after a covered claim.
What is gap insurance?
If your car is totaled, insurance pays its actual cash value, which can be less than you still owe on the loan or lease. Gap coverage pays the difference.
Why did my rate go up when I didn't have a claim?
Carriers reprice based on statewide claim trends, repair and medical costs and vehicle values, not just your record. Ask us for a rate checkup. We'll review your discounts and details and tell you whether another company fits better.
What is an SR-22?
A form your insurance company files with the state to prove you carry at least the minimum liability coverage, usually after a DUI, a suspension or driving uninsured. See SR-22 insurance.
Home and renters insurance
How much homeowners insurance do I need?
Enough dwelling coverage to rebuild your home at today's construction costs, which is often different from its market value or what you paid. Then enough personal property and liability coverage for your situation.
What's the difference between replacement cost and actual cash value?
Replacement cost pays what it costs to repair or replace with new. Actual cash value subtracts depreciation, so an older roof or a five-year-old TV pays out much less.
Does homeowners insurance cover flooding?
No. Flood needs a separate policy through the National Flood Insurance Program or a private flood carrier. Flood policies usually have a 30-day waiting period, so buy before the forecast turns.
Does homeowners insurance cover water damage?
Sudden and accidental water damage, like a burst pipe, is usually covered. Gradual leaks, flooding and water that backs up through a sewer or drain usually aren't unless you add the right coverage.
What is a wind and hail deductible?
Many Tennessee policies have a separate deductible for wind and hail claims, often a percentage of your dwelling coverage. On a $400,000 home, a 2% deductible is $8,000.
Does homeowners insurance cover earthquakes?
Not usually. Standard policies exclude earthquake damage. East Tennessee sits in a seismic zone, and most carriers offer earthquake coverage as an add-on.
Will a new roof lower my home insurance?
Often, yes. Roof age is one of the biggest rating factors. Tell us the year and material of your new roof and we'll update your policy and check for a better rate.
Do I need renters insurance?
Your landlord's insurance covers the building, not your belongings or your liability. Renters insurance covers both, plus a place to stay after a covered loss. See renters insurance.
Does my homeowners policy cover my Airbnb?
Usually not. Most homeowners policies limit or exclude regular short-term rental activity. A short-term rental policy covers the building, guest liability and lost rental income.
How fast can I get insurance for a home closing?
Usually within a day or two once we have the address, closing date and lender details. Older homes or homes in flood zones can take longer, so start as soon as you're under contract.
Umbrella and life insurance
What is umbrella insurance?
Extra liability coverage that sits on top of your home and auto policies, usually in $1 million layers. It pays when a serious lawsuit goes past your underlying limits. See umbrella insurance.
Who needs an umbrella policy?
Families with teen drivers, pools, trampolines, dogs, boats or rental properties, and anyone with savings and income worth protecting from a lawsuit.
Term or whole life insurance?
Term covers you for a set number of years and costs the least for the most coverage. Whole life lasts your whole life and builds cash value, at a higher price. Many families start with term. See life insurance.
How much life insurance do I need?
Enough to pay off debts, replace your income for the years your family would need it, and cover goals like college. Many people land between 10 and 15 times their income, but your situation matters more than a rule of thumb.
Is life insurance through work enough?
Often not. Group coverage is usually limited and may end when you change jobs or retire. An individual policy stays with you.
What is long-term care insurance?
It pays for care if you can no longer handle daily activities on your own, at home, in assisted living or in a nursing home. It's easier to qualify while you're healthy. See long-term care.
Business insurance
What insurance does a small business need?
Most start with general liability and commercial property, often bundled as a business owner's policy (BOP). Add commercial auto for business vehicles, workers' comp once you have employees, and professional liability if you give advice or services.
What is general liability insurance?
It covers claims that your business caused bodily injury or property damage to someone else, like a customer slipping in your store or a crew damaging a client's home.
What's the difference between general liability and professional liability?
General liability covers physical injury and property damage. Professional liability, also called errors and omissions, covers financial harm from a mistake or missed detail in your professional work.
What is a business owner's policy (BOP)?
A package that combines general liability and commercial property, often with business income coverage, usually for less than buying them separately. Many small offices, stores and restaurants qualify.
What is a certificate of insurance?
A one-page summary proving your business carries insurance. General contractors, landlords and clients often require one, sometimes naming them as an additional insured. We send most the same day.
Do I need commercial auto insurance?
If a vehicle is owned by the business, used mainly for work, carries tools for jobs or is driven by employees, you likely do. Personal auto policies can deny claims during business use. See commercial auto and trucking.
Is workers' comp required in Tennessee?
Yes for most employers with five or more employees, counting part-time workers, and for construction and coal mining employers with one or more. See Tennessee workers' comp.
What is cyber liability insurance?
It covers costs after a data breach or cyberattack: notifying customers, restoring systems, lost income and lawsuits. Any business that stores customer information or takes card payments should consider it.
What is a surety bond?
A guarantee to a third party, often a government agency or project owner, that your business will meet its obligations. Contractors, notaries and many licensed trades need bonds.
Claims, billing and your policy
What should I do after a car accident?
Check for injuries and call 911 if anyone is hurt. Take photos, exchange insurance information and get the police report number. Then call us. See our car accident checklist.
Should I file a claim for small damage?
Compare the repair cost to your deductible and think about the effect on future rates. Call us first. We'll talk it through before you decide.
Will filing a claim raise my rates?
It can, especially an at-fault auto accident or several property claims in a few years. Not-at-fault accidents and some weather claims may not. It depends on the carrier.
How do I pay my bill?
You pay your insurance company directly. Call us and we'll point you to the right online payment page or app for your carrier.
How do I get my insurance ID card?
Most carriers have an app or online account with your ID card. We can also email or text it to you. See ID cards.
Do you charge fees?
No. We don't charge agency or broker fees. You pay the insurance company's premium, and the company pays us.
What does an independent agent do differently?
An independent agent works with many insurance companies instead of one. We ask the questions that matter, match you with the company that fits, and stay with you through renewals and claims.
Get a quote
Tell us what you need and a licensed local agent will follow up. Start your insurance quote or call (865) 687-5140, Monday to Friday, 9 to 5.