(800) 253-1482Liability vs. Full Coverage Car Insurance in Tennessee
Summary: Tennessee drivers have several auto insurance options, but it's important to understand the difference between liability vs full coverage. Liability covers damages to others but won’t protect your vehicle. Full coverage, a term for bundled policies, typically combines liability, collision, and comprehensive insurance for broader protection. While Tennessee law only requires liability, full coverage offers additional benefits like gap insurance and roadside assistance. Though full coverage costs more, it includes deductibles that affect both premiums and out-of-pocket expenses. Comparing quotes from different insurers helps find the best coverage for your needs. Estimated Read Time: 6 mins
Table of Contents:
- The Difference Between Liability vs Full Coverage Insurance in Tennessee
- Do You Need Liability or Full Coverage in Tennessee?
- Additional Protection Options For Liability Only vs Full Coverage in Tennessee
- How Much Cheaper Is Liability vs Full Coverage in Tennessee?
- Compare Quotes for Liability and Full Coverage in Tennessee
Everyone has different needs and drivers have a lot of different things to protect themselves against both on and off the road. Knowing how liability vs full coverage affects your coverage is important. Below, we’re breaking down both coverage options and how they help protect drivers in Tennessee.
The Difference Between Liability vs Full Coverage Insurance in Tennessee
When weighing liability vs. full coverage, key differences include cost, coverage scope, financial responsibilities, and when each is required.
Both options have their benefits, but drivers should carefully consider their risks and needs before choosing.
In Tennessee, car insurance isn’t one-size-fits-all—understanding your options ensures you select coverage that works best for you. Here’s a closer look at both options and how they protect you:
Liability Coverage
In Tennessee, liability coverage covers others' medical expenses and property damage if you're at fault but doesn’t protect your own vehicle or cover risks like uninsured motorists or weather-related damage.
Full coverage adds broader protection against these perils, making it a valuable option for comprehensive peace of mind.
Full Coverage
Full coverage isn’t just one type of insurance—it’s a package that includes things like liability, collision, and comprehensive coverages.
This gives you more protection than basic coverage, and you can add extra options to fit your needs.
For example, you can increase your liability limits, add insurance for medical payments, or get coverage for accidents with drivers who don’t have enough insurance.
You can also add gap coverage, rental car insurance, and roadside assistance.
Full coverage provides more protection than liability insurance and can be customized to suit what you need.
Full Coverage vs Liability Deductibles
When comparing full coverage vs liability insurance, one key difference is deductibles.
Liability coverage doesn’t have deductibles, while comprehensive and collision coverages do, ranging from $200 to $2,000.
Higher deductibles lower your premiums but increase out-of-pocket costs after an accident.
Choosing the right deductible can help balance affordability and protection, ensuring you stay covered against a wider range of risks.
Do You Need Liability or Full Coverage in Tennessee?
The decision between liability vs full coverage comes down to your unique needs and how much financial risk you’re comfortable taking.
One option may be right for you but for another driver, it could be the wrong protection for their vehicle.
It’s important to look at individual factors, such as how old your vehicle is, its current value, and whether or not you are financing or leasing it.
While Tennessee law requires liability insurance to cover damages you might cause to others, full coverage is optional.
However, if your vehicle is financed or leased, full coverage is typically required by your lender to safeguard their investment.
Full coverage is a smart choice for newer, high-value vehicles, providing greater financial security in the event of an accident or damage.
On the other hand, drivers with older, fully paid-off cars might find liability-only insurance to be a budget-friendly option if they’re prepared to cover their own repair costs.
Understanding your situation and weighing the costs and benefits of both coverage types will help you choose the best fit for your needs and peace of mind.
Financing or Leasing
Lenders almost always require full coverage to protect their investment if you're financing or leasing a vehicle, making it a standard loan condition.
Even if you'd prefer to only have liability-only coverage, be prepared to purchase full coverage if you finance or lease your car.
New Vehicle
When deciding on liability vs full coverage car insurance, your vehicle’s age and value play a key role.
For vehicles ten years old or newer, full coverage is often the better choice due to the high costs of repairs and replacements.
Financing a vehicle usually requires full coverage, as it protects both the owner and the lender’s investment.
Full coverage shields against a wide range of risks, including accidents and weather-related damage, while liability insurance only covers damages to others.
For older, lower-value vehicles, liability-only may be a cost-effective option if you’re comfortable handling potential risks.
Balancing full coverage vs. liability depends on your car’s value and your financial situation.
Young Drivers
Young drivers in Tennessee are more prone to accidents, making full coverage a smart choice. With collision coverage, fault doesn’t matter—it helps cover repair costs.
If you do have inexperienced drivers on your policy, keep this in mind when comparing full coverage vs liability car insurance options as more protection can prevent expensive out-of-pocket expenses after an accident.
Financial Security
Imagine you’re driving home when another car unexpectedly hits you. The repair estimate for your vehicle comes to $10,000. If you only have liability coverage, you’re on the hook for the entire amount.
While full coverage might cost a bit more each month, the peace of mind it offers outweighs the potential financial strain of paying out-of-pocket.
When weighing the options between full coverage vs liability, consider whether a sudden expense like this could disrupt your budget or your ability to stay on the road.
Additional Protection Options For Liability Only vs Full Coverage in Tennessee
Auto insurance should be customized to fit your individual needs. Every driver faces different risks, and your coverage should reflect that.
When deciding between liability vs full coverage, consider the many risks you might encounter on and off the road and how you'd pay for losses that may occur.
Full coverage can include valuable add-ons, such as gap insurance and roadside assistance, which provide extra support in case of unexpected events.
Here are some key coverages all drivers should consider that go beyond liability, collision, and comprehensive insurance and how they protect you:
- Gap coverage in Tennessee will cover your note after an accident if your vehicle is determined to be totaled in the aftermath.
- Underinsured/uninsured motorist coverage protects you if a driver is at fault but doesn’t have enough protection or in cases in which the driver doesn’t have an auto insurance policy at all.
- Roadside assistance is there for you when you need a tow, your battery jumpstarted, minor repairs, your tire filled up, or other related services while on the road.
- Medical payments coverage will pay for healthcare expenses following an accident.
How Much Cheaper Is Liability vs Full Coverage in Tennessee?
In Tennessee, liability insurance is typically more than 30% cheaper than full coverage.
If you own your vehicle outright, you're not required to have full coverage, so choosing liability-only insurance can help lower your premiums and save monthly.
While it's a great way to save, keep in mind that you'll be taking on more risk with less coverage. It's all about balancing cost with the level of protection you're comfortable with.
Compare Quotes for Liability and Full Coverage in Tennessee
When comparing liability vs full coverage, it's crucial to also explore different insurance carriers in your area.
Tennessee has many top-rated companies, but premiums vary based on personal factors.
To save on premiums without sacrificing coverage, compare multiple policies and carriers to find the best deal.
Use our free, no-obligation auto insurance tool below to find and compare carriers near you and save or ask an agent for a personalized rate:
