Gap coverage, also known as guaranteed auto protection, is a type of insurance that provides financial protection for vehicle owners in the event of a total loss or theft of their car. Standard auto insurance policies typically cover the actual cash value (ACV) of a vehicle, which may be less than the outstanding loan or lease amount. In the unfortunate event of an accident or theft, the insurance payout is based on the car's depreciated value, leaving the policyholder responsible for the remaining balance on their loan or lease. This is where gap coverage comes into play.

Gap insurance bridges the "gap" between the insurance payout and the amount owed on the vehicle. It ensures that the policyholder is not left with the financial burden of paying off a loan or lease for a car they no longer possess. This type of coverage is particularly beneficial for individuals who finance or lease their vehicles, as the depreciation of a car's value is often steeper in the initial years. Gap coverage provides peace of mind by safeguarding against potential financial setbacks and allowing individuals to recover more easily from the financial impact of a total loss or theft of their vehicle. It is important for car owners to carefully assess their individual circumstances and consult with their insurance provider to determine if gap coverage is a suitable addition to their auto insurance policy.

The average cost of auto insurance in Tennessee can vary depending on several factors, including the driver's age, driving history, type of coverage, and the insurance company. On average, Tennessee has been considered to have relatively lower auto insurance rates compared to the national average. The state's insurance premiums are influenced by factors such as population density, traffic patterns, and the frequency of claims.

In 2021, the average annual cost of auto insurance in Tennessee was around $1,300 to $1,400, but it's crucial to note that individual rates may differ significantly. Younger drivers, individuals with less driving experience, or those with a history of accidents or traffic violations may face higher premiums. Additionally, the choice of coverage options, such as liability limits, comprehensive coverage, and collision coverage, can impact the overall cost.

It's essential for Tennessee residents to shop around and obtain quotes from multiple insurance providers to find the best coverage at a competitive rate. Insurance premiums can be influenced by various factors, and rates may have changed since my last update. Therefore, it's advisable to check with local insurance providers or use online tools to get the most accurate and up-to-date information on auto insurance costs in Tennessee.