Insurance can feel complicated — full of jargon, fine print, and confusing numbers. But at its core, insurance is simple: it's a way to protect yourself from financial loss when something unexpected happens.
This guide breaks down the most common types of insurance in plain language so you can make confident decisions about your coverage. Whether you're shopping for the first time or reviewing what you already have, Southern Insurance Group is here to help.
Southern Insurance Group: As an independent agency, we shop multiple carriers to find you the best combination of coverage and price — not just what works for one company.
Auto insurance is required by law in Tennessee and most other states. It protects you financially if you're involved in a car accident — whether you caused it or someone else did.
Liability Coverage
This is the foundation of every auto policy and is required by law. Liability coverage pays for damage or injuries you cause to other people when you're at fault in an accident. It does NOT cover your own vehicle or your own injuries.
Tip: Tennessee's minimum limits are low. Many agents recommend higher limits to protect your savings and assets from a lawsuit.
Collision Coverage
Pays to repair or replace your vehicle after an accident — regardless of who was at fault. If you hit another car, a guardrail, or a tree, collision coverage takes care of your car. There is typically a deductible (the amount you pay before insurance kicks in).
Comprehensive Coverage
Covers damage to your vehicle from events other than collisions — things like theft, fire, hail, flooding, falling objects, or hitting an animal. Also subject to a deductible.
Tip: If your car is financed or leased, your lender almost certainly requires both collision and comprehensive coverage.
Uninsured/Underinsured Motorist (UM/UIM)
Protects you if you're hit by a driver who has no insurance — or not enough insurance — to cover your damages. Unfortunately, this is more common than you might think.
Medical Payments (MedPay)
Covers medical expenses for you and your passengers after an accident, regardless of fault. It can help fill gaps even when you have health insurance.
A deductible is the amount you agree to pay out of pocket before your insurance pays. For example, if you have a $500 deductible and your repairs cost $3,000, you pay $500 and your insurance pays $2,500.
Tip: Choose a deductible you can comfortably afford to pay on short notice.
Southern Insurance Group: We shop your auto coverage across multiple carriers to find the best rate for your specific profile. Text 'covermycar' to 615-616-8600 to get started.
Homeowners insurance protects your home and belongings from damage or loss, and also covers you if someone is injured on your property. If you have a mortgage, your lender requires it.
What a Standard Home Policy Covers
What's Usually NOT Covered
Tip: Tennessee homeowners near rivers or in low-lying areas should seriously consider a separate flood policy. Ask us about options.
Replacement Cost vs. Actual Cash Value
Tip: Replacement cost coverage costs a bit more but can be worth it significantly when it comes time to file a claim.
If you rent your home or apartment, your landlord's insurance does NOT cover your personal belongings or liability. Renters insurance fills that gap — and it's usually very affordable (often $15–$30 per month).
Southern Insurance Group: Renters insurance is one of the most affordable policies available. Call or text 615-616-8600 to get a quick quote.
Life insurance provides a financial safety net for your loved ones if you pass away. The policy pays a lump sum (the death benefit) to your beneficiaries, which they can use for anything — living expenses, mortgage payments, college tuition, or final expenses.
Term Life Insurance
Term life is the most straightforward and typically the most affordable type of life insurance. You choose a coverage amount and a term length (usually 10, 20, or 30 years). If you pass away during that term, your beneficiaries receive the death benefit. If you outlive the term, the policy ends.
Whole Life Insurance
Whole life insurance lasts your entire lifetime and also builds cash value over time that you can borrow against. Premiums are higher than term life, but they stay level for life.
How Much Life Insurance Do You Need?
A common rule of thumb is 10–12 times your annual income, but the right amount depends on your specific situation:
Tip: Life insurance is most affordable when you're young and healthy. The best time to buy is sooner rather than later.
Southern Insurance Group: We can walk you through term and permanent life options to find what fits your budget and goals. Contact us at team@sigtenn.com.
If you own a business, your personal insurance policies do not cover business-related losses. Commercial insurance protects your business assets, employees, and operations from a wide range of risks.
This is the most fundamental business coverage. General liability protects your business against claims of bodily injury or property damage caused to third parties — customers, vendors, or the general public.
Tip: Most commercial leases and client contracts require proof of general liability insurance before you can work.
A BOP bundles general liability and commercial property coverage into one convenient, often discounted policy. It's designed for small to medium-sized businesses and is typically more affordable than buying each coverage separately.
Personal auto policies do not cover vehicles used for business purposes. If your business owns vehicles, or if your employees use personal vehicles for work, commercial auto coverage is essential.
Workers' compensation covers medical expenses and lost wages for employees who are injured or become ill on the job. In Tennessee, most businesses with 5 or more employees are required by law to carry workers' comp coverage.
Also called Errors & Omissions insurance, professional liability covers claims that your professional services caused a client financial harm — even if you didn't make a mistake. If you provide advice, consulting, or professional services, this coverage is worth considering.
Southern Insurance Group: Commercial insurance needs vary widely by industry and business size. Contact us at 615-616-8600 to discuss your specific situation.
Farming is a unique business — your livelihood, your home, and your workplace are often all in one place. Standard homeowners and commercial policies typically don't cover the specialized needs of agricultural operations. Farm insurance is designed to bridge that gap.
Farm Property Coverage
Covers the physical assets of your farming operation:
Farm Liability Coverage
Protects you if someone is injured on your property or if your farming operations cause damage to others:
Crop Insurance
Crop insurance protects your income when crops are damaged or fail due to natural disasters, drought, floods, pests, or disease. There are two main types:
Tip: Crop insurance enrollment deadlines vary by crop and county. It's important to plan ahead — don't wait until planting season.
Livestock Coverage
Specialized coverage can protect your animals from losses due to:
Coverage can be arranged for individual high-value animals (horses, breeding stock) or on an herd basis.
Farm Equipment & Machinery
Modern farm equipment is expensive. Specialized equipment breakdown coverage or inland marine (equipment floater) policies can cover your machinery for:
Agribusiness & Farm Employees
If you have hired workers — seasonal or full-time — you may need:
Southern Insurance Group: Farm and agriculture policies are highly customizable. We work with carriers that specialize in Tennessee farm operations. Call 615-616-8600 to get a review of your current coverage.
There's an important difference between buying insurance from a captive agent (who only sells one company's products) and working with an independent agency like Southern Insurance Group.
We Work for You — Not the Insurance Company
As an independent agency, we represent multiple top-rated carriers. That means we can shop your coverage across companies to find the best combination of price, coverage, and service for your specific needs.
One Agency, Multiple Options
We're Here for the Long Haul
We're not just here to sell you a policy. We're here to review your coverage as your life changes, help you through the claims process, and make sure you're never over- or under-insured.
Southern Insurance Group makes it easy to get coverage, ask questions, or review your existing policies.
Southern Insurance Group, LLC | Website Development by EZLynx® • Copyright © . All Rights Reserved.