Auto Insurance Limits In Tennessee: What's The Deal?

Tennessee has specific minimum insurance coverage requirements for motorists. These requirements are in place to ensure that all motorists can cover the costs associated with injuries or damage caused in a traffic accident. So, what are the limits on auto insurance in Tennessee?

Liability coverage

The minimum liability coverage in Tennessee is 25/50/15, which means:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $15,000 property damage per accident

Bodily injury liability coverage will cover the medical costs associated with the car accident you caused, including funeral expenses in many cases. Property damage liability coverage, on the other hand, covers the cost of property damage caused by you, typically the victim's car but not limited to that.

If you cause an accident that results in substantial bodily injury or property damage, you will be required to pay for the remaining costs out of pocket if your insurance coverage is only at the state-mandated minimum. For example, if you damage multiple vehicles in an accident, the $15,000 property damage liability minimum will likely not be enough to cover the cost of repairs for all the vehicles. Similarly, if three people are injured in your accident, your insurance company will pay out a maximum of $25,000 with a cap of $50,000 for all three.

To avoid being stuck with the remaining costs, it is recommended that you get coverage above the state-mandated minimums. You can do this by increasing your coverage limits for a modest added premium.

Bodily injury liability

In Tennessee, motorists are required to have a minimum limit of car insurance to be considered legal drivers. This includes liability coverage, which is split into two types: bodily injury liability and property damage liability.

It is important to note that bodily injury liability coverage only pays out to the other driver and any passengers in their vehicle. It does not cover the insured driver's injuries or property damage. As such, it is recommended to purchase coverage limits higher than the state-mandated minimum to ensure adequate protection in the event of an accident.

In Tennessee, drivers may also satisfy the financial responsibility requirement by filing a cash deposit or a surety bond with the state instead of carrying car insurance. This option requires a deposit of $65,000 or a surety bond that can cover the same amount.

Property damage liability

The minimum amount of property damage liability coverage that Tennessee drivers must have is $15,000 per accident. However, this can easily be exceeded, especially when considering the average price of a new car. If you damage more than one vehicle in an accident, the $15,000 limit is still the maximum amount that your insurance company will pay out. Therefore, it is recommended that you consider purchasing higher limits to fully protect your assets. Available limits vary by insurer.

Collision coverage

The cost of collision coverage varies depending on personal factors such as age, gender, marital status, and driving record, as well as details about the vehicle and location. It is usually written with a deductible that applies separately to each occurrence, with deductibles typically ranging from $500 to $1,500.

While collision coverage is optional, it is worth considering for added protection. If you choose not to carry it and are involved in an accident, you will have to pay for repairs or a replacement vehicle out of pocket unless the other driver is at fault.

Uninsured motorist coverage

Tennessee has a fault-based system for financial responsibility in the event of losses suffered from a car accident. This means that whoever is at fault for the accident is responsible for any resulting harm. If the at-fault driver has insurance, their provider will absorb many of these losses. However, if the at-fault driver is uninsured, the injured party may be left without a way to cover their losses. This is where uninsured motorist coverage comes in.

When purchasing uninsured motorist coverage, it is important to remember that this coverage is meant to protect you and your family members in the event of a crash with an uninsured or underinsured driver. The coverage can help to cover the costs associated with loss of earning potential, medical bills, and property damage. In Tennessee, you are required to have bodily injury liability coverage of $25,000 per person and $50,000 per accident, as well as property damage liability coverage of $15,000. Your uninsured motorist coverage limits should be equal to these liability coverage limits.

While it is possible to waive uninsured motorist coverage or select lower limits, it is not advisable to do so. If you are in a crash with an uninsured or underinsured driver and you don't have adequate coverage, you could be left with a hefty bill. It is always better to have the peace of mind that comes with knowing you are protected.

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