Knowing Tennessee Car Insurance Facts
Even a decade ago, it was not mandatory for residents in the state of Tennessee to have a car insurance cover, especially if he had a sound credit record. However, over the past few years, a lot of transformation had taken place in the insurance laws of the state and it is now become obligatory for all licensed drivers in the state to have a minimum liability cover as directed by the state, like most other states in the US. This step was taken because of a significant increase in the accident rate in Tennessee by uninsured driver.
Currently, there are a number of car insurance companies in Tennessee, from where you can get competitive car insurance quotes. However, in order to get the best quotes, you should have a basic knowledge about the car insurance cover in the state. Here is what you are expected to know.
The minimum state requirements
All licensed drivers in Tennessee are required to have the minimum liability insurance. As per the state laws, for physical damage of one person, the amount is $25,000, for multiple injuries in a single accident, you can claim $50,000. The amount for property damage is pegged at $15,000.
For physical damage coverage, your insurance company will take care of your medical bills, loss of wages for a certain period of time and also the expenses of the other driver if he is a licensed driver in the state. There if the total bills cross the insurance coverage limit, you should pay from your own expenses. The property damage cover in the state pays for the damage caused to the other vehicles in the accident, as well as public property such as damage to street signs and fences. Here too, the insurer pays up to the stipulated coverage limit.
Optional coverage
In addition to the minimum liability insurance coverage, it is recommended that licensed drivers in Tennessee should get a comprehensive and collision insurance. This is to ensure that you and your vehicle are protected from the event of an accident. The comprehensive cover would pay for the vehicle damage caused by bad weather, theft and falling objects. You can also opt for uninsured motorist protection. This will take care of your medical expenses if you are hit by an uninsured driver.
Insurance penalties
The car insurance law in Tennessee follows a tort system. As per this law, in the event of an accident, the at-fault driver will be held accountable for the losses caused. If the individual fails to pay for the damages, he will be charged heavy fines followed by jail time and court cases.
The Department of Motor Vehicles in the state has clearly stated its laws on insurance cancellations, lapses, and non-renewals. It is mandatory to have your insurance at the time of registration. If you are traveling within the state without a valid insurance cover, your vehicle registration will be immediately cancelled and you have to pay a hefty fine. If your insurance premiums are not paid on time, it will be temporarily suspended.
