Are you sufficiently covered? The minimum automobile liability limits in Tennessee are 25/50/15. What does this mean? This means you have $25,000 per person for injury or death. Each occurrence is limited to $50,000 for injury or death. And the last number means the limit is $15,000 for property damage for one occurrence. Let’s break it down even further with an example. You are in an accident in which you hit a car worth $50,000 with three people in that car. There is a death and two injuries in that car. Do you think a twenty-five thousand dollar limit per person is sufficient coverage for a person’s death claim? Most likely, not. Other bad news, there is only $25,000 remaing for the other two persons injured. Not $25,000 each, but $25,000 split between the two injured. Please remember the fifty thousand dollar is per occurence. Who do you think is responsible for the medical expenses and any pain and suffering claim after your insurance is used up? You are. And let’s say that fifty thousand dollar car is totaled. Your insurance will not pay more than fifteen thousand dollars for any property damage. Who is going to pay for the thirty-five thousand dollar difference? You are! You can see how the minimum limits are not sufficient enough to cover your accident and how you could be paying on this one mistake for the rest of you life. Please remember, claims are paid out on an individual basis and this is just an example to show you just how minimum Tennessee state’s auto liability limits are.
Accidents happen every day. We are reminded of how easily things can turn while driving down Tennessee highways and see a blinking sign showing year to date automobile fatalities in Tennessee. Check with your independent agent about your coverages. It may not cost much more to increase your liability limits. An extra 20 or 40 a year may be worth it in the long run.