What is the new auto insurance law in Tennessee?

It’s important to understand that Tennessee is a “fault” state if you’re involved in an automobile accident there. This type of approach identifies which party was at fault for the accident and who was not so whoever is responsible is legally obligated to pay for any damages or losses resulting from their actions.

auto insurance in Tennessee

Tennessee established a law in 1977 requiring proof of auto liability insurance to present it at all times. Liability insurance is essential to cover any damages or injuries that you may cause to another person due to a vehicle accident. In Tennessee, the legal minimum limits for automobile insurance are as follows:

  • $25,000 for each injury or death in an accident
  • $50,000 for the total number of injuries or deaths caused by an accident
  • $15,000 in property damage

However, these restrictions typically do not cover property damage or injuries caused by the careless motorist. Instead, their purpose is to protect pedestrians, passengers, and other drivers.

The following insurance products may be of interest to you if you desire additional protection:

  • Collision insurance is a must-have. This insurance policy covers any damage to your vehicle as a result of the accident.
  • Coverage for medical expenses. In the event of an accident, this insurance will help you pay for your medical bills if you cause an accident.
  • Uninsured motorist protection (UM protection). If you are a part of a car accident with an uninsured or underinsured driver, this will assist you in recovering the costs related to the disaster.
  • Coverage for a rental car: This will assist you in defraying the cost of a rental automobile while your vehicle is on service or need repaire.
  • Comprehensive insurance coverage: If you choose this option, you will be covered for damages that are not the result of an accident, such as vandalism or weather conditions.

The Governor Signs a Law Increasing the Strictness of Penalties

Tennessee law requires that all drivers carry auto liability insurance if they are a part of a vehicle accident. Efforts to limit the incidence of car accidents involving uninsured persons resulted in the signing of a new law by Tennessee Governor Bill Haslam in July 2015, which imposes stringent penalties on uninsured drivers. This new legislation has resulted in the following changes:

  • An increase in the amount of misdemeanor is acceptable. If you break Tennessee’s financial responsibility statute (for example, by failing to provide evidence of insurance), you will now be fined $300, an increase from the previous $100 fine.
  • A state-approved insurance verification program. This program will be used to identify uninsured drivers by gaining access to car registration information.
  • An increase in fines levied on drivers who refuse to get auto insurance under the scheme. Suppose a driver is driving without their driver insurance. In that case, the maximum punishment is the seizure of their license plates, suspension of their registration, and the payment of a $300 re-registration charge.
  • Approval for the towing of automobiles by the police. If you fail to comply with the financial responsibility law, the police can push your car away from you.

According to state statistics, there were more than 40,000 car accidents in Tennessee in 2014 in which one or both drivers did not have auto insurance. Representative William Lamberth of Tennessee, a proponent of the legislation, stated that the new law represents a “major change to our statute.”

Options for collecting insurance after an accident

According to federal regulations, if there is a specific sort of traffic collision you must report it to law enforcement. Such as one that results in injuries, causes a fatality, or produces more than $400 in damages. People who get any bodily injury in an automobile accident have a variety of insurance alternatives available to them, such as:

  • Filing a claim against a third party. This sum is submitted directly to the vehicle insurance company of the at-fault driver in the accident.
  • Claiming their automobile insurance. The victim’s insurance company covers the claim, and the at-fault driver’s insurance company reimburses the victim.
  • A claim for personal injury may be filed if you have been injured. In a civil court of law, the plaintiff is attempting to recover damages from the at-fault driver.

What if you get injured in an accident in Tennessee?

If you get any injury in an automobile accident, you have one year to file a lawsuit in Tennessee. Assume you or a loved one gets any injury in a car accident a careless driver cause. If this is the case, we can help you get the monetary compensation you deserve. In order to schedule a free and confidential consultation with one of our attorneys, please call us at 855-913-1570. Filling out our online form will also allow you to seek extra information.

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