Tennessee is a tort state for car insurance purposes. When a car accident occurs, an investigation is done to determine which driver is at fault. That individual, through his or her insurance company, is responsible for paying for damages sustained by the occupants of the other vehicle.
Injured people can sue the at-fault driver to get compensation for their medical bills, lost wages and pain and suffering following the accident. They also have the right to sue for funeral expenses in the case of a fatal accident.
Drivers in Tennessee should consider their level of coverage very carefully. It may be tempting to buy a policy that meets the minimum level of coverage required by the state only, since that would seem the easiest and least expensive way to go. In truth, this decision may be very pricey if the accident in question is a serious one.
If a driver chooses to limit his or her liability coverage to the state minimum of $25,000 for a single accident victim and $50,000 for damages sustained by all injured people, this amount of funds available can be used up rather quickly. The insurance company will only pay out up to the policy limit. A better choice is for consumers to buy as much coverage as they can afford to guard against this possibility.