Tennessee Car Insurance and Umbrella Coverage

Car insurance customers in Tennessee can choose to beef up their liability protection by purchasing an umbrella policy. This type of policy is used to provide an extra layer of coverage over the insured’s policy limit for liability coverage.

Since Tennessee is a tort state for car insurance purposes, one driver will be found to be at fault if an accident occurs. That person (usually through his or her insurance company) is responsible for paying monetary damages to the occupants of the other vehicle who were injured. The at-fault driver has coverage up to the level of his or her policy coverage.

If the accident was a severe one, the at-fault driver’s policy limit may not be sufficient to fully compensate the accident victims for their injuries, rehabilitation expenses, pain and suffering and other economic losses. The umbrella policy kicks in at this point to provide additional coverage once the at-fault driver’s policy limit has been reached.

Before buying umbrella insurance coverage, do shop around before making your decision. Each insurance company sets its own premium rates and spending some time getting quotes from multiple providers can mean significant savings on the cost of coverage. Your current car insurance company may not offer umbrella coverage, but if it does, be sure to ask whether you would be entitled to a multi-policy discount by adding to your current level of protection.