Tennessee laws require drivers to carry a minimum amount of liability coverage, but those numbers are just a starting point. Carrying only the minimum amounts of required liability coverage leaves you unprotected against physical damages and medical costs for yourself or other drivers under your policy. Increasing your liability limits and purchasing additional coverages can help you remain financially stable after an accident, even if you are liable for damages.
Contact Tennessee Auto Insurance Agency to learn more about how having the right insurance coverage can help protect your financial future.
What Does It Mean To Be Underinsured?
You may have auto insurance that meets the mandatory minimum limits of your state and the minimum limits required by your lender. However, if you need to make a claim, you may find that those limits aren’t high enough to provide the financial help you need.
In Tennessee, drivers must purchase a policy with at least $25,000 of coverage for each injury or death per accident and $50,000 for total injuries or deaths per accident. The property damage liability minimum is $15,000 per accident.
Suppose you are at fault in an accident that totals someone else’s vehicle, involves multiple vehicles or causes serious injuries and you have only the minimum amount of property damage coverage. In such an instance, you could be held liable for paying costs that exceed your liability policy’s limits.
How To Know if You Are Underinsured
The best way to figure out if you have enough insurance coverage is to contact your agent. They can talk with you about your current policy and answer any questions about how your insurance works to protect you financially.
An umbrella insurance policy can help pay costs that exceed the limits of your auto and homeowners insurance policies. Your agent may recommend that you purchase additional coverage to help protect your property in addition to raising your liability insurance limits.
What To Do if You Think You Are Underinsured
Unfortunately, many people only realize they are uninsured when it’s time to make a claim or when they are legally liable for third-party injuries or property damage that exceeds the limits of their policy.
If you are concerned about not having enough insurance to cover the potential costs of an accident or mishap, contact the agents at Tennessee Auto Insurance Agency today. We will review your current insurance, talk with you about your insurance needs and help you get the right types and amounts of insurance coverage.