How Tennessee’s Insurance Laws Impact Your Car Accident Claim
Car accidents often lead to uncertainty about how to recover financially. In Tennessee, the insurance system that governs car accidents plays a critical role in how victims pursue compensation. Talk to a Nashville personal injury lawyer about how the state’s fault-based system so you make informed decisions after a crash.
A Brief Look at Insurance Law in Tennessee
Tennessee is what’s known as a fault state (or “tort state”) for car accidents. This means that the driver can be found to be at fault for causing the collision, leading to financial responsibility for the resulting damages. Victims have the right to seek compensation for property damage, medical expenses, lost wages, and pain and suffering directly from the at-fault driver’s insurance company, or through a personal injury lawsuit if necessary.
By contrast, some states follow a “no-fault” system, where each driver’s insurance covers their own injuries regardless of fault. Tennessee has never adopted no-fault laws, which means proving liability is central to any car accident claim here.
While Tennessee has long operated under a fault-based system, the requirements for auto insurance coverage have shifted over time. For years, the minimum liability limits were set at levels that often fell short of covering serious accident costs. Currently, Tennessee drivers must carry at least:
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $15,000 for property damage
These minimums provide a baseline, but can be inadequate in serious crashes involving hospital stays, rehabilitation, or multiple injured victims. When damages exceed the at-fault driver’s coverage, victims may need to explore other options, such as uninsured/underinsured motorist (UM/UIM) coverage on their own policy or filing a lawsuit directly against the driver.
What the Fault System Means for Accident Victims
Because the state follows the fault model, accident victims generally have three options after a crash. One, they can file a claim with their own insurer, which may then pursue reimbursement from the at-fault driver’s insurance. Or, they may choose to file a third-party claim directly with the at-fault driver’s insurance company. Should neither of these options offer an appropriate level of relief, an injured party could file a lawsuit against the at-fault driver.
It’s also important to know that Tennessee applies a modified comparative fault rule. This means that if you are found to be 50% or more responsible for the accident, you cannot recover damages. Also, compensation could be reduced by your percentage of fault. For example, if you’re awarded $100,000 but found 20% responsible, you would receive $80,000.
Navigating Tennessee’s fault-based system can be challenging, especially when insurance companies try to minimize payouts or shift blame. An experienced Nashville personal injury lawyer has the skills necessary to investigate the accident and handle negotiations with insurers. Connecting with legal support can protect your financial future.
Has the need to access funds from an insurance policy complicated your settlement efforts? Connect with the injury lawyers at Calhoun Law, PLC. Attorneys are available to ensure all potential sources of compensation are considered, including UM/UIM coverage. Reach out today for a confidential consultation.
