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All About Personal Auto Insurance in Tennessee

Many of our customers at Elite Insurance Solutions know they are required by Tennessee law to carry an auto insurance policy; however, few are aware of the exact personal injury and property damage coverage limits. We would like to tell you exactly what the legal personal auto insurance coverage limits are in Tennessee as well as how you can increase your coverage to best protect you and your family on the road.

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What are the legal requirements regarding auto insurance coverage in Tennessee?

Every driver in the state must have a liability auto insurance policy to to cover the costs of injuries and/or damage you may cause to someone in a car accident. According to Tennessee Code Annotated (TCA) 55-12-102(12), the minimum limits of liability for the state of Tennessee currently are:

  • $25,000 for one injury or death
  • $50,000 for all injuries or deaths
  • $15,000 for property damage for one accident.

What are the penalties for not having liability auto insurance coverage?

If you are caught driving without proof of insurance, you face a Class C misdemeanor, and those penalties could include a fine up to $100, a suspended driver’s license, and a STOP placed on your automobile. This STOP keeps you from being able to renew the registration of your automobile.

How can I remove the STOP from my automobile?

You must reinstate your driver’s license to remove the STOP. If your case has been dismissed because you showed your proof of insurance before your court date, you must also send your proof of insurance to the Tennessee Department of Safety by mail or by fax.

Will there be any penalties on my insurance?

Whenever you lose your driver’s license because of a conviction, you must file an SR-22 proof of insurance with the state department of safety. An SR-22, unfortunately, causes your auto insurance to be quite costly. Your SR-22 can be filed for five years; however, it can be canceled in three years if you have had no other suspensions requiring more SR-22s.

Additionally, if you are considered a “high risk driver” by the state because of a poor driving record, you can be refused standard auto insurance. However, since it is legally required in order to drive, residents have the right to apply for the Tennessee Automobile Insurance Plan if they have been denied by at least one carrier. This insurance plan may be quite costly, which is why you should work with an agent at Elite Insurance Solutions as we can help you look for another carrier who will provide you with basic liability coverage.

What are other auto insurance options to add on to the basic coverage?

Of course, you can increase your liability coverage to higher amounts. Auto insurance experts recommend that the ideal coverage amounts are $100,000 per person for bodily injury, $300,000 per accident for bodily injury, and $100,000 per accident for property damage. You can also choose from these options: collision, comprehensive, uninsured motorists, medical payments, and rental car. If you have a loan or a lease on an automobile, your lender may require you to carry both collision and comprehensive coverage on top of the legal minimum as part of your loan or lease agreement.

Have more questions about the personal auto insurance requirements in Tennessee? Contact Elite Insurance Solutions to speak with one of our agents about the limits and other options.

Life Insurance: Five Reasons Why It Is So Important

You may think, “Why do I need life insurance? I’m not even 40 years old yet!” Or, you may think life insurance is not necessary if you do not have children. However, a life insurance policy is an important component of a good financial plan. No matter how young you are, you are going to die one day, and a life insurance policy can give you financial peace of mind. As a matter of fact, the younger you are, the cheaper your policy will be. Death is inevitable, and having a life insurance policy in place can help your devastated loved ones deal with the aftermath of your passing. At Elite Insurance Solutions, our agents can work with you to create a life insurance policy customized to fit your situation, and we can help you adjust your policy as your life changes over the years. We would like to share with you five reasons why life insurance is so important to have.

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  1. Your family and loved ones will be protected when you die. Life insurance is a necessity if your family depends on your paycheck for financial support. Your policy will support your loved ones in the place of your income. Particularly important for parents with small children, a life insurance policy will guarantee financial security for children. You should also keep in mind that enough money should be allotted to hire someone to do the daily household chores like cooking, cleaning, laundry, child care, and other needs.
  2. You can create an inheritance for your loved ones. Even if you will not have enough assets to leave money to your children and other loved ones, according to the financial advice website, the Payoff Blog suggests you can still set your children up for a secure financial future by buying a life insurance policy to create an inheritance.
  3. You can use your life insurance policy to pay off debts and other expenses. To not leave your loved ones with a financial burden, your life insurance policy can be used to pay off debts such as your mortgage, car loans, and credit card bills. The expenses that will arise at the time of your death, including funeral and burial costs, can also be covered by your life insurance policy. This will keep financial issues from compounding the emotional distress your loved ones will be experiencing after your death.
  4. You can add financial security with a life insurance policy. All parents want their children to be financially secure when they become adults. Additional coverage to a life insurance policy can provide your kids with the tuition for college as well as help them out during major life events like getting married, having children, and starting a business.
  5. A life insurance policy can give you peace of mind. Knowing that your loved ones will be provided for financially after your death can be the most important thing about having life insurance. Since death can be unpredictable, the security of a life insurance policy can alleviate your worries about what will happen to your family after you die, no matter when that time comes.

If you would like to buy a life insurance policy, contact Elite Insurance Solutions. Our agents are experienced in creating the perfect policy to best fit your family.

By Randy Hulett on October 15th, 2014 | Tagged with: Tags: , , , , , | Leave a Comment