Is Tennessee a No-Fault Accident State? What Does This Mean for You?

Each state has its own auto insurance rules. While some states operate under a fault-based framework, others take a no-fault approach that relies on personal injury coverage rather than seeking compensation from the driver who caused the crash.

Is Tennessee a no-fault accident state? The answer is no. In the following blog post, we'll discuss Tennessee's fault-based system and the importance of understanding this legal framework when filing a claim after a crash.

Is Tennessee a No-Fault Accident State? Understanding Tennessee's Status

Tennessee uses a fault-based system for car accidents. Simply put, the person who caused the crash is responsible for medical bills, property damage, and other expenses.

Rather than requiring drivers to cover these expenses out of pocket, the state mandates a minimum amount of coverage. As a driver in Tennessee, you must carry $25,000 per person per accident with a $50,000 limit per accident and $25,000 in coverage for property damages.

Under the state's comparative fault rule, you can file a claim with the insurance company of the driver who caused the accident as long as your own share of the blame doesn't exceed 50%. You won't qualify for compensation if you're more than 50% responsible. If your liability share is not zero, your award will be reduced to reflect your role in the crash.

If insurance coverage is not sufficient, you can get compensation through a personal injury lawsuit. It is a common option when crashes cause significant injuries that result in loss of quality of life, pain and suffering, and other types of damage.

Implications for Drivers in Tennessee

The state's fault-based framework means drivers can be on the hook for thousands of dollars in damage if they cause a crash. Even though the state requires insurance, the minimum coverage isn't always enough and can result in drivers losing their savings. Purchasing more than the state's minimum requirement can be a smart decision.

Another implication of Tennessee's system is that establishing liability after a crash is crucial. After filing a claim, an insurance adjuster will review the proofs you submitted and determine who is to blame for the crash.

However, because this adjuster works for the insurance company that is responsible for paying the claim, you might find yourself with a denied or reduced claim. It may be helpful to work with a lawyer to file a claim, negotiate with the insurance company, and appeal a decision if needed. An experienced lawyer can use proofs like police reports, testimonies from witnesses, and insights from expert witnesses to build a strong argument supporting your absence of liability.

You should report the crash promptly and ensure that all the information you share is accurate. Failing to report the crash after it happens can make filing an insurance claim and establishing liability challenging.

Fault-Based Systems: Pros and Cons

Tennessee's fault-based framework has pros and cons.

The advantages include:

• Affordable insurance rates. Compared to the national average, car insurance in Tennessee costs $670 less annually. The state's fault-based system contributes to lower rates since drivers don't need to carry extensive personal injury coverage.
• High limits on the damages you can seek. An insurer won't give you more than the amount of the policy. Still, you can seek additional damages by filing a personal injury lawsuit and get up to $750,000 in non-economic damages. This cap increases to $1 million if the accident results in catastrophic injuries.
• Holding unsafe drivers accountable. Drivers who engage in unsafe behaviors and cause crashes face consequences. This system creates a strong incentive to drive safely to prevent accidents.

However, Tennessee's fault-based system has a few downsides:

• Getting a payout is a complex process. It can take months before an insurer will approve your claim and issue a payment.
• It is in the insurer's best interest to look for ways to deny your claim or demonstrate a higher degree of liability on your part to reduce the amount of the payout.
• Unfortunately, Tennessee is one of the states with the highest rate of uninsured drivers. Obtaining compensation from an insured driver usually involves a lengthy legal process.

The best way to address these potential drawbacks is to seek legal help. An experienced lawyer knows how to navigate this complex system, file a strong insurance claim on your behalf, and ensure you get fair compensation.

Navigate Tennessee's Fault-Based System With the Help of a Lawyer

Is Tennessee a no-fault accident state? The answer is no. Tennessee uses a fault-based system, meaning that the driver who causes the crash is responsible for the damages.

If you were in an accident, your priority should be to contact the insurance company of the driver who caused the crash and file a claim. It is helpful have a lawyer by your side to establish liability and ensure you get compensation in a timely manner.

Accident.com can help by matching you with a local Tennessee lawyer. Fill out our online form to get started.

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