presented by: Gary Massey
Car insurance commercials and advertisements push their low-rate minimum coverage plans mainly for people who want to cut costs. Though the nation is slowing crawling out of its recession, the state of our economy still requires many people to cut costs where they feel they can. Cheaper is not always better, however, especially in terms of auto insurance coverage, according to Fox Business.
Although car insurance that meets the minimum state requirements is better than nothing, it is still a far cry from what a person may need if they were involved in a serious Tennessee auto accident. Even minor car accidents may result in losses that surpass minimum limits. Most states, including Tennessee, require that drivers of motor-vehicles obtain auto insurance with the following coverage levels: $25,000/injured person for bodily injury; $50,000/accident for bodily injury; and $10,000 for property damage, or 25/50/10.
If you are considering purchasing basic or minimum-coverage auto insurance, there are five facts to be aware of before you do so:
You may be held financially responsible for injuries caused to another party. Gary Massey Jr., an attorney with the Chattanooga law firm Massey & Associates, P.C., warns that if your insurance company does not pay the total amount in damages that you owe, the injured party could hold you personally liable for the remaining amount. You may even be forced to liquidate your assets.
More coverage does not necessarily cost much more. Contact an insurance professional to help you determine the right amount of coverage at a rate that best fits your financial situation.
Full coverage may not cover everything. According to Mr. Massey, even if a person purchases comprehensive and collision coverage in addition to the state minimums for liability, it may not be enough to cover their assets. If you are at-fault, you need additional liability insurance to pay out damages so that your assets are not at risk.
Minimum coverage may require extra fees for additional services. If you choose to purchase basic coverage, you may have to pay extra for services such as roadside assistance and rental car fees.
Basic or minimum coverage may be ideal for certain people. If you have a very low net worth and/or have no assets and live paycheck to paycheck, state minimum coverage makes sense.
If you or a loved one has been injured in a Tennessee auto accident caused by the negligent or reckless actions of another driver, you may be entitled to financial compensation for the losses associated with your injury. The experienced Chattanooga auto accident attorneys at Massey & Associates, P.C., can help you understand your legal rights and options. Call us today at (423) 396-0720 for a free case evaluation.
Gary Massey, Jr., is a well-known courtroom advocate practicing law in Chattanooga, Tennessee. Gary is a native of Tennessee who began practicing law in 1998. He graduated from Cumberland School of Law where he was ranked in the top 3% of his class and was an editor of the Cumberland Law Review.
