Tennessee is not a pure no-fault state. Instead, it operates under a modified no-fault system, meaning there are some exceptions to the general rule. This can be confusing, so let's break down what that means for drivers in Tennessee.
What is a No-Fault Insurance System?
In a pure no-fault system, after a car accident, each driver files a claim with their own insurance company, regardless of who caused the accident. Your insurance covers your medical bills and lost wages, regardless of fault. You can only sue the other driver in limited circumstances, such as for significant injuries.
How Does Tennessee's Modified No-Fault System Work?
Tennessee's system allows drivers to choose between two types of coverage:
-
Basic Reparations Benefit (BRB): This is the minimum required coverage in Tennessee. It covers your medical expenses and lost wages up to a certain limit, usually around $10,000. You must file a claim with your own insurance company. BRB does not cover pain and suffering, unless there's a specific exception outlined below.
-
Additional Coverage: You can purchase additional coverage beyond the BRB to increase your benefits. This would provide more compensation for medical bills and lost wages.
When Can You Sue the Other Driver in Tennessee?
Even with BRB coverage, there are situations where you can sue the at-fault driver:
-
Threshold Injury: If your injuries meet a specific threshold, such as permanent disability, significant disfigurement, or death, you can sue the at-fault driver for additional damages beyond what your BRB covers, including pain and suffering and other non-economic losses. This is commonly known as a "serious injury" threshold. The exact definition of a "serious injury" can be complex and is often disputed.
-
Property Damage: If the other driver's negligence caused significant property damage (beyond the damage to your vehicle), you can sue them.
What are the Advantages and Disadvantages of Tennessee's System?
Advantages:
-
Faster Claim Processing: Filing a claim with your own insurance company is often quicker and simpler than pursuing a lawsuit against the at-fault driver.
-
Lower Insurance Premiums (Potentially): The potential for fewer lawsuits might lead to lower premiums, although this isn't always guaranteed.
Disadvantages:
-
Limited Coverage: The BRB coverage limits can be inadequate for significant medical expenses or lost wages.
-
Complexity: The rules surrounding the "serious injury" threshold can be complicated and difficult to navigate. Legal counsel may be necessary to determine if your injuries qualify.
What if I'm Uninsured or Underinsured?
If you're involved in an accident with an uninsured or underinsured driver, your own uninsured/underinsured motorist (UM/UIM) coverage will help. This is separate from your BRB and should be considered a critical component of your auto insurance policy in Tennessee.
How Do I Choose the Right Coverage?
Choosing the right coverage depends on your individual risk tolerance and financial situation. Consulting with an insurance professional can help you determine the best level of coverage to protect yourself and your family.
Can I still file a claim against the other driver's insurance if I choose BRB?
While you file your initial claim with your own insurance, your insurer may, on your behalf, pursue reimbursement from the at-fault driver's insurance company. This is called subrogation. This process can get complicated, so it's important to work closely with your insurance provider.
This information is for general guidance only and does not constitute legal advice. Always consult with a legal professional or insurance expert for specific advice regarding your situation.
