Why You Need Insurance in Tennessee!

Financial Responsibility Laws
Every state has a financial responsibility law that requires proof of financial responsibility when a person has been involved in an  automobile  accident, has been convicted of a serious offense( drunk driving) or failed to pay a judgement from a previous accident. Failure to provide proof  of finacial responsibility may result in the loss of license, vehicle registration or both.

Financial responsibility laws require minimum limits of liability. States vary in the limits required, and residents must insure vehicles at limits o lower than those stipulated. An example of a typical requirement is 25/50/15( State of Tennessee) which stands for:

$25,000 coverage available for bodily injury per person per accident

$50,000 coverage available  for bodily  injury for all persons per accident; and

$15,000 coverage available  for property damage to other's property

Assets Exposed in the Event of a Judgement

In Tennessee, you are required by state law to carry 25/50/15 liability coverage amounts for auto insurance. This amount of coverage is the minimum amount that you can carry to be insured by law but most cars today average about $15,000 MSRP price.  Meaning? That most accidents usually involve more than one car and  if two cars are in an accident, both cars will need to be repaired unless one or both are totalled out.  As the paragraph above mention,  with minimum limits you have $15,000 for property damage to other's property and if the average car cost $15,000 well you do the math. If you are involved in a two car accident, you don't have enough money to cover it and then you are open to lawsuits and seizures! I dont mean the physical ones either.

In Tennessee, if a judgement has been rendered against you and you dont have the physicall cash on hand  to pay for the entire amount then you may subject to levy, lien or seizure. Those assets can be real property, autos, liquid assets, future wages and personal property.

Real Property : Primary residence if value exceeds $5,000. If residenced owned jointly  with spouse, at risk if value exceeds $7,500. If owned by someone who is 62 years or old or greater, at risk if  value exceeds $12,500

Autos: Personal autos are at risk if value exceeds $4000

Liquid Assets: Cash on hand as well as cash held in a financial institution such as checking accounts, savings accounts, money market funds, and certificates of deposits are at risk for levy or lien or seizure. Investments in stocks, bonds, and mutual funds are at risk for levy or lien or seizure. (Note: Determination as to the possible levy or garnishment of public assistance funds, disibility insurance funds, funds issued frim charity, spousal support, unemployment, child support, veteren's benefits, life insurance proceeds or qualified retirement accounts or pension plans under Section 401(a), 403(a), 403(b), 408 or 408A of the Internal Revenue Code of 1986 may be restricted by the State or Federal Law.)

Future Wages: The lesser of 25% of disposable earnings for a week or the amount of disposable earnings for a week that exceeds 30 times the federal minimum hourly wage may be garnished under court order.

Personal Property: Personal property over the aggregate value of $4000 is subject to execution, seizure or attachment.

As you notice that pretty much anything that you own can be taken from you if you dont have enough money to cover the expenses, so it is imperative that you take a look at your insurance limits and also your needs. Assest protection is the key. We at Farmers, Troy Fleming's Farmers Insurance Group in particular, are into protecting and increasing your assets. We don't want see you or your family suffer any phyisical or financial setback from being under insured and facing an impossible financial deficit to cover. When you think of financial safety and security, think Troy Fleming's Farmers!!!

Call me so that I may help your Family ...865.691.0292

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