What Does Auto Liability Insurance Cover?

What is Auto Liability Insurance?

Auto liability insurance is designed to cover the costs of damages or injuries that you cause to others in an accident. Think of it as financial protection for other people and their property if you’re found at fault. It doesn’t cover your own car or injuries—that’s where other coverages, like collision or medical payments, come into play.

What Does Liability Insurance Cover?

Liability insurance is split into two main parts:

1. Bodily Injury Liability (BI):
   This covers medical expenses, lost wages, and even legal costs if you injure someone in an accident.

   • Example: If you rear-end another driver and they require medical treatment, your BI coverage would help pay their hospital bills or missed work.

2. Property Damage Liability (PD):
   This helps cover the cost of repairing or replacing someone else’s property, like their car, fence, or mailbox, if you’re responsible for the damage.

   • Example: If you accidentally hit a parked car or damage someone’s garage, PD coverage would handle the repair costs.

What Are the Minimum Liability Limits in Tennessee?

In Tennessee, the state requires the following minimum liability coverage:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident (if more than one person is injured)
• $25,000 for property damage

While these limits meet the legal requirements, they might not be enough in a serious accident. At Hutsenpiller Insurance, we often recommend higher limits to ensure you’re fully protected from out-of-pocket expenses.

Why Is Liability Insurance Important?

Without liability insurance, you would be personally responsible for paying damages or medical bills if you cause an accident. These costs can add up quickly—hospital bills, lawsuits, and property damage repairs can easily total tens of thousands of dollars or more.

Liability coverage not only protects you financially but also ensures you’re meeting your legal obligations as a driver in Tennessee.

How Much Coverage Do You Really Need?

The minimum limits are a starting point, but they might not be enough if you’re involved in a major accident. For example, if you cause a crash that results in $40,000 in medical bills but only have $25,000 in BI coverage, you’d be responsible for the remaining $15,000.

To better protect yourself, we recommend:

• $100,000/$300,000 or higher for bodily injury
• $100,000 or more for property damage

These limits give you added peace of mind and protect your savings, home, and other assets.

How We Can Help

At Hutsenpiller Insurance, we’re here to help you find the right liability coverage for your needs and budget. We’ll walk you through your options and make sure you’re protected—whether it’s adjusting your limits or bundling your policies for extra savings.

If you have questions about your auto liability insurance or want a free review of your current policy, give us a call or stop by our office in Mt. Juliet or Gallatin. We’re here to help you stay safe on the road and protect what matters most.