When purchasing auto insurance, there are many important factors to consider while finding coverage. Drivers should resist the urge to spend less on insurance in an attempt to save money. In the event that an accident occurs, those with inadequate insurance coverage end up paying more in the end.

Liability coverage often contain two major components. Both carry separate limits and should be examined individually when purchasing coverage.

Bodily Injury (BI) coverage helps pay for another person’s physical injuries that occur as a result of a vehicle accident. These would be injuries for which you are held legally responsible due to a car accident. It can include another’s medical expenses, loss of income, pain and suffering, and potential legal fees.

This type of coverage has two limits. First being the per person limit and second being the per accident limit. In Tennessee the minimum coverage required is $25,000 per person and $50,000 per accident. So if more than two, three, or four people were involved in the accident, your insurance would only cover $50,000 regardless.

Consider the potential medical needs an accident would require for a family of five driving a mini van. From doctors visits, physical therapy, and potential time away from work, the cost begins to rise. It is recommended that drivers carry either $100,000/$300,000 or $250,000/$500,000.

Uninsured motorists also present a liability to Tennessee drivers. The Insurance Information Institute estimates roughly 20 percent of Tennessee motorists are uninsured, even though state law requires a minimum car insurance. It is recommended that motorists carry an Uninsured Motorist Bodily Injury coverage of at least $25,000 per person and $50,000 per accident.

The second component of liability coverage is Property Damage (PD). Property Damage helps pay for the damage you cause to another vehicle(s) or other type of property. It can include both personal property, i.e. someone’s yard, or commercial property, i.e. traffic light.

Coverage for PD can be increased up to $100,000 for typically less than a movie ticket. Don’t leave yourself exposed. Tennessee state law requires at least $15,000 per accident. Uninsured Motorist Property Damage is also recommended with at least $15,000 per accident.

Unfortunately, knowing exactly what type of insurance and the coverage limits a driver should carry is not one-size-fits-all. It will depend on factors such as the type of car, driving history, and age.  Start with talking to the insurance company and requesting quotes before making a final decision.