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When a car crash involves an out-of-state driver, victims often expect the claim process to be handled fairly. Unfortunately, that is not always what happens. Insurance adjusters from other states usually attempt to apply their home-state laws and policy provisions instead of adhering to Tennessee law, which governs the crash location. The result can be delayed settlements, underpaid claims, or outright denials that violate Tennessee’s legal standards.
At The Gold Law Firm, our Memphis car accident attorneys have frequently handled cases like these. We know how to identify when an adjuster is misapplying the law, and we take swift action to protect our clients’ rights.
When Adjusters Ignore Tennessee Law
A recent case handled by our firm illustrates how easily out-of-state adjusters can make mistakes.
Our client was injured in a Memphis crash caused by a Texas driver insured by State Farm. The adjuster applied a Texas policy provision that limited consideration of medical bills to the amount remaining after health insurance payments, rather than the total amount billed. This meant that even though our client had nearly $48,000 in medical expenses, the adjuster considered only about $5,000 — the balance left after her health insurance made payments.
That might be permissible under Texas law, but it is not how Tennessee handles personal injury damages. In Tennessee, juries and courts typically consider the full amount of medical expenses, not just the patient’s remaining out-of-pocket balance. This difference can significantly impact settlement value, often resulting in tens of thousands of dollars in reduced compensation if misunderstood or overlooked.
Why the Difference Matters
The misunderstanding stemmed from the interaction between two insurance policies: one from the at-fault driver and another from our client’s own underinsured motorist (UIM) coverage. The at-fault driver’s Tennessee Allstate policy had limits of $25,000 per person and $50,000 per accident. Because there were multiple injured parties, the total $50,000 limit had to be divided among five people.
Our client had additional coverage under her own State Farm UIM policy, which could provide up to another $25,000 once the at-fault policy limits were exhausted. However, State Farm refused to offer that coverage because its out-of-state adjuster believed the company only needed to consider the portion of the medical bills left after health insurance payments.
The result was a long delay, unnecessary litigation, and significant frustration for the injured person, all because the adjuster failed to recognize that Tennessee law controls claims for Tennessee crashes.
How Our Attorneys Corrected the Error
Our firm immediately filed suit against the at-fault driver to preserve our client’s rights. Once State Farm’s attorney reviewed the actual medical documentation and Tennessee law, the company reversed course and offered the full $25,000 UIM policy limit.
This outcome should have been reached months earlier. The only reason it wasn’t was because the adjuster relied on out-of-state rules instead of understanding Tennessee’s damage principles.
Lessons for Tennessee Drivers
This case highlights a crucial truth: insurance adjusters are not always correct in understanding the law. Their training and guidelines vary by state, and they may not be familiar with how Tennessee evaluates damages, liability, or policy coverage. When that happens, injured people must have a knowledgeable local attorney who can step in, clarify the law, and hold insurers accountable.
At The Gold Law Firm, we routinely deal with adjusters and defense lawyers from across the country. We are familiar with the relevant Tennessee statutes, case law, and court procedures that govern fair compensation. We also know how to challenge insurers that try to undervalue medical expenses or misinterpret their policy language.
Protecting Tennessee Policyholders from Bad Adjusting Practices
Insurance companies have the right to investigate claims, but they also have a legal duty to treat policyholders fairly and comply with the law where the crash occurred. When they apply out-of-state provisions or utilize internal policies that conflict with Tennessee’s public policy, they can be held accountable through litigation.
Our firm’s intervention in this case ensured that our client received the compensation she deserved, not the lowball amount the adjuster initially offered. It also sent a clear message: out-of-state insurers must respect Tennessee law when their drivers cause harm in the state.
Contact The Gold Law Firm
If you were injured in an accident with an out-of-state driver or are struggling with an insurance adjuster who is undervaluing your claim, contact The Gold Law Firm for help. We know how to identify bad claims practices, navigate complex coverage issues, and hold insurers accountable for following Tennessee law.
Contact our Shelby County personal injury attorneys today by calling or texting (901) 244-5003 or contact us online to schedule a free, confidential consultation. We proudly represent clients throughout Memphis and across Tennessee, fighting to ensure every injured person receives full and fair compensation under the law.
