It's definitely less favorable but I'm still on the fence about whether the below justifies that large of a policy. It's probably dependent on the risk tolerance of the individual and the confidence in their defensive driving abilities.
Unlike Texas, Tennessee allows wage garnishment for ordinary civil judgments, though with limits.
Protected (Exempt) Assets and Income
The following are generally shielded:
Homestead (Primary Residence): Up to $35,000 in equity (home value minus liens like mortgages) for an individual owner using it as their principal residence. For joint owners (e.g., spouses) using it as their principal place, up to $52,500 total, divided equally if claimed in the same proceeding. If only one joint owner is involved, it's $35,000. The exemption lasts for the owner's life and passes to a surviving spouse or minor children if they continue using it as their home. It can't be waived without joint spousal consent if married, but doesn't protect against property taxes, purchase-money debts, or waived secured debts.
Personal Property (Wildcard Exemption): Up to $10,000 total in debtor's equity interest in any owned personal property you select, including money, bank deposits, vehicles, furniture, electronics, household goods, cash, or other items. This is a flexible "wildcard" you choose to protect what's most important, but items bought or maintained with fraudulent funds don't qualify.
Absolutely Exempt Personal Items (No Dollar Limit, Don't Count Toward $10,000 Wildcard): All necessary wearing apparel and trunks/receptacles to hold it; family portraits and pictures; family Bible and school books.
Tools of the Trade and Health Aids: Up to $1,900 in implements, professional books, or tools used in your trade or profession (or a dependent's). Professionally prescribed health care aids for you or a dependent (full value).
Awards and Payments: Up to $15,000 total aggregate for: crime victim's reparation ($5,000 max); personal bodily injury payments ($7,500 max, excluding pain/suffering or pecuniary loss); wrongful death payments ($10,000 max, if you were a dependent). Payments for loss of future earnings (to the extent necessary for support). Liquid assets/stocks/bonds to cover child support obligations (if deposited into court or seized for that purpose).
Retirement and Pensions: Most are fully exempt, including rights to Social Security, veterans' benefits, disability/illness/unemployment benefits, or pensions vesting due to disability. Certain stock bonus, pension, profit-sharing, annuity, or similar plans (with restrictions if not qualified under specific IRC sections). State, federal, or local public pensions.
Income and Benefits:
Wages: Exempt up to the greater of 75% of disposable earnings or 30 times the federal minimum wage per week, plus $2.50 per week for each dependent child under 16 living with and supported by you.
Fully exempt: Social Security/SSI, unemployment compensation, Families First/AFDC/welfare, local public assistance, veterans' benefits, workers' compensation, alimony or child support (if due more than 30 days after claiming exemption).
Bank accounts: Fully protected if containing only exempt funds (e.g., the above benefits); otherwise, you can use the $10,000 wildcard.
Assets the Plaintiff Could Potentially Access
Non-exempt assets can be targeted after judgment (typically after 10-30 days), via court-ordered seizure, garnishment, or liens:
Home equity exceeding homestead limits.
Personal property or cash/bank funds over the $10,000 wildcard (e.g., extra vehicles, luxury items, collectibles).
Wages beyond the exempt portion (up to 25% of disposable earnings can be garnished after court judgment).
Non-homestead real estate (e.g., rental or vacation properties).
Business assets not qualifying as tools of trade.
Mixed bank funds (keep exempt income separate to avoid commingling issues).
In practice, creditors may file an abstract of judgment to lien non-exempt real property for 10 years (renewable), impacting credit and sales. If only exempt assets exist, collection often fails. You can challenge garnishment by claiming exemptions or requesting installment payments
“There is no red.
There is no blue.
There is the state.
And there is you.”
“As government expands, Liberty contracts” - R. Reagan
