Auto Insurance Obligations In Tennessee: What You Need To Know

Yes, auto insurance is mandatory in Tennessee. The state requires all drivers to carry a minimum amount of liability insurance, which includes bodily injury and property damage coverage. Tennessee is an at-fault state, meaning the driver deemed responsible for an accident is liable for paying for any resulting damages and losses. The minimum coverage requirements in Tennessee are $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $15,000-$25,000 for property damage per accident. Driving without insurance in Tennessee is illegal and can result in fines, license suspension, and other penalties.

Minimum auto insurance requirements in Tennessee

Tennessee requires all drivers to have some form of financial responsibility, which is usually met by carrying car insurance. The minimum coverage limits are $25,000 for bodily injury liability per person and $50,000 per accident, along with $15,000 for property damage per accident. This is often written as 25/50/15 or referred to as a split limit, indicating the three separate coverage amounts.

Bodily injury liability covers the medical costs of those injured in a car accident, including ambulance services, surgeries, and rehabilitative services. It may also cover funeral expenses. Property damage liability covers the cost of damage to another's property, usually the other driver's car, but it can also include buildings or fences.

Tennessee drivers may choose to reject uninsured/underinsured coverage in writing, but it is recommended to keep this coverage. Uninsured motorist bodily injury coverage pays for your medical bills if you are in an accident with an uninsured driver, regardless of who is at fault. Uninsured motorist property damage coverage is available in Tennessee and pays for repairs to your car following an accident with an uninsured or underinsured driver.

While liability coverage is the only insurance required by the state, a bank or lien holder may require additional coverage if your vehicle is financed. Collision coverage pays for damage to your vehicle in an accident, regardless of fault, and comprehensive coverage pays for non-collision damage, such as theft, fire, or natural disasters.

Penalties for driving without insurance

Tennessee has strict penalties for driving without insurance. Driving without insurance in Tennessee is a Class C misdemeanour punishable by a fine of up to $300. If you are caught driving without insurance, you will be required to pay this fine, and you may also have your vehicle towed. Your driver's license and registration will be suspended until you can provide proof of insurance and pass the driver's test again. Repeat offenders may also need to complete a defensive driving course before their license is reinstated.

If you are caught driving without insurance in Tennessee, the police will give you 15 days' notice to show proof of insurance. If there was no accident, you will need to pay the state's commissioner of safety $50, as well as a $65 reinstatement fee.

If you are involved in an accident while driving without insurance in Tennessee, you could face significant financial consequences. You will be responsible for covering any injuries or damage caused by the accident, and you may be sued by the other party, which would result in additional costs for court and legal fees. You could also face a Class A misdemeanour and pay up to $2,500 in fines, as well as face jail time.

It is important to note that driving without insurance in Tennessee can also impact your future insurance premiums. Your insurer will need to file an SR-22 form on your behalf, which will remain on file for three years and may result in increased premiums during this time as you are seen as a risky driver.

Additional auto insurance coverage options

Tennessee law only requires liability insurance for drivers to be considered legal. However, there are several additional coverage options that drivers can add to their insurance policies for further protection. Here are some of the most common optional coverages available in Tennessee:

• Collision Coverage: This pays for repairs to your vehicle if you collide with another driver or object (excluding animals). While not required by state law, collision coverage may be mandated by lenders or banks if your vehicle is being financed.
• Comprehensive Coverage: Comprehensive coverage pays for repairs to your vehicle for non-collision damages, such as theft, weather damage, and collisions with animals. Together, comprehensive and collision coverage are often referred to as "full coverage."
• Roadside Assistance: This covers various services if your vehicle breaks down, such as towing, battery jumps, and flat-tire changes. Some insurance companies may also include fuel delivery or reimburse you for roadside assistance costs if you pay out of pocket.
• Medical Payments: This coverage pays for medical and funeral expenses for you and your passengers up to a specified amount, regardless of who is at fault in an accident.
• Uninsured/Underinsured Motorist Coverage: This protects you if you are in an accident with a driver who does not have insurance or does not have sufficient insurance to cover the damages. It covers both bodily injury and property damage.
• Rental Car Reimbursement: If your vehicle is damaged in an accident, this coverage will pay for a rental car until your car is adequately repaired.
• Custom Parts and Equipment Coverage: This coverage pays for repairs or replacements of custom parts or equipment added to your vehicle, such as a stereo, custom wheels, or a paint job.
• Gap Coverage: If your vehicle is totalled or stolen, there may be a gap between what you owe on your vehicle and its market value or insurance payout. Gap insurance covers this difference.
• Vanishing Deductible: With this add-on, your deductible decreases during each renewal period you drive without accidents, tickets, or claims. However, this may only be available for premium insurance plans.
• Accidental Death Coverage: This add-on covers funeral costs and associated losses in the event of a death resulting from a car accident.

Tennessee's insurance verification system

Tennessee requires all motorists to have a minimum limit of car insurance to be considered legal drivers. This insurance is to cover liability, including bodily injury per person and per accident, and property damage per accident. Tennessee is an at-fault state, meaning the driver who caused the accident is responsible for covering the damages.

To enforce this, Tennessee has an electronic insurance verification system. This system matches vehicle registration information with auto insurance policy information provided by insurance carriers. If the system cannot confirm coverage for a vehicle, it will be marked as "unconfirmed", and the owner will be notified by the Department of Revenue. The owner will then be directed to a website where they must provide proof of minimum liability insurance or another form of financial responsibility. If the owner does not respond to the initial notice, they will receive subsequent notices. Failure to comply with these notices could result in fines and the vehicle's registration being suspended.

Tennessee's status as a fault state

Tennessee is an at-fault state, which means that the driver found responsible for an accident is held legally liable for any injuries or damages caused. The insurance company will pay out up to the at-fault driver's policy limit. Tennessee's status as a fault state is significant because it determines how insurance companies handle claims and payouts.

In a fault state, the insurance company of the at-fault driver will pay for the damages incurred by the other driver. This is in contrast to no-fault states, where drivers involved in an accident must file a claim with their own insurance company, regardless of who caused the collision. Tennessee's at-fault system places the responsibility for compensation on the driver who caused the accident, and their insurance company.

Tennessee's fault laws are based on the principle of "comparative negligence". This means that a certain percentage of blame will be assigned to each driver, depending on how their actions contributed to the accident. For example, if Driver A was driving the wrong way and hit Driver B, but Driver B was distracted by their phone, a jury might decide that Driver A was 90% at fault and Driver B was 10% at fault.

In Tennessee, any driver found to be 50% or more at fault is legally barred from recovering any damages in a personal injury lawsuit. This is known as the "50% rule" or the "modified comparative negligence system". If a driver is found to be 49% or less responsible for the accident, they may still receive compensation, but it will be reduced by the percentage of fault assigned to them. For example, if a driver is found to be 10% at fault, their final settlement will be reduced by 10%.

Tennessee's at-fault laws have important implications for drivers in the state. It means that insurance companies will determine fault and assign a percentage of negligence to each driver involved in an accident. This will directly impact the compensation amount that can be recovered. Tennessee's at-fault status also means that drivers can file a claim with their own insurance company, the at-fault driver's insurance company, or file a personal injury lawsuit against the at-fault driver directly.

Frequently asked questions