Tennessee Auto Insurance Law: Understanding Age-Related Requirements

Tennessee has strict auto insurance laws, and drivers are required to have a minimum level of car insurance, known as liability insurance, before driving. This insurance covers financial responsibility in case of an accident, with minimum coverage of $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident, and $15,000-$25,000 for property damage liability per accident. While age is not a specific factor in Tennessee's auto insurance laws, younger, less experienced drivers often face higher insurance premiums due to their increased risk profile.

Tennessee's minimum auto insurance coverage

Tennessee requires drivers to have a minimum level of auto insurance coverage. This is to ensure financial responsibility in the case of an accident. Tennessee is an 'at-fault' state, meaning the driver who caused the accident is responsible for covering the damages.

The minimum coverage requirements in Tennessee are:

• $25,000 for bodily injury liability per person
• $50,000 for bodily injury liability per accident
• $25,000 for property damage liability per accident

The monthly cost of state minimum car insurance in Tennessee can be as low as $29. The average annual cost for state minimum coverage is $345.

Tennessee drivers may also satisfy the law by filing either a cash deposit or a surety bond with the state. This must be in the amount of $65,000.

It is important to note that collision and comprehensive coverage are not mandated by state law. However, if you finance or lease a vehicle, lenders typically require both coverages to safeguard their investment.

Proof of financial responsibility

In Tennessee, drivers must provide proof of financial responsibility in the event of a car accident. This is usually done through car insurance, with a minimum coverage of $25,000 for bodily injury liability per person, $50,000 for total bodily injury liability per accident, and $25,000 for property damage liability per accident. Tennessee is a "fault" state, meaning the driver deemed responsible for the accident will have their insurance cover the damages.

Tennessee drivers can also satisfy the law by filing either a cash deposit or a surety bond with the state. A cash deposit of $65,000 with the Department of Safety (DOS) will result in the commissioner issuing a certificate of insurance, which must be shown when registering a vehicle or during a traffic stop. A surety bond, issued by a surety company licensed in Tennessee and valid for at least a year, can also be filed with the DOS. In the event that the driver cannot pay for damages, the surety company will pay on their behalf, with the driver reimbursing the company later.

Digital proof of insurance can be shown through the MyTN mobile app. Physical copies of insurance cards or other documentation are also accepted.

Failure to provide proof of financial responsibility can result in a fine of up to $300, vehicle towing, and suspension of the driver's license.

The state's financial responsibility law

Tennessee's Financial Responsibility Law requires vehicle owners to show proof of their ability to cover financial losses resulting from any car accident they might cause. This law is typically complied with by purchasing liability car insurance coverage.

The minimum liability coverage in Tennessee is:

• $25,000 for bodily injury per person
• $50,000 for bodily injury per accident
• $15,000 to $25,000 for property damage per accident

If you cause an accident, liability insurance will cover the injuries and damages of the other driver and their passengers, but not your own. This coverage is usually divided into two types: bodily injury liability and property damage liability. Bodily injury coverage pays for the medical costs associated with the accident, including funeral expenses in many cases. Property damage liability covers the cost of property damage caused by the policyholder.

While liability coverage is the only insurance required by the state of Tennessee, a bank or lien holder could require you to carry extra coverage if your vehicle is being financed, such as comprehensive and collision coverage.

Tennessee actively monitors whether or not vehicles are insured. If you are caught driving without insurance, you may face a variety of penalties, including fines and the loss of your driving privileges.

Penalties for driving without insurance

Tennessee requires all drivers to carry a minimum amount of car insurance, and driving without it can lead to severe consequences. If you are caught driving without insurance in Tennessee, you could face a ticket for driving without insurance and may be subject to other penalties, depending on your driving record.

• Having your vehicle towed
• A suspended driver's license until you can provide proof of insurance and pass the driver's test again
• A suspended vehicle registration until you provide proof of insurance
• Fines of up to $300 for the first and subsequent offences
• SR-22 requirement for three years, which could increase your insurance premium
• Retaking the driver's license exam
• Jail time of up to 11 months and 29 days

If you are caught driving without insurance more than once, you could face even more severe penalties. Repeat offenders may need to complete a defensive driving course and pass the exam before their licenses are reinstated.

If you are involved in an accident while driving without insurance in Tennessee, you could face additional penalties on top of those for driving without insurance. If you are at fault, you will be responsible for paying out-of-pocket for any injuries or damage caused by the accident, including medical bills and repairs. You may also be sued by the other party, resulting in additional costs for court and legal fees.

Optional auto insurance coverage

In Tennessee, drivers are required to have minimum auto insurance coverage that includes $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident, and $25,000 for property damage liability per accident. However, there are several optional add-on coverages that drivers can choose to include in their auto insurance policy for enhanced protection.

Collision Coverage

Collision coverage is an optional add-on that pays for repairs to your vehicle when physical damage occurs due to a collision with another vehicle or object. This coverage is subject to a deductible, and it is particularly valuable if you have a newer or higher-value vehicle.

Comprehensive Coverage

Comprehensive coverage is another optional coverage that pays for repairs to your vehicle, but for damage caused by non-collision events such as theft, fire, or natural disasters. This coverage is also subject to a deductible.

Uninsured and Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage protects you in the event of an accident where the other driver doesn't have insurance or doesn't have sufficient insurance to cover your damages. This coverage is available for both bodily injury and property damage claims.

Medical Payments Coverage

Medical payments coverage pays for medical expenses incurred by you and your passengers, regardless of who is at fault in an accident. This coverage ensures that you and your passengers can receive the necessary medical care without worrying about the financial burden.

Accident Forgiveness

Accident forgiveness is an optional coverage offered by some insurance providers, such as Nationwide, where your auto insurance rates will not increase after your first at-fault accident. This can provide peace of mind and help you avoid higher premiums after a single mistake.

Roadside Assistance Coverage

Roadside assistance coverage, offered by companies like Nationwide, provides assistance in various situations, such as fuel delivery, lockout services, and jump-starts. This coverage is available at different levels, allowing you to choose the option that best suits your budget.

Loss of Use/Rental Car Expense Coverage

If your vehicle is unusable due to a covered loss, loss of use/rental car expense coverage can help pay for a rental car or other transportation expenses while your vehicle is being repaired. This coverage ensures that you can still get around even when your car is out of commission.

When considering optional auto insurance coverages in Tennessee, it's important to assess your individual needs, the value of your vehicle, and your risk factors. These optional coverages can provide valuable financial protection and peace of mind in the event of an accident or other unforeseen circumstances.

Frequently asked questions