Insuring Your Vehicle In Tennessee

To insure a vehicle in Tennessee, you must be able to show proof of your ability to cover financial losses resulting from any car accident you might cause. The most common way to do this is to purchase liability car insurance coverage. Tennessee law stipulates that drivers must carry at least liability coverage, which includes bodily injury and property damage coverage. The minimum liability coverage requirements in Tennessee are $25,000 bodily injury per person, $50,000 bodily injury per accident, and $15,000 or $25,000 property damage per accident. While liability coverage is the only insurance required by the state, a bank or lien holder could require you to carry extra coverage if your vehicle is being financed.

Minimum insurance requirements

In the state of Tennessee, motorists are required to have a minimum limit of car insurance to be considered legal drivers. The minimum insurance requirements in Tennessee are as follows:

• Liability coverage: Tennessee law requires drivers to carry liability coverage as the only insurance mandated by the state. Liability coverage includes bodily injury liability and property damage liability. The minimum liability coverage in Tennessee is 25/50/15, which means:
• $25,000 bodily injury per person: This covers medical costs for a single person injured in a car accident you cause, with a maximum of $50,000 per incident.
• $50,000 bodily injury per accident: This is the total amount that your insurance company will cover for bodily injuries you cause in any one accident, with a per-person limit of $25,000.
• $15,000 property damage per accident: This covers the total dollar amount of damages to another person's property caused by you.

It is important to note that liability coverage does not cover your injuries or damages to your property. It only covers the other driver and their property.

While liability coverage is the minimum requirement, a bank or lien holder may require additional coverage if your vehicle is being financed, such as comprehensive and collision insurance. Comprehensive coverage pays for repairs to your vehicle for non-collision incidents, such as theft or weather damage. Collision coverage, on the other hand, pays for repairs to your vehicle if you collide with another object or vehicle.

• Uninsured motorist coverage: Tennessee also requires uninsured motorist coverage, which includes bodily injury and property damage. This coverage protects you if you are injured or your property is damaged by an uninsured or underinsured driver. The minimum requirements for uninsured motorist coverage are:
• $25,000 per person and $50,000 per accident for bodily injury.
• $25,000 per accident for property damage.

These minimum insurance requirements are essential for legal drivers in Tennessee, and it is important to carry proof of insurance at all times when driving.

Proof of insurance

In Tennessee, it is mandatory to carry proof of insurance (also known as proof of financial responsibility) at all times when driving. This can be verified through the Tennessee Insurance Verification application, where drivers can enter their license plate number and VIN (vehicle identification number) to check their motor vehicle liability policy.

Tennessee's Financial Responsibility Law (TCA 55-12-139) requires all motor vehicle owners to maintain proof of liability insurance coverage or a verifiable exemption. If the Tennessee Department of Revenue's Electronic Insurance Verification System (EIVS) is unable to confirm insurance coverage for a vehicle, a notice will be sent to the registered owner, directing them to DrivelnsuredTN to provide proof of minimum liability insurance or exemption.

The minimum insurance requirements for Tennessee are as follows:

• Bodily injury liability: $25,000 per person and $50,000 per accident
• Property damage liability: $15,000 or $25,000 per accident
• Uninsured motorist bodily injury: $25,000 per person and $50,000 per accident
• Uninsured motorist property damage: $25,000 per accident

While these are the minimum coverages required by the state, it is recommended to purchase additional coverage for added protection. Collision coverage and comprehensive coverage are optional but can provide valuable financial protection in the event of an accident or damage to your vehicle.

Types of liability coverage

To insure a vehicle in Tennessee, you must carry at least liability coverage. Tennessee law requires drivers to carry a minimum limit of car insurance. This means that if you cause an accident, liability insurance covers those injured or who suffer damages. However, liability insurance never covers your injuries or any damages to your property. It only pays the other driver.

There are two types of liability coverage that your insurance policy must include: property damage liability and bodily injury liability.

Property Damage Liability

This coverage safeguards your assets if you are found legally responsible for a covered accident. It covers any damage you may cause to the property or vehicle of another party. For example, if you are in an accident and damage another person's car, property damage liability will cover the cost of repairs to their vehicle. The minimum coverage for property damage liability in Tennessee is $15,000 per accident.

Bodily Injury Liability

This coverage safeguards your assets if you are found legally responsible for a covered accident and will cover certain expenses associated with bodily harm sustained by the other parties. It covers medical costs for injuries and may also include funeral expenses. The minimum coverage for bodily injury liability in Tennessee is $25,000 per person and $50,000 per accident.

Optional insurance coverages

While liability insurance is the only type of insurance that is legally required in Tennessee, there are several other types of insurance coverage that you may want to consider adding to your policy for additional protection. These optional coverages include:

Collision Coverage

Collision coverage pays for repairs to your vehicle if you collide with another vehicle or object (other than an animal). This coverage is subject to a deductible and is useful if you want protection against the costs of repairing your vehicle after a collision.

Comprehensive Coverage

Comprehensive coverage pays for repairs or damages to your vehicle that are not caused by a collision. This includes damage associated with weather, theft, fire, vandalism, glass breakage, and collisions with animals. Comprehensive coverage, along with collision coverage, is often referred to as "full coverage."

Roadside Assistance

Roadside assistance coverage can help if your vehicle breaks down while driving. Most insurance companies offer variations of this coverage, typically including services like fuel delivery, lockout service, jump-starts, and towing.

Medical Payments Coverage

This coverage pays for reasonable and necessary medical expenses or funeral costs for you and your passengers, regardless of who is at fault in the accident, up to the amount you choose.

Uninsured/Underinsured Motorist Coverage

This coverage protects you in the event of an accident where the other party is at fault and either doesn't have insurance or doesn't have enough insurance to cover the costs of the accident. It includes both property damage and bodily injury protection.

Accident Forgiveness

With this optional coverage, your insurance company may forgive your first at-fault accident and not raise your auto insurance rates as a result.

Loss of Use/Rental Car Expense Coverage

If your car is unusable due to a covered loss, this coverage helps pay for a rental car or other transportation expenses while your vehicle is being repaired.

Penalties for driving without insurance

Tennessee requires all drivers to carry a minimum amount of car insurance. Driving without insurance in Tennessee can result in various penalties, including fines, suspension of driving privileges, and even jail time. Here are the penalties for driving without insurance in Tennessee:

Fines and Fees

If you are caught driving without insurance in Tennessee, you may be charged with a Class C misdemeanour, which carries a fine of up to $300. Additionally, you may be required to pay a $65 restoration fee and a $50 fee for an SR-22 form, which your insurer must file on your behalf. The SR-22 form proves that you have car insurance and must be kept on file for three years. During this time, your insurer may increase your premium due to your higher-risk status.

License Suspension

Driving without insurance in Tennessee can result in the suspension of your driver's license. To reinstate your license, you may need to retake the driver's license exam and provide proof of insurance or financial responsibility. The Department of Revenue will send a notification giving you 30 days to respond with proof of insurance before any penalties are imposed.

Vehicle Towing

If you are unable to provide proof of insurance during a traffic stop, law enforcement officers have the discretion to have your vehicle towed. You will need to provide proof of insurance and pay impound and reinstatement fees to retrieve your vehicle.

Increased Insurance Premiums

Driving without insurance will result in you being classified as a high-risk driver, leading to increased insurance premiums. The SR-22 form, which is required after a driving violation, will also reflect poorly on your driving record and may contribute to higher insurance rates.

Jail Time

In Tennessee, driving without insurance is considered a serious offence, and multiple offences or failure to provide proof of insurance can result in jail time. If you are caught driving without insurance more than once, you may face even more severe penalties, including imprisonment.

Accident Consequences

If you are involved in an accident while driving without insurance in Tennessee, you will be held financially responsible for any injuries or damage caused. As Tennessee is an at-fault state, the person deemed at fault for the accident is required to pay all costs associated with injuries and property damage. You may be sued by the other party, resulting in additional legal fees. Additionally, you could face a Class A misdemeanour, with potential fines of up to $2,500 and jail time of up to 11 months and 29 days.

Frequently asked questions