Auto Insurance In Tennessee: What's The Law?

Tennessee requires all drivers to carry a minimum level of car insurance, and driving without auto insurance is prohibited. The minimum insurance liability policy must include bodily injury liability, property damage liability, uninsured motorist bodily injury, and uninsured motorist property damage. The minimum coverage amounts are $25,000 per person and $50,000 per accident for bodily injury liability, and $15,000 or $25,000 per accident for property damage liability. Tennessee drivers must also carry proof of insurance and can face penalties, fines, and license suspension if they fail to do so.

Minimum insurance requirements

Tennessee requires all drivers to have some proof of financial responsibility, which can be demonstrated in a few ways. The most common way to meet this requirement is to have car insurance with at least the minimum coverage limits. Tennessee drivers may also satisfy the law by filing either a cash deposit or a surety bond with the state.

The minimum insurance requirements in Tennessee are as follows:

• $25,000 per person for bodily injury liability, with a total maximum of $50,000 per incident. Necessary medical treatments may include ambulance services, surgeries, and rehabilitative services.
• $25,000 per accident for property damage liability. This covers the cost of repairing property damage, usually to the other driver's car, but it can also include damage to a building or fence, for example.

It is important to note that these are the bare minimums required by Tennessee law, and purchasing higher limits is recommended to fully protect your assets in the event of an accident.

In addition to the minimum insurance requirements, Tennessee drivers should also consider adding other types of coverage to their policies for enhanced protection. These can include collision coverage, comprehensive coverage, roadside assistance, medical payments coverage, and uninsured motorist coverage.

Tennessee actively enforces these insurance requirements, and failure to provide proof of insurance can result in fines and the loss of driving privileges.

Proof of financial responsibility

Tennessee's Financial Responsibility Law requires all motorists to show proof of their ability to cover financial losses resulting from any car accident they might cause. This is known as "proof of financial responsibility" This can be done by purchasing liability car insurance coverage, which is the most common way to comply with the law. The minimum coverage limits in Tennessee are:

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

However, Tennessee drivers may satisfy the law by providing alternative proof of financial responsibility. This can be done by filing either a cash deposit or a surety bond with the state. The minimum coverage limits in this case are:

• $65,000 for bodily injury and death liability in total per accident
• $65,000 for property damage per accident

It is important to note that drivers must carry proof of coverage, such as an insurance ID card, at all times when driving. Failure to provide proof of financial responsibility can result in penalties such as fines, suspension of driving privileges, and even jail time in the event of an accident.

Penalties for driving without insurance

Tennessee requires all drivers to carry a minimum amount of car insurance. Driving without insurance in Tennessee can lead to serious consequences, including fines, the suspension of your driver's license and registration, and even jail time. Here is a detailed overview of the penalties for driving without insurance in Tennessee:

Penalties for Failure to Provide Proof of Insurance:

If you are pulled over by a law enforcement officer during a traffic stop or at the scene of an accident, you must show proof of insurance. Failure to do so can result in the following penalties:

• Being charged with a Class C misdemeanour, punishable by a fine of up to $300.
• Having your vehicle towed.
• Suspension of your driver's license and registration until you provide proof of insurance, pay a $65 restoration fee, and obtain an SR-22 certificate for a $50 fee.
• Your insurer will need to file the SR-22 form, indicating that you have the minimum required insurance. This form must be kept on file for three years, during which your insurance rates may increase due to your higher-risk status.
• The state may require you to retake the driver's license exam to regain your license and registration.

Failure to Respond to Insurance Verification Requests:

Tennessee actively monitors the insurance status of registered vehicles. If the Tennessee Department of Revenue notifies you to provide proof of insurance, you must respond within 15 days. Failure to respond within the given timeframe can result in the following:

• A $25 coverage failure fee within 30 days of the initial notification.
• If you do not provide proof of insurance after the initial fee, the state may charge an additional $100 fee and suspend your driver's license and registration.
• To reinstate your driving privileges, you will need to pay a $65 fee and an additional $50 for the SR-22 certificate.

If you are involved in an accident while driving without insurance in Tennessee, the consequences can be severe. In addition to the penalties for driving without insurance, you may face:

• Out-of-pocket expenses for any injuries or property damage caused in the accident.
• A Class A misdemeanour charge, with potential fines of up to $2,500 and imprisonment of up to 11 months and 29 days.
• Increased insurance rates in the future, as car insurance companies base their premiums on risk assessments.

It is important to note that providing false insurance information in Tennessee is also illegal and can result in charges of insurance fraud, leading to additional fines and jail time.

Additional insurance coverage options

Tennessee drivers have a few options for additional insurance coverage beyond the minimum requirements. These optional add-ons can provide extra protection and peace of mind in the event of an accident or other vehicle-related incidents. Here are some of the key additional insurance coverage options available:

• Collision Coverage: This type of coverage pays for repairs to your vehicle if you collide with another vehicle or object, excluding animals. While not mandated by Tennessee law, collision coverage is often required by lenders if you are financing or leasing a vehicle. It ensures that the car can be repaired or replaced if damaged or totaled.
• Comprehensive Coverage: Comprehensive insurance covers non-collision-related damage to your vehicle. It protects you in case of theft, vandalism, or natural disasters. Although not mandatory, comprehensive coverage can provide valuable peace of mind and financial protection.
• Uninsured/Underinsured Motorist Coverage: This coverage is designed to protect you if you are in an accident with a driver who has no insurance or insufficient coverage. It helps pay for your medical expenses, lost wages, and repair costs, regardless of who is at fault.
• Medical Payments Coverage: This add-on covers medical and funeral costs for you and your passengers up to a specified amount. It ensures that you and your passengers receive the necessary financial support in the event of an accident.
• Personal Injury Protection (PIP): PIP coverage provides financial assistance for medical expenses, lost income, and funeral costs for you or your passengers, regardless of who is at fault in an accident. PIP offers comprehensive protection for you and your passengers' well-being.
• Towing and Labor Coverage: This coverage assists with towing and basic roadside assistance labor costs if your vehicle breaks down. It helps cover the initial costs of getting your vehicle to a repair shop.
• Custom Parts and Equipment Coverage: If you have custom enhancements to your vehicle, such as custom wheels or a stereo system, this coverage safeguards your investment. It ensures that you can repair or replace these aftermarket additions.
• Accidental Death Coverage: This type of coverage provides a payout if you or a passenger dies or experiences certain injuries in a car accident. It offers financial support to the affected individuals or their families in the event of a tragedy.
• Classic Car Insurance: For vintage or collector cars, classic car insurance offers agreed-upon values tailored to unique vehicles. This type of coverage is designed for collectors or enthusiasts who may have different needs than everyday drivers.

When considering additional insurance coverage options, it's important to assess your specific needs, the value of your vehicle, personal assets, and any risk factors you may face. Discussing your options with a licensed insurance agent can help you make informed decisions about the level of protection that is right for you.

Average cost of car insurance

In Tennessee, all drivers must have some form of financial responsibility proof, such as carrying car insurance. The minimum coverage limits are $25,000 for bodily injury liability per person and $50,000 per accident, along with $25,000 for property damage.

The average cost of car insurance in Tennessee varies depending on the level of coverage, age, gender, driving record, credit score, and other factors. Here is a breakdown of the average costs:

Average Annual Cost

The average annual cost of car insurance in Tennessee is $1,373, or $114 per month, according to Insure.com. In comparison, the national average is $1,682. USAA offers the cheapest rates in the state, with an average annual cost of $966.

The average annual cost for full coverage car insurance in Tennessee is $1,956, according to Bankrate, while minimum coverage is $468. MoneyGeek reports similar figures, with an average annual cost of $1,090 for full coverage and $438 for minimum coverage.

Average Cost by Age Group

Age is a significant factor in determining car insurance rates. In Tennessee, the average annual cost for young drivers is $2,256, while it is $1,316 for senior drivers. There is a notable difference in rates between male and female young drivers, with males paying an average of $2,417 per year and females paying $2,096.

Average Cost by City

Car insurance rates can vary significantly from city to city within Tennessee. For example, Knoxville has the cheapest full coverage rates at around $838 per year, while Memphis has the most expensive rates at approximately $1,105 per year.

Average Cost by Coverage Level

The cost of car insurance in Tennessee also depends on the coverage level selected. Minimum coverage with state-mandated liability insurance averages $37 per month, while full coverage with a $1,000 deductible costs around $91 per month.

Average Cost by Driving Record

A driver's record can also impact their insurance premiums. In Tennessee, a DUI conviction can increase rates by 108% compared to a driver with a clean record. The average annual cost with a ticket is $1,320, with an at-fault accident is $1,633, and with a DUI is $2,018.

Average Cost by Credit Score

Credit scores can also affect car insurance rates. In Tennessee, the average annual cost varies from $647 for drivers with excellent credit to $1,367 for those with poor credit.

Frequently asked questions