Auto Insurance Requirements: Tennessee's Minimum Standards Explained

Tennessee has a set of auto insurance requirements that all drivers must meet to be considered legal. The state mandates that all motorists have a minimum limit of car insurance, with liability coverage being the only type of insurance required. Tennessee is an at-fault state, meaning the driver deemed responsible for an accident is liable for covering the resulting damages and losses. To that end, drivers in Tennessee are required to carry a minimum coverage auto insurance that includes $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident, and $15,000 to $25,000 for property damage liability per accident.

Proof of financial responsibility

In Tennessee, all drivers must have some form of proof of financial responsibility to be allowed to drive. This is to ensure that they are able to cover financial losses resulting from any car accident they might cause. This is a requirement in every state.

The most common way to meet the requirement is by purchasing a liability car insurance policy with at least the minimum coverage limits. This includes $25,000 for bodily injury liability per person and $50,000 per accident, as well as a $25,000 minimum for property damage. However, Tennessee drivers may instead satisfy the law by filing either a cash deposit or a surety bond with the state.

If you are caught driving without insurance, you may need to pay a fine or surrender your driver's license. You could face a conviction for a Class C misdemeanour, punishable by a fine of up to $300, your vehicle could be towed, and your driver's license could be suspended.

• Purchase liability car insurance coverage with the minimum coverage limits mentioned above.
• File a cash deposit or surety bond with the state. The minimum amount required for this option is a $65,000 deposit, which serves as your insurance fund to satisfy future judgments arising from any auto accident you cause.
• Show that you qualify as a "self-insurer" under state law.

Bodily injury liability

Tennessee is an "at-fault" state, meaning that the driver deemed responsible for causing an accident is legally required to pay for any resultant damages and losses. As such, Tennessee law requires all drivers to carry liability insurance to cover any injuries or damages they may cause in a car accident.

The minimum coverage limits for car insurance in Tennessee are:

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

These are the bare minimums required by law in Tennessee. Bodily injury liability insurance covers the other party's medical bills if you are at fault in a car accident. This includes ambulance services, surgeries, and rehabilitative services. It can also cover funeral expenses in the event of a fatality.

It is important to note that these minimum coverage limits may not be sufficient in the event of a serious accident. For example, if you injure three people in a car accident, your insurance will pay out a maximum of $25,000 per person, with a total cap of $50,000 for all three individuals. Therefore, it is recommended to purchase higher limits to fully protect your assets. The available limits vary by insurer in Tennessee.

If you are caught driving without the minimum required insurance in Tennessee, you may face fines, suspension of your driving privileges, or even jail time.

Property damage liability

Tennessee is a "'fault' car accident state", meaning that the driver deemed at fault in an accident is legally responsible for paying for any resultant damages and losses. To this end, Tennessee law requires all drivers to carry liability insurance. This is the most common way to meet the requirement of having some proof of financial responsibility in order to drive.

The minimum amount of property damage liability coverage required in Tennessee is $15,000 per accident. This will cover the cost of property damage caused by the policyholder. This typically refers to the victim's car but can also include buildings or fences, for example.

The minimum coverage of $15,000 per accident can easily be exceeded, especially when you consider that the average price of a new car is well above $20,000. If you cause an accident that damages more than one vehicle, the $15,000 limit is still the maximum amount that your insurance company will pay out. For this reason, it is recommended that drivers purchase higher limits to protect their total assets in case they are sued.

Tennessee allows the minimum property damage liability requirement to be met with what's known as a combined single limit. Instead of separating the coverage between bodily injury and property damage, you are covered for the combined amount of $90,000. This gives you more flexibility in what is covered. Not all insurers provide such a policy, so you'll need to contact them individually.

Uninsured motorist coverage

Tennessee is a “fault” state, meaning that the party responsible for causing an accident is legally responsible for paying for any resultant damages and losses. Tennessee law requires drivers to carry liability insurance to cover any injuries or property damage they may cause in a car accident. 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.

While liability coverage is the only insurance required by the state, Tennessee insurance companies are mandated to include uninsured motorist coverage in every auto insurance quote. Uninsured motorist coverage is meant to protect insured drivers in the event that they suffer bodily injury or property damage caused by an uninsured or underinsured motorist. This type of coverage is especially important in Tennessee, as it is estimated that up to 20% of all drivers in the state are uninsured.

Uninsured motorist bodily injury (UMBI) coverage pays for your medical bills if you're in an accident with an uninsured driver, regardless of who is at fault. It also covers you if the other driver has insurance but their liability insurance is insufficient to cover your medical bills. It's important to note that your UMBI limits may not exceed your bodily injury liability limits on the same policy.

Tennessee is one of the few states that also offers uninsured motorist property damage (UMPD) coverage. This coverage pays for repairs to your vehicle following an accident with an uninsured or underinsured driver. There may be a deductible, typically $200, for each accident before UMPD covers the remaining bill.

While you may choose to reject uninsured/underinsured coverage in writing, most agents and government officials recommend keeping this coverage. Tennessee allows you to waive your right to UM/UIM coverage and, in writing, to lower those limits. However, doing so could leave you financially vulnerable in the event of an accident with an uninsured or underinsured driver.

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.

If you are caught driving without insurance in Tennessee, you may face a ticket for driving without insurance and may be subject to further penalties, depending on your driving record. Tennessee state law states that you may have to pay fines, surrender your driver's license and registration, or even serve jail time if caught driving without insurance.

Fines

According to Tennessee's Financial Responsibility Law, if you are unable to show proof of insurance during a traffic stop or at the scene of an accident, you may be charged with a Class C misdemeanour, which is punishable by a fine of $300. This fine has increased from $100; in July 2015, Tennessee Governor Bill Haslam signed a new law with stricter penalties against uninsured drivers.

Vehicle towed

The police officer who pulls you over also has the authority to have your vehicle towed.

Suspended driver's license

Your driver's license and registration will be suspended until you can provide proof of financial responsibility. You will then need to pay a $65 restoration fee and a $50 fee for an SR-22 form. This form will need to stay on file for three years, during which time your insurance premium may increase as you are seen as a risky driver.

Retake driver's license exam

The state may also ask you to retake the driver's license exam to get your license and registration back.

Further penalties

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 medical and repair bills that stem from the accident. You could also face a Class A misdemeanour and pay up to $2,500 in fines and face jail time of up to 11 months and 29 days.

Frequently asked questions