Auto Insurance Savings In Tennessee: What You Need To Know

Tennessee has a mandatory minimum limit for car insurance, which is $25,000 for each injury or death and a total of $50,000 per accident, with $15,000 for property damage per accident. This liability coverage is the only insurance required by the state, though drivers can face serious penalties for failing to hold insurance, including fines, license suspension, and vehicle registration suspension. 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.

Minimum insurance requirements

Tennessee has a financial responsibility law that requires drivers to be financially responsible in the event of an automobile accident. The easiest way to meet this requirement is by obtaining auto liability insurance. Since 2017, uninsured drivers in Tennessee have had to pay fines and risk losing their vehicle registration if they cannot demonstrate proof of financial responsibility.

The minimum insurance requirements in Tennessee are as follows:

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

These limits are often written as 25/50/15 or split limits, referring to the three separate amounts. The per-person amount covers any single person injured in an accident, while the per-accident limit applies if multiple people are injured. The property damage per accident limit covers damages to another person's property.

Tennessee also requires drivers to have uninsured motorist coverage, including:

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

Uninsured motorist coverage can be rejected in writing.

While these are the minimum insurance requirements in Tennessee, it is recommended to purchase additional coverage for more comprehensive protection. Collision coverage, comprehensive coverage, roadside assistance, and medical payments are all optional but important considerations for drivers in Tennessee.

Liability coverage

The minimum liability coverage in Tennessee is 25/50/15, which includes:

• $25,000 bodily injury per person and $50,000 per accident. This covers any single person injured in an accident you cause and will cover multiple people up to the "per accident" limit.
• $15,000 property damage per accident. This covers damage to another's property caused by you.

Liability insurance is split into two types: bodily injury liability and property damage liability. Bodily injury coverage pays for the medical costs associated with the car accident, including funeral expenses in many cases. Property damage liability covers the cost of property damage caused by you, typically the victim's car, but not limited to that.

While liability coverage is the only insurance required by the state of Tennessee, drivers may want to consider additional coverage for further protection. Collision coverage, for example, pays to repair your vehicle if you collide with another driver or object (other than an animal). Comprehensive coverage pays for the repair of non-collision damages to your vehicle, such as theft, damage from weather, and collisions with animals.

It is important to note that liability insurance never covers your injuries or any damage to your property. It only pays the other driver. Additionally, Tennessee drivers are required to always carry proof of insurance, which must be presented during traffic stops, at the scene of an accident, or when registering a vehicle.

Collision coverage

When choosing collision coverage, you can select your collision deductible, which is the amount you are willing to pay for repairs before the insurance coverage kicks in. A higher deductible can lower your monthly premium, but it also means you will pay more out of pocket if an accident occurs.

In addition to collision coverage, comprehensive coverage is another optional insurance type in Tennessee. While collision coverage focuses on collision-related damages, comprehensive coverage includes non-collision events such as theft, fire, or natural disasters. Together, these two types of coverage are often referred to as "full coverage."

When deciding on auto insurance in Tennessee, it is important to consider your specific needs and the value of your vehicle. While collision coverage is optional, it can provide valuable financial protection in the event of an accident, helping to keep you and your vehicle secure.

Comprehensive coverage

Tennessee drivers must carry the following mandatory minimum car insurance coverages and limits: bodily injury liability, property damage liability, and uninsured motorist coverage. While liability coverage is the only insurance required by the state of Tennessee, drivers can access a variety of car insurance discounts that help reduce the cost of their premiums.

Although not required by Tennessee law, comprehensive coverage is an additional type of insurance that Tennessee drivers can purchase. Comprehensive coverage pays for damage to your vehicle caused by non-collision events, such as theft, fire, or natural disasters. Comprehensive coverage is often referred to as "full coverage" when bundled with collision coverage.

In Tennessee, a comprehensive insurance policy with a $1,000 deductible costs $1,093, 193% more than liability-only car insurance. For a comprehensive policy with a $500 deductible, expect to pay around $1,327.

Tennessee drivers who are veterans or belong to a military family can get even cheaper car insurance from USAA. A full coverage policy from USAA costs $88 per month, which is 32% cheaper than the state average.

Uninsured/underinsured motorist coverage

Tennessee has a fault-based insurance system, which means that after a car accident, victims can recover damages from the at-fault motorist's insurance company. However, if the at-fault driver does not have insurance or has insufficient insurance, victims may struggle to pay for the costs of the collision, even if they have a comprehensive health insurance policy.

Uninsured and underinsured motorist coverage is designed to protect you in this situation. It covers you and your family or other occupants of your car in the event that you are in an accident with a driver who does not have insurance or does not have enough insurance to cover the losses you suffer as a result of the accident.

Uninsured motorist coverage, sometimes referred to as UM or UMBI, can be used in the following scenarios:

• The other driver does not have liability coverage
• The other driver is a hit-and-run driver
• The other driver's insurance company denies coverage or becomes insolvent

Underinsured motorist coverage provides similar benefits if the other driver does not have sufficient insurance to compensate you for your losses. In most cases, an underinsured motorist policy will provide compensation on top of whatever the at-fault driver's insurance company can cover.

Uninsured and underinsured motorist coverage is not mandatory in Tennessee, but it is a good idea to have it. Tennessee has the fifth-highest number of uninsured drivers in the country, with an estimated 20-25% of drivers uninsured. If you do not have this coverage and are hit by an uninsured driver, you may have to pay for repairs out of your own pocket.

While health insurance will cover your medical bills, it will not pay for other losses such as lost wages, pain and suffering, permanent impairments, scarring, and home modifications. Uninsured and underinsured motorist coverage can provide reimbursement for these costs, as well as past, present, and future medical bills, and funeral expenses and burial fees.

The cost of uninsured and underinsured motorist coverage varies between providers, but it is often more affordable than people expect, with some policies costing as little as $5 a month.

Frequently asked questions