Tennessee Auto Insurance: Understanding The Coverage Limit Laws

Tennessee has specific requirements for state minimum car insurance coverage, and failing to adhere to these requirements can result in fines and license suspensions. Tennessee is a fault state, meaning that whoever is deemed to be at fault for an accident is legally responsible for paying for any resultant damages and losses. Tennessee law requires drivers to carry liability coverage, which covers injuries and damages to other parties in the event of an accident. The minimum liability coverage limits in Tennessee are $25,000 for bodily injury per person and $50,000 per accident, along with $15,000 for property damage per accident. These limits are important for Tennessee drivers to understand to ensure they have adequate coverage in the event of an accident.

Minimum insurance requirements

Tennessee has specific requirements for the minimum amount of car insurance coverage that drivers must carry. Failing to do so can result in fines and the suspension of driving privileges.

The minimum amount of Tennessee auto insurance coverage is $25,000/$50,000/$15,000. In the event of a covered accident, your limits for bodily injury are $25,000 per person, with a total maximum of $50,000 per incident. It also covers up to $15,000 for damage to another person's property.

Liability coverage is mandatory and includes two types: property damage and bodily injury. Property damage liability covers certain damage you may cause to the property or vehicle of another party. Bodily injury liability covers certain expenses associated with bodily harm sustained by the other parties.

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 (usually comprehensive and collision).

Tennessee also requires uninsured motorist coverage in every auto insurance quote. This includes uninsured motorist bodily injury (UMBI) and uninsured motorist property damage (UMPD). You may choose to reject this coverage in writing, but it is not recommended.

In addition to carrying insurance, Tennessee's financial responsibility law requires that any person involved in a crash resulting in bodily injury or property damage must be able to demonstrate financial responsibility to cover potential costs incurred from the accident.

Tennessee actively monitors whether or not vehicles are insured. Penalties for failure to show proof of insurance include fines, driver's license suspension, and vehicle registration suspension.

Liability coverage

• Minimum Liability Coverage: 25/50/15
• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $15,000 property damage per accident

Bodily injury coverage covers medical costs for injuries and may include funeral expenses. Property damage coverage pays for the costs of property damage and usually includes the victim's car. However, it is not limited to the victim's car and can include other property, such as a building or fence.

While these are the minimum coverage requirements in Tennessee, it is important to note that they may not provide enough protection in the event of a serious accident. For example, the property damage liability minimum of $15,000 can easily be exceeded if you damage multiple vehicles or a newer vehicle. Similarly, the bodily injury liability coverage of $25,000 per person and $50,000 per accident may not be sufficient if multiple people are injured in an accident.

To avoid being underinsured, it is recommended to consider increasing your coverage limits. This can be done for a relatively low addition to your premium. By increasing your coverage limits, you can have peace of mind knowing that you are adequately protected in the event of an accident.

Optional insurance coverages

While liability insurance is the only type of insurance required by the state of Tennessee, there are several other types of coverages that you can add to your policy for additional protection. These optional coverages include:

Collision Coverage

Collision coverage pays for repairs to your vehicle if it is damaged in a collision with another vehicle or object (excluding animals). 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 pays for repairs or damages to your vehicle that are not caused by a collision. This includes incidents such as theft, weather damage, fire, vandalism, glass breakage, and collisions with animals. Like collision coverage, comprehensive coverage is subject to a deductible. Together, comprehensive and collision coverage are often referred to as "full coverage."

Roadside Assistance

Roadside assistance coverage can be a helpful addition to your policy, as it provides assistance if your vehicle breaks down while driving. The specific services covered can vary between providers, but typically include services like battery jumps, flat tire changes, towing, and fuel delivery.

Medical Payments Coverage

This coverage pays for medical and funeral costs for you and your passengers, regardless of who is at fault in the accident. This can include reasonable and necessary medical expenses incurred as a result of the accident.

Uninsured/Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage protects you in the event of an accident where the other driver is at fault and does not have insurance or does not have sufficient insurance to cover the damages. This coverage includes both bodily injury and property damage protection, ensuring that you can receive compensation for your injuries and vehicle repairs even if the at-fault driver is uninsured or underinsured.

Accident Forgiveness

Accident forgiveness is an optional coverage that can be added to your policy to prevent your insurance rates from increasing after your first at-fault accident. This can be especially useful if you are a high-risk driver or have a history of accidents.

Loss of Use/Rental Car Expense Coverage

If your vehicle is unable to be driven due to a covered loss, loss of use or rental car expense coverage can help cover the cost of a rental car or other transportation expenses while your vehicle is being repaired. This can be a valuable addition to your policy if you rely on your vehicle for daily transportation.

Penalties for driving without insurance

Driving without insurance in Tennessee can result in various penalties, from fines to jail time, depending on the circumstances. Here is an overview of the consequences you may face if caught driving uninsured in the state:

Failure to Provide Proof of Insurance:

• Fines: If you are pulled over by a law enforcement officer and cannot show proof of insurance, you may be charged with a Class C misdemeanour, which carries a fine of up to $300.
• Towing: The police officer has the authority to have your vehicle towed.
• Suspended Driver's License and Registration: Your driver's license and registration will be suspended until you can provide proof of insurance.
• Fees: You will be required to pay a $65 restoration fee and a $50 fee for an SR-22 form to reinstate your driving privileges.
• Increased Insurance Rates: Your insurance provider may consider you a high-risk driver and increase your insurance rates.
• Retake Driver's License Exam: The state may require you to retake the driver's license exam to get your license and registration back.

Driving Without Insurance:

• Fines: Driving without insurance is a Class A misdemeanour if you are involved in an accident that causes bodily injury or death. You may be fined up to $2,500 if found at fault.
• Jail Time: A Class A misdemeanour can also result in imprisonment of up to 11 months and 29 days.
• Loss of Vehicle Registration: Uninsured drivers may lose their vehicle registration if they cannot provide proof of financial responsibility.
• Out-of-Pocket Expenses: If you cause an accident while uninsured, you will be responsible for covering all medical and repair bills out of your own pocket.
• Increased Future Insurance Premiums: A history of driving without insurance can lead to higher insurance premiums in the future, as insurance companies base their rates on risk assessment.

Providing False Insurance Information:

• Fines: Providing false insurance information is considered insurance fraud and is a Class A misdemeanour. If convicted, you may face fines of up to $2,500.
• Jail Time: A Class A misdemeanour can result in imprisonment of up to 11 months and 29 days.

To avoid these penalties, Tennessee drivers are required to carry a minimum amount of liability car insurance or provide alternative proof of financial responsibility. The state actively monitors insurance coverage and will notify you if your vehicle is registered as uninsured, giving you a chance to provide proof of insurance before any penalties are imposed.

Proof of insurance

In Tennessee, drivers must carry proof of insurance, also known as proof of financial responsibility, at all times when driving. This is usually in the form of an insurance ID card, provided by your insurance company, which includes your policy number and details about you and your vehicle. Alternatively, you can show an electronic copy of your proof of insurance on your phone in Tennessee.

• The name and address of the insurance company
• The NAIC (National Association of Insurance Commissioners) number or "Company Number"
• The effective date and expiration date of the policy
• The first and last name of the "named insured"
• The make, model, year, and VIN of the insured vehicle(s)

The minimum insurance requirement in Tennessee is $25,000 for bodily injury liability per person and $50,000 per accident, along with $15,000 for property damage. This is often written as 25/50/15 and is known as a split limit.

If you are caught driving without insurance in Tennessee, you may have to pay a fine of $25 or surrender your driver's license. You could also face a Class A misdemeanour charge if you are in an auto accident that causes bodily injury or death and do not have insurance. This can result in fines up to $2500 and jail time of up to 11 months and 29 days.

Frequently asked questions