Tennessee Car Insurance Laws

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The state of Tennessee offers a variety of amazing places to visit, from the Smoky Mountains to Graceland to everywhere in between. Tennessee insurance laws prohibit residents from driving to these places without having the minimum required insurance. Tennessee’s car insurance laws require that you have liability insurance, regardless of whether you intend to travel throughout the state or just commute to work.

Insurance is not only necessary, but also an excellent financial decision. According to the Insurance Institute for Highway Safety, Tennessee ranks 9th for most fatal crashes per annum. The proper insurance protects your finances from possible disaster, regardless of whether a crash results in a fatality or a minor fender bender. Tennessee has competitive rates for insurance, with minimum car insurance premiums at $396 per annum, compared to the $563 national average.

Tennessee has laws regarding car insurance

Tennessee auto insurance guidelines require liability coverage to cover the minimum coverage amount. This exception is only if you can prove financial responsibility and apply for exemption. You must prove that you don’t own the car anymore, that your car is not in use or that you keep your vehicle full-time. You can take out the following liability coverage if you don’t fit into one of these categories:

  • $25,000 bodily injury liability coverage per individual
  • $50,000 bodily injury liability coverage per accident
  • $15,000 per accident property damage liability coverage
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Tennessee offers liability insurance

Liability insurance is very important because it covers bodily injury and property damage if you are responsible for an accident. If you are involved in an accident involving a car, the minimum liability coverage is not sufficient to cover all aspects.

If you consider liability, Tennessee’s $50,000 minimum for total injuries and deaths per accident could put your finances in serious jeopardy. If multiple vehicles are involved in an accident, and there are serious injuries to many people, $50,000 will not be enough to cover medical costs.

Uninsured motorist coverage is highly recommended for Tennesseans. Tennessee is home to the highest proportion of uninsured drivers. If you do not have uninsured/underinsured motorist coverage with your policy, you’re opening yourself up to even more financial risk

Is Tennessee a state of no fault?

Each state has its own car insurance laws. These laws govern how insurance companies will cover injuries sustained in an accident. These laws decide if a state can be considered at-fault or not for auto insurance. Tennessee is considered an at-fault State. This means that drivers who are at fault in an accident in Tennessee must pay the expenses of the other party. These payments are made from the policy’s liability limits. If this is not sufficient to cover all expenses related to the accident, the driver at fault can sue to recover the difference.

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Driving without insurance in Tennessee carries severe penalties

Driving without insurance in Tennessee can be illegal. There are also consequences for not having insurance. You could face penalties if you don’t provide proof that you have the minimum liability coverage and you comply with the Financial Responsibility requirements. Initial notification will be sent by the Department of Revenue. If you don’t respond, it could lead to fines or suspension of vehicle registration.

You will be punished if you are caught driving without any insurance.

  • A $300 fine
  • You will lose your driver’s license, registration and insurance until you provide proof of coverage and retake the driver’s exam.
  • $65 restoration fee
  • $50 to the commissioner of safety
  • Three-year SR-22 Certificate

Tennessee offers additional auto insurance options

Tennessee drivers have many options for adding coverage to their policy. These are some of the most sought-after add-ons that drivers can buy:

  • Collision insurance: collision covers damage to your car from an accident with another vehicle, an object, or something falling onto it — even if you are at fault. This covers damage to your vehicle if a tree falls on it or if you drive through a pothole. The average cost for collision coverage in Tennessee is $343.
  • Comprehensive: Comprehensive covers your vehicle if it is damaged in an accident or other serious event. Comprehensive coverage covers damage to animals, storms, vandalism, vandalism, and natural disasters. Comprehensive coverage in Tennessee costs on average $158 per annum.
  • Roadside Assistance: If your current policy does not include roadside assistance from third parties, adding it to your policy will ensure that you are covered if your car becomes undriveable. Many policies provide assistance for you if your car is not able to drive, you have an emergency, or your battery dies.
  • Rental car coverage: If your vehicle is damaged in an accident, getting rental car reimbursement will make it a little easier. While your car is being repaired, you will be reimbursed for the rental car cost. This coverage is usually included in most policies, but you can add it to save yourself additional headaches.
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Questions frequently asked

Which Tennessee car insurance company is best?

It is important to compare multiple carriers to determine the best car insurance company. Consumers consider the competitive rates, financial stability, digital assets, and policy options as a starting point. These and other factors were reviewed and analyzed to determine the Best Car Insurance Companies In Tennessee.

Which Tennessee insurance company offers the best car insurance?

Tennessee has many options for affordable auto insurance. Geico provides minimum coverage at $199 per year, while full coverage costs $983. This is according to our Cheapest Auto Insurance in Tennessee guide. Tennessee Farmers Group, USAA and Erie offer minimum coverage at competitive rates. State Farm offers full coverage at a lower rate.

What is the cost of car insurance in Tennessee?

The Volunteer State is a state that offers auto insurance at a fraction of the cost. The minimum coverage is $396 per annum, while the full coverage costs $1,364. This is a good example of the national average for auto coverage. It is $563 per annum for minimum coverage and $1,738 for full coverage.

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