Tennessee Auto Insurance Laws
Auto Insurance Laws and Trends in TN
In Tennessee, drivers are not required to provide proof of insurance to get registration or to obtain a driver's license. However, they do require insurance in order to drive a vehicle. If they are caught without insurance they will receive an immediate $100 fine and a license suspension. Mandatory insurance coverage in Tennessee includes bodily injury of $25,000 per person and $50,000 per accident, and property damage of $15,000 per accident.
Optional coverage in Tennessee
Drivers can also choose to purchase optional coverage such as collision, comprehensive, under/uninsured motorist coverage, personal injury protection (PIP), loss of use, and gap coverage.
- Collision: Physical damages caused by collision or upset
- Comprehensive: Physical damages caused by fire, theft, vandalism, windstorm or hail, animal collision
- Under/uninsured motorist coverage: Damages or injuries caused by a driver who has no insurance or inadequate insurance, or if you have been a victim of a hit-and-run
- PIP: Medical expenses, funeral expenses, daycare expenses, rehabilitation, dental expenses, loss of wages
- Loss of use: Use of a rental car if your vehicle has been stolen or damaged in an accident and needs to be repaired
- Gap coverage: If you have purchased or leased a new vehicle and it is deemed a total loss, this will cover the difference between the purchase price and the depreciated price.
Costs of car insurance for Tennessee residents
Tennessee has one of the lowest insurance premiums in the country, holding the rating of number 40 out of the 50 states. The average rate is $654 per year and the national average is $817 per year.
Tennessee has also implemented the Pay-As-You-Drive program. Drivers will receive a small device that can be plugged into their vehicle that records how far and how fast a person drives. It also records the breaking habits of the driver. If it is a GPS system, it can measure the exact distance and where you drive. Drivers will pay according to how many miles they actually drive. Instead of using these sophisticated devices, the insurance agent can also record the mileage from the vehicle's odometer.