Auto Coverage in Tennessee
Tennessee Auto Insurance
The state of Tennessee requires that all drivers carry automobile liability insurance, and keep proof of coverage with them in the car at all times. This isn't just the law – it's also there to protect you and your finances in case of accidental damage or medical bills in an accident. It's especially important for you to carry adequate auto insurance, because it's estimated that 1 in every 5 drivers in Tennessee doesn't carry any insurance at all!
Minimum Tennessee auto insurance
Drivers in Tennessee must carry the following minimum amounts in auto insurance coverage:
- Bodily Injury and Death: $25,000 to cover one person in any one accident, and $50,000 to cover all injuries
- Property Damages: $25,000
The state also follows a tort system. This system stipulates that one of the drivers must be found at fault in the event of an accident, and the victims must be compensated. So if you cause an accident, you'll have to pay all the costs for medical bills and property damage for the passengers in your vehicle, as well as the other driver and his passengers.
Your auto insurance policy will usually handle these costs, but if you don't have enough coverage, you may end up paying out of pocket. These costs can be very expensive, so companies recommend purchasing more than the bare minimums listed above, in order to make sure your assets are protected.
Penalties without Tennessee auto insurance
If you can't provide proof of insurance, you'll receive a Class C misdemeanor along with a $100 fine, plus face suspension of your driver's license.
However, in an accident, if you don't have your proof of insurance with you at the scene, you have some time to show evidence later on that you were insured at the time of the collision.