Tennessee State Minimum Auto Insurance Requirements (2021)

By Velox | January 06, 2021

In Tennessee, drivers have to meet minimum state-mandated auto insurance coverage requirements. In fact, the state is specific about the requirements drivers should get before driving. Failure to meet the minimum auto insurance requirements leads to hefty fines and even license suspension in Tennessee.

Like other states, Tennessee drivers also have to confirm their financial responsibility to drive legally. The most efficient way to check all the minimum requirement boxes is to purchase auto insurance with an extended coverage limit.

What is the Ideal Extended Coverage Limit for Tennessee Drivers?

Drivers should opt for a coverage limit of at least $25,000 for BIL for each person and $50,000 for each accident. Furthermore, Tennessee drivers should also increase the limit to $15,000 for PD. In Tennessee, drivers can submit a surety state bond or file a separate cash deposit.

Tennessee drivers also need to get proof of insurance coverage such as a declaration page of the policy or insurance coverage ID card during driving. And if get caught driving with no insurance coverage, you might have to pay a hefty fine or face temporary suspension on a state-issued driver’s license.

Insurance System in Tennessee

Tennessee has a traditional and standard fault-based insurance system to authenticate financial responsibility of losses in an event of an accident. It can cover lost wages, multiple injuries, and vehicle damage. In layman’s terms, the system makes the driver who causes an accident responsible for the injuries.

But policyholders can take a sigh of relief because of the extended coverage options in Tennessee. It is a perfect mechanism that works in favor of drivers and diverts the attention towards insurance providers that cover all the costs of an accident.

As a Tennessee driver, if you sustain an injury or damage due to a car accident, you can file a new claim with your insurance provider. But if another driver causes the accident, you can count on your insurance provider to submit a claim on your behalf against the driver responsible for the accident.

Tennessee drivers can also file a separate third-party claim. It is an effective way to get the attention of the at-fault car driver’s insurance provider. Of course, you can also file a lawsuit of personal injury and opt for civil court action against a responsible driver in a court of law.

When it comes to car insurance coverage, each state has its own set of minimum requirements and guidelines. Also, the minimum coverage limits differ from state to state. According to Financial Responsibility Law in Tennessee, drivers have to demonstrate that they can financially cover the losses in case a minor or severe accident occurs.

The same dictates that car owners have to carry minimum liability coverage while driving. In some cases when drivers finance their car from a bank, you may have to meet the additional coverage requirements beforehand.

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Liability Coverage

Like other states, liability coverage covers the cost of medical bills, property damages, and other similar costs that involve injuries or property damage. You can view liability coverage through the lens of bodily injury and property damage.

BI covers medical bills that involve injuries and even funeral expenses. Conversely, PD covers the total cost for any property damage to the victim’s vehicle. The minimum liability insurance coverage boils down to three numbers: 25/50/15. You can check the Tennessee Department of Revenue to learn about minimum auto insurance coverage for drivers.

Minimum amount of $25,000 BI per person
Minimum amount of $50,000 BI per accident
Minimum coverage of $15,000 PD per accident

Penalties for Driving Without Auto Insurance in Tennessee

Tennessee Department of Revenue makes it clear that car drivers without auto insurance coverage can face hefty fines. And failure to present proof of financial responsibility voids car registration. For instance, at-fault drivers can get fines as high as $2,500 and an entire year of jail time.

SR-22 Required Documents in Tennessee

If you want to reinstate your Tennessee-issued driver’s license after a DUI conviction, driving without auto insurance can lead to suspension. And this is where the SR-22 auto insurance document comes into the mix. It serves as an affirmation of future financial responsibility for drivers. In Tennessee, insurance companies file SR-22 documents electronically on behalf of the policyholders. It is also the fastest way to back to driving.

Optional Auto Insurance Coverage Options in Tennessee

In Tennessee, drivers just have to get liability insurance. But additional insurance coverage options that increase the protection include collision, comprehensive, medical payments, roadside assistance, and uninsured motorist coverage in Tennessee.

Conclusion

The amount of coverage, insurance types, and limits vary from state to state. So, it is crucial for drivers to learn about different insurance types, coverage options, and increased coverage limits in Tennessee. All drivers in Tennessee should prioritize maximum coverage protection while driving. You should also reach out to your insurance company to confirm you have suitable auto insurance coverage.