Tennessee Car Insurance Requirements

Understanding Tennessee car insurance requirements is essential not only for staying legally compliant but also for knowing your options if you get into a car accident. In this guide, our Nashville personal injury attorneys will explain your liability car insurance requirements under Tennessee law and what to do if you get into an accident.

What Are the Minimum Auto Insurance Requirements Under Tennessee’s Financial Responsibility Law?

Tennessee’s Financial Responsibility Law requires drivers to show proof of their ability to cover financial losses resulting from any car accident they may cause, typically through liability insurance. Per the Tennessee Department of Revenue, you need the following minimum liability insurance:

• $25,000 per person’s bodily injury or death, per accident.
• $50,000 for total injuries to all people, per accident.
• $25,000 for vehicle damage or other property damage, per accident.

These limits are often referred to as 25/50/25 coverage. If the at-fault driver has the minimum coverage, only $25,000 is available to cover medical bills, lost wages, and other needs per person after an accident. If the total bodily injury exceeds this, you may need to find other options for compensation.

In Tennessee, drivers can alternatively post a $65,000 bond or cash deposit with the Department of Revenue to demonstrate financial responsibility instead of carrying insurance (Tennessee Code § 55-12-102).

What Does Liability Insurance Cover in Tennessee?

Liability car insurance in Tennessee is meant to cover other people if an insured driver causes an accident. However, this typically does not cover the insured driver’s injuries or vehicle damage.

Bodily Injury

Bodily injury liability coverage will pay for necessary medical treatments, which can include:

• Emergency medical treatment
• Hospital bills
• Surgery
• Physical therapy
• Future medical care
• Lost wages
• Pain and suffering
• Wrongful death damages in fatal crashes

Property Damage

Property damage includes damage to vehicles, nearby property, and other infrastructure. It may also cover damage to laptops, clothes, and other items. This can include:

• Vehicle repairs
• Totaled vehicle value
• Rental car costs if covered
• Damage to fences, signs, buildings, or other property
• Personal property damaged in the crash

Total coverage for property damage is limited by the policy’s limits. If you have a $30,000 car that was totaled in an accident, only $25,000 may be covered if the other driver only carried minimum liability coverage.

Can Shared Fault Affect Insurance Claims Following a Car Accident in Tennessee?

Tennessee is a ‘tort’ state, meaning the at-fault driver is responsible for damages. However, Tennessee also uses a modified comparative fault system, as per the Tennessee Supreme Court’s McIntyre v. Balentine. This means that you can secure damages if you are no more than 50% liable, but your damages will be reduced by your percentage of blame.

What Happens if the At-Fault Driver Has the Minimum Auto Insurance Coverage?

Damages and available insurance are different. Damages cover all costs associated with the accident, but insurance companies typically have limits to how much they will pay, called policy limits.

In serious accident cases, the victim may sustain damages that far exceed the available insurance coverage. This is especially true for accidents caused by drivers with minimum coverage.

First, the injured person needs to know the other driver’s policy limits, including any additional coverage that may have been active at the time. If the driver was working at the time, then their employer, like a trucking company or rideshare company, may be vicariously liable for part of the claim. They may have commercial insurance policies that can provide additional coverage.

Another driver may also have contributed to the crash, meaning their insurance company may pay part of the cost. Lastly, injured victims can look at their own uninsured/underinsured motorist coverage, if available, to cover the difference between their damages and the policy limits.

Does Tennessee Require Uninsured or Underinsured Motorist Coverage?

Your own insurance policy may become important even if you were not primarily liable for the accident, as the other driver might not have insurance or their policy limits may be too low.

Per the Tennessee Code § 56-7-1201, auto insurance policies typically include uninsured motorist coverage unless the insured rejects it in writing. The law also requires insurance companies to offer uninsured motorist coverage with limits at least equal to bodily injury liability limits, though the consumer can reject it in writing.

Uninsured motorist coverage pays for bodily injury or property damage when the at-fault driver has no insurance or if the accident is a hit-and-run crash and the negligent driver cannot be located.

Underinsured motorist coverage may apply when the at-fault driver has insurance, but the available liability limits are too low to cover your damages. Tennessee policies generally include uninsured motorist coverage unless it is rejected in writing, and drivers may select lower limits within statutory rules.

What Happens if You Drive Without Car Insurance in Tennessee?

Tennessee requires drivers to show proof of valid insurance when charged with most motor vehicle violations or when involved in a reportable accident. Police officers are also allowed to check insurance at normal traffic stops if applicable. Municipal Technical Advisory Service summarizes this requirement under T.C.A. § 55-12-139.

Driving without insurance in Tennessee is considered a Class C misdemeanor, which can result in legal penalties (TN Code § 55-12-139). If caught driving without insurance, you will have 30 days to provide proof of insurance to avoid further penalties. Failing to carry proof of an active car insurance policy can result in a driver’s license suspension or suspension of vehicle registration.

Recovering car accident damages is more challenging if the driver is uninsured, as your attorney may need to search for other policies that may cover your needs. You may also face personal financial exposure if the uninsured driver caused the accident and you did not have uninsured motorist coverage.

What Optional Car Insurance Options Are There in Tennessee?

While the minimum liability coverage is the legal baseline for compensation, here are other forms of insurance coverage that may come into play after a car accident. This can impact how claims are handled because certain policies may handle medical bills or vehicle repairs separately.

These additional insurance policies can include:

• Collision Coverage: This can cover all or part of the repair and replacement for an insured vehicle.
• Comprehensive Coverage: Comprehensive coverage can compensate policyholders after non-collision losses, including theft, vandalism, weather damage, or animal strikes.
• Medical Payments Coverage: MedPay may help pay medical bills regardless of who caused the crash, depending on the policy terms.
• Uninsured/Underinsured Motorist Coverage: Also known as UM/UIM, this system can cover damages if the other driver did not have insurance or their policy limits were too low.
• Rental Reimbursement: This can pay for rental cars after a vehicle is totaled or while it is being repaired.
• Gap Insurance: Typically used for financed vehicles, this coverage pays if a leased vehicle is totaled and the loan balance exceeds the vehicle’s value.

What Should You Do if a Car Insurance Company Disputes Your Claim After a Tennessee Crash?

If insurance companies dispute a claim, you still have options. The first coverage answer is not final, and you can ask for a review. Careful documentation will make it easier to prove your claim. Follow these steps as soon as possible:

• Secure a copy of the police report.
• Notify your own insurer about the accident.
• Seek medical treatment and follow your doctor’s orders.
• Save all insurance cards, policy information, and insurance communications.
• Photograph vehicles, license plates, and damage to personal property.
• Get names and contact information for all drivers and witnesses.
• Keep medical bills, repair estimates, and other financial documents.
• Avoid recorded statements to insurance companies or the other party.
• Contact a lawyer if fault, coverage, or policy limits are disputed.

It is important to start the claims process quickly in case your Nashville car accident lawyer needs to file a lawsuit. The Tennessee car accident statute of limitations is one year from the date of the accident (TN Code § 28-3-104). Since the process typically starts with insurance negotiations, beginning the claims process quickly ensures we have time to pursue other legal options.

How Grissim & Waterman Can Help

We will identify available insurance coverage, including policy limits, and determine whether UM/UIM coverage applies.

Since Tennessee is an at-fault state, we will investigate fault by examining police reports, accident scene photos, witness statements, and surveillance footage. We will also calculate your medical bills, lost income, and future damages before crafting a demand letter for your insurance claim.

We handle all communications with insurers and will respond to comparative fault arguments, ensuring you are not unfairly blamed for the accident. When applicable, we will search for additional liable parties or commercial coverage. We can also file a lawsuit before the deadline when necessary.

The attorneys at Grissim & Waterman have over 75 years of combined legal experience helping injury victims recover compensation. To schedule a free consultation, call us at 615-255-9999 or use our online contact form.