Car Insurance in Tennessee

State minimum coverage requirements

Under Tennessee Code Annotated Section 55-12-102, all Tennessee drivers must maintain the following minimum coverage:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $15,000 property damage per accident

Driving without insurance in Tennessee results in a fine and license suspension. You must carry proof of financial responsibility at all times and present it to law enforcement upon request. Reinstating your license after a suspension requires proof of current coverage and payment of reinstatement fees. Tennessee uses an online insurance verification system to monitor active coverage status. SR-22 filing is required after DUI convictions and certain other violations.

Is Tennessee a no-fault state?

No. Tennessee is an at-fault state.

Tennessee is an at-fault state that applies a modified comparative fault rule with a 50 percent threshold, which is slightly more restrictive than the 51 percent threshold used in most comparative fault states. If your share of negligence is less than 50 percent, you can recover compensation from the other driver reduced proportionally by your fault percentage. If your negligence reaches or exceeds 50 percent, meaning you are equally at fault with the other driver, you cannot recover anything. This equal-fault bar is stricter than states where you must be more than 50 percent at fault before recovery is cut off. The $15,000 property damage minimum is notably low. A moderate rear-end collision involving a newer vehicle can produce repair estimates well above $15,000, particularly for luxury vehicles, trucks, or SUVs with advanced safety features. If you cause an accident that produces $40,000 in property damage and your limit is $15,000, you are personally responsible for the remaining $25,000. Raising your property damage limit to $100,000 typically costs only a few dollars per month more than the state minimum and dramatically reduces your personal exposure in a serious property-damage accident. On the bodily injury side, the $25,000 per person limit can be consumed by a single hospitalization or surgical procedure. Tennessee courts can enforce civil judgments against wages and property when an at-fault driver's insurance is insufficient to cover all damages. For most Tennessee drivers, the practical case for carrying 100/300/100 liability is straightforward, the premium difference from the state minimum is modest, and the financial protection gap it closes is significant.

What the state minimum covers and does not cover

Tennessee's 25/50/15 liability minimum covers only injuries and property damage you cause to other people. It does not cover:

• Damage to your own vehicle from a collision
• Your own medical expenses after an accident
• Losses caused by an uninsured or underinsured driver
• Theft, weather events, or vandalism to your vehicle

Uninsured motorist coverage in Tennessee

Tennessee insurers must offer uninsured and underinsured motorist coverage, and drivers may reject it in writing. UM coverage pays your medical expenses and vehicle damage when an at-fault driver has no insurance. UIM coverage fills the gap when the at-fault driver's policy is insufficient to cover your full losses. Carrying both at limits matching your liability coverage is the standard recommendation for Tennessee drivers.

How credit affects your rate in Tennessee

Tennessee permits insurers to use a credit-based insurance score as one factor when pricing auto policies. The check is a soft inquiry and does not affect your credit report or credit score. Tennessee law requires insurers to notify you if credit information results in an adverse action on your policy, giving you the opportunity to review your credit report for inaccuracies. If your credit has improved since your last renewal, shopping new quotes across multiple carriers is worthwhile because carriers weight credit differently and improvements in your score can reduce your premium even without any change in your driving record.

Recommended coverage levels

Most advisors recommend carrying at least 100/300/100 liability in Tennessee. The $15,000 property damage minimum is particularly low, raising property damage coverage to $100,000 typically adds only a few dollars per month to a Tennessee premium and dramatically reduces personal exposure in a serious property-damage accident. The 25/50 bodily injury minimum can also be consumed by a single hospitalization. Tennessee's exposure to severe weather makes comprehensive coverage relevant for most drivers. The state sits in a region that experiences regular tornado and severe thunderstorm activity, particularly in west Tennessee and the Nashville basin. Hail from these storms can cause significant vehicle damage. Eastern Tennessee's Appalachian terrain brings its own weather variability including ice storms and flooding in mountain valleys. If your vehicle is financed or leased, collision and comprehensive are required by your lender. For vehicles you own outright, carry collision and comprehensive on any vehicle with meaningful value, Tennessee's weather exposure and the fast-growing urban markets around Nashville and Memphis make these coverages cost-effective for most drivers. Adding UM and UIM coverage at limits matching your liability coverage fills the most significant gaps in a minimum-coverage Tennessee policy, particularly given the state's substantial uninsured driver population.

How insurers determine your rate in Tennessee

Tennessee insurers use your driving record, zip code, vehicle type, age, annual mileage, and credit-based insurance score to calculate your premium. Nashville, Memphis, and Knoxville produce higher premiums than rural Tennessee due to accident frequency, vehicle theft rates, and repair costs in those urban markets. Nashville in particular has seen significant population growth that has increased traffic density and accident frequency in the metro area. At-fault accidents and moving violations typically affect your rate for three to five years. Because each insurer weights these factors differently, comparing quotes from multiple carriers at renewal is the most reliable way to find the most competitive rate for your specific profile.

SR-22 requirements in Tennessee

An SR-22 in Tennessee is a certificate filed by your insurer with the Department of Safety and Homeland Security confirming you carry at least the state minimum liability coverage. You may be required to maintain an SR-22 after a DUI conviction, after driving without insurance, or after certain serious traffic violations. The requirement typically lasts three years from the triggering event, and your license remains suspended until the SR-22 is on file. If your policy lapses during the SR-22 period, your insurer must notify the Department of Safety and Homeland Security immediately, which reinstates your suspension. Not all insurers handle SR-22 filings, so drivers who need one should specifically look for carriers that serve the non-standard auto insurance market in Tennessee.