Understanding Liability Car Insurance in Tennessee: What Drivers Need to Know
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Like most states, Tennessee has legally mandated auto insurance minimums. Liability car insurance in Tennessee is essential to operating a vehicle in the state, so it's important to understand what you need to do to stay compliant. Otherwise, you may face fines or even jail time. Here, we dive into Tennessee car liability insurance.
Overview of Liability Car Insurance in Tennessee
It's imporant to note that liability car insurance doesn't protect you — it's designed to protect other drivers on the road. This type of insurance helps pay for the property damage and injuries sustained by another driver if you cause an accident. Since Tennessee is an at-fault state, your liability insurance is only paid out if you cause the accident and that can be proven.
Tennessee's Minimum Liability Coverage Requirements
Tennessee has what's known as 25/50/25 liability coverage requirements. These numbers refer to the minimum limits of insurance coverage a driver needs.
Bodily Injury Liability
Bodily injury liability car insurance TN requires that you have $25,000 of coverage per person in an accident, up to $50,000 per accident. This means that if you're at fault for an accident, your insurance company will pay up to $50,000 to cover the medical expenses of the other driver and a passenger.
Property Damage Liability
Tennessee requires you to have $25,000 of property damage liability per accident. Your insurance provider will pay up to $25,000 worth of damages to the other driver's vehicle or personal property when you're found at-fault for the accident.
Optional Coverage in Tennessee
The minimum Tennessee auto insurance may not be enough to cover severe accidents. Moreover, liability insurance doesn't protect you — it only protects other drivers from you. As such, 80% of American drivers opt for an auto policy that includes optional coverage like comprehensive.
Uninsured/Underinsured Motorist Coverage
Proof of insurance is required to register a vehicle, but that doesn't prevent uninsured or underinsured drivers from getting behind the wheel. Underinsured motorist coverage helps pay for your property damages and medical expenses if you're in an accident with someone who does not meet minimum coverage limits.
Collision Coverage
One of the most common optional types of Tennessee car insurance, collision coverage helps pay for property damage incurred from a crash with another vehicle or a stationary object, like a tree or guardrail. This is an important supplement to liability car insurance in Tennessee because it protects you rather than other drivers.
Comprehensive Coverage
Most drivers nationwide opt for comprehensive coverage because, as the name suggests, it gives you the most protection. Comprehensive insurance coverage covers non-collision-related incidents, like theft, vandalism, or property damage incurred by environmental hazards like fires or floods.
Personal Injury Protection (PIP)
Also known as no-fault insurance, PIP is an auto policy add-on that pays medical expenses and other damages if you or your passengers are injured in an accident. It's mandatory in some states, but not in Tennessee.
The Risks of Carrying Only Minimum Coverage
The cheapest car insurance in Tennessee is minimum coverage. While you can opt for minimum insurance coverage, it's very risky. The Tennessee Department of Transportation reported there were more than 140,000 accidents in Tennessee in 2023. Roads are unpredictable and even good drivers get into accidents from time to time.
The risks of carrying only minimum liability car insurance in Tennessee include being responsible for:
- Property damages from a fault accident or collision
- Replacing your car if it's stolen.
- Repairing vandalism or damage incurred when your car is parked.
- Medical bills if you're injured in an accident you caused.
- Medical bills for the other driver if you caused an accident.
- Replacing your car if it's destroyed in a flood, tornado, or wildfire.
Basically, if you only have minimum coverage, you're putting yourself at risk of spending a lot of money to fix your car or recover from injuries.
Factors to Consider When Choosing Liability Coverage
When shopping for liability coverage in Tennessee, it's good to know that any insurance company will meet minimum requirements. However, you'll very likely want to consider additional coverages. Some of the most important factors to think about when shopping for cheap car insurance in Tennessee include:
- Budget: Tennessee's average cost of car insurance is lower than the national average, but you should always consider what you can afford.
- Location: People living in urban areas with higher traffic density, vehicle crime rates, and living costs tend to pay more.
- Vehicle: Luxury cars, electric cars, and foreign cars tend to cost more to insure.
- Other policies: Many insurance companies offer discounts when you bundle policies like homeowners' and auto insurance.
- Deductible: Choosing a higher deductible (the amount you pay out-of-pocket before the insurance company pays) will lower your monthly insurance premiums.
- Potential discounts: Many insurance companies offer discounts for being a good driver, having low mileage, or adding multiple cars or drivers to the same policy.
Take Action: Get Insured Today!
Whether you're a new driver, getting a new car, or switching insurers and need to think about cheap liability car insurance in TN, finding the right coverage for your vehicle and budget doesn't have to be hard. Use EverQuote's comparison tools to compare quotes and coverages in real time and find the right policy for you.