Tennessee Auto Insurance Requirements

Tennessee's Financial Responsibility Law requires all drivers to maintain minimum limits of liability insurance or have an alternate way to pay for bodily injury and property damage they may cause. Financial responsibility can be obtained in many ways:

• Coverage by a motor vehicle or automobile liability insurance company.
• A cash deposit or bond for $60,000 with the Department of Safety.
• A certificate of self-insurance.

If you decide to purchase an auto insurance policy, your insurance company will send you a proof of insurance card or other document that lists the policy number, automobiles and drivers insured under your policy, and the expiration date. State law requires you to purchase minimum amounts of coverage, as outlined in the table below.

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Tennessee is considered a “Tort” state, which means that you, as a driver, are financially responsible for any property damage and bodily injury that is a result of an auto accident for which you are at fault. You may want to consider purchasing limits of coverage higher than those required by law to protect your assets or property, as you may be personally responsible for any damages above the policy limits.

Motor vehicle operators in Tennessee may also choose to increase their protection by adding one or more of the following options to their policy: uninsured and underinsured motorists, collision, comprehensive, and medical payments.

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Auto Insurance for Leased Vehicles in Tennessee (TN)

Most leasing companies in Tennessee typically require drivers to maintain insurance coverage which exceeds the minimums set by Tennessee state law. This is to protect you financially, as well as your leasing company, should they be held partly responsible. Most leasing companies will recommend the following amounts of insurance coverage:

• Bodily injury liability coverage: $100,000 per person/$300,000 per accident
• Property damage liability coverage: $50,000
• Comprehensive and collision coverage: $500 maximum deductible

Read about special considerations for drivers in:

• Memphis
• Nashville

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**Auto Insurance Finder is not an insurance broker or carrier. Content on this site is for comparison and informational purposes only. The products and services listed on this site may not be available in all states.

Last Updated: August 19, 2010