Tennessee Auto Insurance Requirements

The state of Tennessee is one of the few states in the country that does not require a minimum amount of liability insurance. Although it is not required, it is highly recommended that you obtain this type of insurance because not having it in the event of an accident could be much more costly than a monthly premium.

Because there is no regulation on the amount of insurance one must carry in the state of Tennessee, they do require that you provide proof of financial responsibility. The easiest way to satisfy this requirement is to obtain an insurance policy that will cover expenses in case of an accident. There are, however, other ways of satisfying this requirement.

If you decide that you do not want to obtain an insurance policy then you may place a cash deposit or bond with the state that you will be required to release if you are found at fault in an accident. In the event of an accident or moving violation as set by state laws, you will be required to show proof of such deposits or bonds.

If you decide that an insurance policy would be the best route for you to take you must make sure that your coverage is for at least $25,000 for one injury or death up to $50,000 for multiple injuries or deaths and no less than $15,000 for property damage per accident.

If you do not comply with the laws that are set into place by Tennessee’s state government you could be fined $100 and have your license suspended for up to one year. In order to get your license reinstated you must prove that you have made a deposit or posted a bond or that you have obtained proper insurance coverage. In addition, there will also be fees applied when you reinstate your license and your insurance premiums will be higher than they would have been before you were caught uninsured.