What Are Tennessee’s Car Insurance Requirements?

Tennessee requires all drivers of motor vehicles to maintain financial responsibility for the damages they cause to others. This means maintaining minimum liability insurance coverage that includes $25,000 for each injury or death in each accident, $50,000 for the total injuries or deaths in each accident, and $25,000 for property damage in each accident.

Those who fail to maintain proper insurance could be charged with a Class C misdemeanor. Speak with a professional Nashville car accident attorney today.

When Car Insurance Is Required

The minimum requirements for car insurance in Tennessee apply to all parties. Anyone driving on the state’s streets must maintain auto insurance that meets or exceeds the required limits.

Failure to maintain car insurance requirements can lead to:

• $300 fine
• Loss of driver’s license and/or registration of the vehicle is suspended until proof of insurance is provided
• Loss of the vehicle, having it towed from the location, if it is found that you are driving without insurance, at your expense
• Requirement to carry SR-22 insurance, which drastically increases the cost of insurance for most individuals, as they are labeled high risk

The best way to avoid these consequences is to purchase at least the minimum required car insurance and maintain the policy on an ongoing basis.

Many times, these types of car insurance coverage limits are far from enough to meet the financial losses you may be responsible for after an accident. You could be forced to pay 100% of the costs associated with accidents you cause.

Lack of Car Insurance Requirements

If a person does not own a vehicle, they do not always need to have car insurance. Most of the time, if you rent a vehicle for a period of time, you can obtain a policy that will cover the rental itself. If you borrow a vehicle from a friend for a few days, that driver’s liability insurance follows the car and protects you.

If you drive regularly, it is beneficial and sometimes necessary to purchase car insurance to protect you. In situations where you cause an accident, you could be held accountable for the losses incurred. Without insurance, you must pay those costs from your own personal assets.

What Happens When the Other Driver Does Not Have Insurance

As noted, Tennessee car insurance laws require all drivers to maintain liability coverage. If the other driver causes an accident and you suffer losses, you can file a lawsuit against them.

However, many people purchase uninsured/underinsured motorist coverage as well. This is a policy you buy to cover yourself in situations like this. That policy will cover your losses if the other person does not have or does not have enough insurance.

If you suffer injuries in an accident that someone else causes, you have one year under the Tennessee Code § 28-3-104 to file a personal injury claim against those responsible. You can hold them accountable for any losses they cause you in an accident.

Know What to Do After a Car Accident

If you are in an accident, make sure you have the required Tennessee car insurance in place. These policies are not retroactive. With it in place, you may be able to get financial support even when the other driver is at fault for the losses you incurred. Speak to a personal injury lawyer in Nashville before you file a claim in these cases. Contact us at (615) 864-0343 for a free case evaluation.