Tennessee drivers are required to carry a minimum amount of car insurance to drive legally in the Volunteer State. Not doing so leaves you susceptible to fines, and you may even face jail time as a penalty for driving without insurance in Tennessee. Beyond just meeting state requirements, car insurance provides valuable financial protection for you and your vehicle. Bankrate covers how to comply with state laws and consequences for not doing so.
Minimum insurance required in Tennessee
Drivers in Tennessee are required to carry a minimum amount of liability car insurance. This insurance must be valid for each car that they own and operate within the state. If you are caught behind the wheel while failing to meet these requirements, you could face a ticket for driving without insurance and may be subject to even more severe penalties, depending on your driving record.
On January 1, 2023, Tennessee updated its minimum requirements for car insurance. The state requirements for liability insurance are as follows:
- $25,000 per person for bodily injury liability
- $50,000 per accident for bodily injury liability
- $25,000 per accident for property damage liability (increased as of January 1, 2023)
An exception for the insurance requirements for Tennessee is available but requires the driver to to show proof of financial responsibility in one of three ways. You will have to prove to the state’s Department of Revenue that you are financially capable of taking responsibility after an accident by doing one of the following:
- Post a bond with the Department of Revenue of $65,000.
- Provide a cash deposit with the Department of Revenue of $65,000.
If you are behind the wheel of a vehicle in Tennessee, you will need to carry either proof of insurance or financial responsibility to avoid penalties from the state.
Keep in mind that the minimum car insurance requirements to drive legally in Tennessee will not cover damage to your own vehicle if you cause an accident. It is also possible that the state’s required liability limits may not be enough to cover all vehicle damage or injuries to someone else if you are responsible for an accident. That’s why many insurance experts advise drivers to carry full coverage car insurance to better protect your finances in case you are involved in an accident.
Penalties for driving without insurance in Tennessee
If you decide to drive without insurance in Tennessee, or if you cannot provide proof of insurance or financial responsibility upon being stopped by the police, you could be subject to the following fines and penalties:
- $300 fine
- Having your vehicle towed
- A suspended driver’s license until you can provide proof and pass the driver’s test again.
- License and registration restoration fee of $65
Before any penalty is levied against you, the Department of Revenue will send a notification to request insurance verification and give you 30 days to respond. If you fail to respond and provide proof of insurance or financial responsibility, expect to be subject to penalties from the state. You could face even more severe penalties if you are caught driving without insurance more than once.
Getting into an accident without insurance
If you are involved in an accident while driving without insurance in Tennessee, you could face significant financial consequences. Not only could you be subject to the penalties for driving without insurance and face the potential of losing your driver’s license, you may also be required to pay out-of-pocket for any injuries or damage done as a result of the accident. Tennessee is an at-fault state, meaning the person deemed to be at fault for an accident is required to pay costs for injuries as well as physical damage to the car, and the financial costs can be steep. You could be sued by the other party, which would require you to pay additional fees for court and a lawyer. You could also face a Class A misdemeanor and pay up to $2,500 in fines and face jail time.
If you were to get into an accident without car insurance, it will also affect your premium in the future since car insurance companies base your rate on risk. When shopping for car insurance, the incident may appear in your driving history and result in a higher premium.
Frequently asked questions
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If you provide false car insurance information in Tennessee in an attempt to avoid tickets or penalties for driving without insurance, you could be charged with a Class A misdemeanor for attempting to commit insurance fraud, which is considered a crime. You could face up to 11 months, 29 days in jail and up to $2,500 in fines if you are convicted of this crime.
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The average cost of car insurance in the Volunteer State is $468 for state-mandated minimum coverage and $1,956 for full coverage, which includes optional collision and comprehensive coverage. These two types of insurance help pay for repairs or replacement to your car after an at-fault accident or other vehicle damage (such as hitting an animal). Average Tennessee rates are fairly low compared to the national averages of $633 for minimum and $2,329 for full coverage. Many insurance experts recommend that you purchase higher levels than the minimum and consider full coverage for robust financial protection, if you are able to. The state’s minimum requirements might not be enough to cover all damages and medical costs following a serious accident.
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In 2017, the James Lee Atwood Jr. Law went into effect, bringing with it stiffer penalties for failure to provide proof of insurance during a traffic stop or at the scene of an accident. The fine was increased from $100 to $300 and chargeable as a Class C misdemeanor, which could include up to 30 days in jail. Depending on your personal rating factors, Tennessee drivers might be able to find cheap car insurance for as little as $199 per year for minimum coverage, which is less than the penalty for driving without insurance.
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Yes, driving without insurance in Tennessee is illegal unless you have, as an alternative, put down a bond or provided a cash deposit with the Department of Revenue for $65,000. The majority of Tennessee residents, however, meet their requirement by purchasing a policy that is at least 25/50/25, which covers the state’s liability requirement, but provides no additional coverage. If you have a car loan or lease, your lender may require you to purchase higher levels of liability coverage and/or a full coverage policy.
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