How much car insurance do I need in Tennessee?

I just moved to Tennessee and I need to purchase car insurance. How much car insurance do I need in Tennessee? Do I need full coverage auto insurance? What are the risks of driving uninsured? 

Answer:

If you own a vehicle in Tennessee, you are required to purchase auto insurance. Each state has certain minimum requirements for auto insurance. In Tennessee, you must have a minimum amount of liability coverage. Liability insurance covers other people’s injuries and property damage if you cause an accident.

What Are The Minimum Liability Insurance Limits in Tennessee? 

A: The minimum liability insurance limits that you must purchase in Tennessee are:

Bodily Injury Liability Coverage

• $25,000 per person injured in an accident
• $50,000 per accident (limit for all persons injured in an accident)

Property Damage Liability Coverage

• $15,000 per accident

What Does Auto Liability Insurance Pay For in Tennessee?

A: Auto liability insurance pays for medical bills and property damage for everyone involved when you cause a car accident. The minimum coverage limit required by the state of Tennessee may sufficiently cover damages from minor accidents. But if you cause a serious accident, you could be underinsured.

If you cause an accident, you’re responsible for paying for the medical bills for other drivers and their passengers, their vehicle repair costs, and even attorney fees and settlements or judgments levied against you if you are sued for negligence. If these exceed the limits of your Tennessee car insurance, you’d have to pay the rest out of pocket. 

What Does Auto Liability Insurance Not Pay For in Tennessee?

A: What’s more, liability insurance offers no coverage for damage to your own vehicle, your own injuries, or the injuries of your passengers. If you can afford it, raising your liability limits and adding some options like comprehensive and collision coverage offer you far greater protection. You should also consider purchasing uninsured and underinsured motorist coverage that helps you cover your losses if an uninsured or underinsured driver hits you. 

Do I need full coverage car insurance in Tennessee?

A: Full coverage auto insurance is a phrase used to designate a comprehensive car insurance policy that includes a number of valuable coverage types. Full coverage car insurance in Tennessee provides you with a significant amount of protection from liability claims and damage to your vehicle.

What Is Considered to Be Full Coverage in Tennessee? 

A: The definition of full coverage auto insurance varies from company to company; there is no single definition or package of coverage for a full coverage auto insurance policy. While every state requires drivers to carry a minimum amount of liability coverage, most experts agree that a full coverage auto insurance plan should not only cover the state minimum liability requirements, but also should offer you some protection for physical damage to your vehicle. 

• Liability coverage protects you from damage you cause to other cars and/or other drivers in an accident for which you are at fault. It includes bodily injury and property damage liability coverage. 
• Physical damage protection for your vehicle includes both comprehensive and collision coverage. Comprehensive coverage reimburses you for damage to your vehicle for things like broken glass, theft, vandalism, hail, and more. Collision coverage protects you from damage caused by direct impact in an accident. 

Some will say that the combination of comprehensive, collision, and liability coverage is full coverage auto insurance. Others consider full coverage to include a variety of other options that enhance the amount of protection you have. These include:

• Medical payments coverage: This coverage pays for medical expenses for you and your passengers regardless of who is at fault, and can take over if your expenses exceed your health insurance coverage limits.
• Uninsured/underinsured motorist coverage: This coverage helps you pay for bills that the other driver’s insurance should have paid for, if the at-fault driver either has no insurance or has insufficient insurance. 
• Emergency road service/roadside assistance/towing and labor: This optional coverage provides convenient assistance and financial protection in the event that you need help with towing, locksmith service, flat tire repair, battery jump-start and more. 
• Rental car coverage: This optional coverage reimburses you for rental car expenses if you cannot use your vehicle while it is being repaired after an accident. 

There are several other coverage types and endorsement options that you can add to your auto insurance policy. Remember that even with “full coverage,” you will likely still have out-of-pocket expenses in the event of a covered loss. If damage you cause exceeds your liability limits, you could be legally liable for the difference. And you will always have to pay your deductible before your comprehensive or collision coverage kicks in. 

What are the risks of driving uninsured in Tennessee?

A: There are a lot of risks involved if you drive uninsured in Tennessee. First, driving uninsured is against the law. If you don’t have coverage (or can’t demonstrate financial responsibility as defined by Tennessee law), you risk getting fined or even having your license and registration suspended. 

Unfortunately, some people disregard the law and drive without coverage. Uninsured drivers put everyone else on the road at risk from the financial consequences of crashes that they cause and can’t pay for. If you cause an accident, you’re responsible for paying for the damages and injuries that result. If you don’t have insurance coverage, how would you pay?

Is There Protection Against Uninsured Drivers in Tennessee? 

A: With 20% of drivers on the roads in Tennessee being uninsured (5^th highest in the nation), it’s a good idea to protect yourself from them as well. You can add uninsured and underinsured motorist coverage to your policy. It pays for your injuries and vehicle damage if an uninsured driver hits you, or if someone with insurance coverage that’s insufficient to cover your losses hits you. 

It is one of the few ways that you can protect yourself financially if one of these drivers causes an accident.