Almost all states have laws requiring car insurance. This is true for Tennessee as well. Auto insurance in Tennessee is actually taken very seriously, with stiff penalties for not carrying it. Anyone living in the state should know and understand the legal requirements.
It is important to understand that state insurance requirements are in place to protect everyone on roadways, but specifically, they offer you protection against financial difficulties should you cause an accident. Required coverage usually only covers damages you may create if you are at fault in an accident. You can usually pass on more extensive coverage that would cover your own vehicle and personal expenses in an accident. Typically, state required coverage is referred to as “minimum coverage,” whereas optional coverage is called “full coverage.”
In Tennessee, these are the required coverages and limits all drivers must carry:
- Bodily injury liability: pays for injuries or death to another person; $25,000 per person and $50,000 per accident
- Property damage liability: pays for property damage to other’s property; $15,000
Additional coverage, such as uninsured/underinsured motorist, collision and medical payments, are optional and not required under the law. However, just getting the minimum required is often not recommended because it doesn’t fully protect you. In the eyes of the law, though, you are legal as long as you have the minimum auto insurance in Tennessee.