Tennessee has one of the lowest car insurance rates in the country. LowestQuotes.com’s Insurance Index reports that an average consumer in Tennessee pays an average annual premium of just $976, 32% lower than the national average of $1,420. Not only that but due to intense competition over the last 9 months among leading auto insurance providers here, Tennessee drivers are able to find great rates now by comparing quotes online and switching their auto insurance provider.
Tennessee Car Insurance Regulations & Requirements
Tennessee is a Tort system state, which means that someone will be found at fault in a car accident. If you are the person that is found to be at fault for said accident you and your insurance company will have to make recompense for the injury and damages that your car caused.
Tennessee requires that you have a minimum of $25,000 in bodily injury insurance. This is to cover the person that you hit and all the persons in their car to a total of $50,000. This may seem like it is a lot of money but it really isn’t. You will want to consult with an insurance person to get a real feel for what is a reasonable amount of insurance to have, because anything that is not covered by your insurance has to be paid by you. It is not unheard of for people to end up losing their homes due to particularly bad accidents and being horribly underinsured.
Tennessee also requires that you have $15,000 in property damage insurance to either repair or replace anything that you damage or destroy in the accident. Again, this may seem like an adequate amount of money, but when was the last time you priced vehicles? If you severely damage even a newer Toyota you may be looking at least $30 or more to repair or replace it. Do you have enough money just sitting around to pay the difference? If you are not sure what that is, that comes in around $15,000 or more. Most people do not have this kind of money but if you run into this situation that is what you will have to do.
If you do not maintain insurance on your car in Tennessee you will be looking at penalties although it is only a class C misdemeanor you will be charged no more than $100, you will have your driver’s license suspended. You will have to pay a $20 reinstatement fee to get it back which can be done online once you can show that you are back in compliance with the state requirements. You will be required to show that you have insurance if you are pulled over by a police officer or if you are in a vehicle accident.
Having enough insurance cannot be underestimated. It is far cheaper to pay the premiums and have enough coverage in the event that you are in an accident that to not have enough and have to pay it out of your pocket.