State
Tennessee car insurance requirements and laws
Tennessee is an at-fault state requiring 25/50/25 liability. UM coverage is included unless rejected in writing, and injury suits have a one-year deadline.
Minimum coverage
| Liability limits | 25/50/25 |
|---|---|
| Bodily injury, per person | $25,000 |
| Bodily injury, per accident | $50,000 |
| Property damage | $25,000 |
Rules
| Fault system | At-fault — the driver who causes a crash is responsible for the other side's injuries and damage |
|---|---|
| PIP required | No |
| Uninsured motorist required | No — uninsured motorist coverage is included at your liability limits unless you reject it or choose lower limits in writing |
| Negligence rule | Modified comparative fault (50% bar) — you recover only if your fault is less than the other party's |
| SR-22 | Yes — after an uninsured crash or certain suspensions, an SR-22 from your insurer is required before your license is reinstated |
| Penalty for driving uninsured | Failing to show proof of insurance can lead to license suspension; the state's insurance verification program can suspend registrations, and an uninsured crash can mean revocation until you post security and file an SR-22 |
| Time limit to sue | 1 year (personal injury); 3 years (property damage) |
Costs and context
| Average cost | $1,050 average annual expenditure (NAIC, 2023 data) |
|---|---|
| Uninsured drivers | About 1 in 5 drivers (21.3%, Insurance Research Council, 2023) |
Regulator
| Insurance regulator | Tennessee Department of Commerce & Insurance |
|---|---|
| Consumer hotline | 800-342-4029 |
| Website | tn.gov/commerce/insurance.html |
| Address | 500 James Robertson Pkwy, Nashville, TN 37243 |
Minimum car insurance requirements
The Tennessee Department of Commerce & Insurance states the state's minimum liability limits as 25/50/25. The state's Financial Responsibility Law requires drivers to show proof of insurance when charged with any violation or when involved in a crash, whoever was at fault. The Department of Revenue runs the electronic insurance verification program, called Drive Insured TN, that checks registered vehicles against insurers' records.
| Coverage | Minimum required |
|---|---|
| Bodily injury liability | $25,000 per person / $50,000 per accident |
| Property damage liability | $25,000 per accident |
| Uninsured motorist | Included at your liability limits unless rejected in writing |
| Personal injury protection | Not required |
Tennessee insurers must include uninsured motorist (UM) coverage in auto policies at your bodily injury limits. A named insured can reject it, or choose lower limits, in writing. The Department of Safety's driver handbook describes UM as coverage for the damage uninsured people cause.
What the minimums mean in practice: suppose you cause a crash in Memphis that injures one driver, who runs up $40,000 in medical bills. Your liability coverage pays $25,000 for that person. The injured driver can sue you for the remaining $15,000 plus lost wages and pain and suffering. Your assets and future wages could be exposed. The liability limits decoder and how much liability coverage do you need? can help you choose higher limits.
Fault system and what it means after a crash
Tennessee is an at-fault state. The at-fault driver's liability insurance pays the other side's injuries and property damage, and injured people can sue without meeting a threshold.
Tennessee uses modified comparative fault, adopted by the state Supreme Court in 1992. You can recover only if your fault is less than the defendant's, so a 50/50 split leaves you with nothing. Your award is reduced by your share of fault. See comparative vs contributory negligence.
Watch the deadline. Tennessee gives you just one year to file a personal injury lawsuit, one of the shortest windows in the country. Property damage claims have three years. Insurers know these deadlines, so injured people should not let settlement talks run past them (statutes of limitations for car accident claims).
Optional coverage worth considering here
- Keep uninsured motorist coverage. The Insurance Research Council estimated 21.3% of Tennessee drivers were uninsured in 2023, among the highest rates in the country and well above the national 15.4%. Rejecting UM leaves you relying on your health insurance and lawsuits against people who may have nothing to collect (uninsured and underinsured motorist coverage explained, what to do after an accident with an uninsured driver).
- Uninsured motorist property damage or collision, so an uninsured driver doesn't leave you paying for your own repairs.
- Comprehensive for storms, flooding, hail and theft (hail, flood and storm damage: filing a comprehensive claim).
- Medical payments, since Tennessee has no PIP requirement.
What drives rates in Tennessee
The NAIC's average expenditure in Tennessee was $1,050 in 2023, below the $1,281.60 national average. The high share of uninsured drivers raises the cost of UM coverage. Nashville and Memphis see more congestion, theft and claims than rural areas, and severe spring storms and flooding affect comprehensive costs across the state. Your record, the car you drive and your credit-based insurance score also shape your price (how car insurance rates are calculated).
Penalties for driving uninsured
The Department of Safety's handbook lists failure to show evidence of insurance or financial responsibility as a reason a license can be suspended. Separately, the Department of Revenue's verification program notifies owners whose vehicles it can't match to a policy. Owners can verify coverage or pay fees online, and unresolved cases can lead to registration suspension.
The consequences are steepest after a crash. If you were uninsured and another party files a claim with the Department of Safety, you must take one of three steps:
- Show that you had liability insurance at the time of the crash
- Obtain notarized releases from everyone who filed a claim
- Post a cash or corporate surety bond for the amount of the claims
If you do none of these, your driving and registration privileges are revoked. You can request a hearing before the revocation takes effect. See penalties for driving without insurance and state insurance verification systems.
SR-22 and high-risk drivers
The Department of Safety requires an SR-22 from a liability insurer, along with a reinstatement fee, before restoring a license revoked for failing to show financial responsibility after a crash. SR-22 filings are also part of reinstatement after other revocations, such as DUI. Tennessee drivers needing a filing can shop both standard carriers and nonstandard auto insurance specialists (SR-22 insurance explained, Car insurance after a DUI).
Insurers with a strong presence in Tennessee
Farm Bureau Insurance of Tennessee, based in Columbia, is the state's Farm Bureau insurer and a major home-state carrier (Farm Bureau insurance: membership, eligibility and how it works). State Farm, Progressive, Allstate and GEICO lead the national competition. Erie Insurance sells through independent agents in Tennessee. Nashville-based First Acceptance Insurance focuses on drivers seeking basic, low-cost coverage.
Where to get help
The Tennessee Department of Commerce & Insurance Consumer Insurance Services line is 800-342-4029 (615-741-2218 locally). The department mediates insurance disputes as a neutral third party. Its offices are at 500 James Robertson Pkwy, Nashville, TN 37243, and it is online at tn.gov/commerce/insurance, where you can file a complaint (how to file a complaint against a car insurance company). Insurance verification notices are handled by the Department of Revenue, and license revocations by the Department of Safety and Homeland Security. Because the one-year injury deadline is so short, contact a licensed attorney promptly after a serious crash.
Sources
- tn.gov/commerce/insurance/consumer-edu/auto.html
- tn.gov/commerce/insurance/consumer-resources.html
- tn.gov/commerce/insurance.html
- tn.gov/revenue/title-and-registration/drive-insured-tennessee.html
- tn.gov/content/dam/tn/safety/documents/DL_Manual.pdf
- iii.org/fact-statistic/facts-statistics-uninsured-motorists
- content.naic.org/article/naic-releases-20222023-auto-insurance-database-report
- insurance.maryland.gov/Consumer/Documents/agencyhearings/NAIC%202023%20Auto%20Insurance%…
Requirements were checked against these sources on the review date below. Laws change - confirm with the state insurance regulator or motor vehicle agency.
Profile last reviewed October 4, 2026