Short answer: Tennessee requires 25/50/25 liability: $25,000 per person and $50,000 per accident for injuries, and $25,000 for property damage. Uninsured motorist coverage is included in Tennessee policies unless you reject it in writing. Tennessee checks coverage through its Drive Insured verification program and bars recovery from the other driver if you're 50% or more at fault.
The financial responsibility law
The Tennessee Department of Revenue, which runs the state's insurance verification program, explains the minimum liability requirement:
| Coverage | Minimum |
|---|---|
| Bodily injury or death, per person | $25,000 |
| Bodily injury or death, per accident | $50,000 |
| Property damage, per accident | $25,000 |
Insurance is the usual way to comply. The law allows a few other forms of financial responsibility for drivers who qualify, but almost everyone uses a policy. Collision and comprehensive aren't required by the state, though lenders require them on financed and leased vehicles.
Uninsured motorist coverage: included unless rejected
Under Tenn. Code §56-7-1201, auto liability policies must include uninsured motorist coverage unless the named insured rejects it in writing. A signed rejection generally stays in effect at renewal unless you apply for new coverage. Tennessee's UM also responds to underinsured drivers in many situations, up to your limits.
Before signing a rejection, compare the price. UM is often among the most affordable protections on a policy.
Fault: the 50% rule
Tennessee is an at-fault state with modified comparative fault, adopted by the Tennessee Supreme Court in McIntyre v. Balentine (1992). You can recover damages reduced by your share of fault, as long as you're less than 50% at fault. At 50% or more, you can't recover from the other driver.
How Tennessee checks coverage
Tennessee's insurance verification program, called Drive Insured, matches vehicle registrations with insurer reports. Vehicles that can't be verified can trigger notices, and failure to resolve them can lead to registration suspension and fees. Police can also ask for proof during traffic stops and after crashes.
Where the minimum falls short
- Hospital bills. A single serious injury can exceed $25,000.
- Interstate traffic. I-40, I-24 and I-65 bring high-speed crashes, including with commercial trucks.
- Severe weather. Tornadoes, hail and flooding damage cars that only comprehensive covers.
- Personal exposure. Damages above your limits can come back to you personally.
Choosing better limits
Drivers with homes or savings often choose 100/300/100 or higher, with matching UM. If you'd like an umbrella policy, the umbrella insurer will set minimum auto limits. See how much umbrella insurance do I need.
Moving to Tennessee
New residents must register their vehicles in Tennessee within the state's deadline, and the registration will be checked against insurance records. Get a Tennessee policy, or update your existing policy to your Tennessee address, before you register.
Common scenarios
A driver with 25/50 coverage causes a crash that leaves you with $120,000 in damages. If you carry $100,000 of UM that responds to underinsured drivers, your policy may help with the gap.
You get a Drive Insured notice after switching insurers. Send proof of your new policy to clear the notice.
You're found 50% at fault. Under Tennessee's rule, you can't recover from the other driver.
Hail damages your car in Nashville. Comprehensive pays, minus your deductible.
Key terms
- Split limits (25/50/25): per-person injury, per-accident injury and property damage limits, in thousands.
- UM rejection: the written form you sign to decline uninsured motorist coverage.
- Modified comparative fault: recovery reduced by your fault, and barred at 50% or more.
- Drive Insured: Tennessee's insurance verification program.
Questions to ask your broker
- Did I reject UM, and what would it cost to add?
- Do I need an umbrella policy, and what auto limits would it require?
- What would 100/300/100 cost?
- What's my comprehensive deductible?
Bottom line
Tennessee's 25/50/25 minimum keeps you legal, but it's a floor. Keep UM, consider higher limits, and add comprehensive for Tennessee weather. Compare states in our car insurance minimums by state table.
Contact Alishahi Insurance or call (877) 711-4545. See insurance in Tennessee and auto insurance.
Frequently asked questions
What is the minimum car insurance in Tennessee?
25/50/25 liability: $25,000 per person and $50,000 per accident for injuries, and $25,000 for property damage.
Is uninsured motorist coverage required in Tennessee?
It's included unless the named insured rejects it in writing.
How does fault work in Tennessee?
You can recover if you're less than 50% at fault, reduced by your share.
What is Drive Insured?
Tennessee's program that verifies insurance on registered vehicles.
Does Tennessee minimum insurance cover hail damage?
No. Hail damage to your car is covered by comprehensive.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.