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Tennessee Auto Insurance

As a tort state, Tennessee requires drivers to carry liability insurance with set minimums. The term "tort" basically designates that drivers who are found to be at fault in an accident have to pay personal injury and property damages. Unlike states with no fault auto insurance, when a person causes an accident the victim can sue for damages to health and property.

Tennessee Auto Insurance Requirements

Tennessee auto insurance requires minimum levels of liability coverage amounting to 25/50/10. When you cause an accident, the minimum liability coverage pays out $25,000 per person injured, $50,000 for all bodily injuries, and $10,000 for any property damages. Of course, these are legal minimums and should not be considered adequate coverage. A major accident can and often does result in catastrophic financial losses for drivers who do not carry adequate coverage.

Tennessee auto insurance providers offer collision, comprehensive, uninsured motorist bodily injury protection, and uninsured motorist property damage coverage in addition to the liability coverage. These types of coverage will raise your premiums, but they can add valuable coverage for your life and property. Collision and comprehensive coverage will usually be required if you do not own your car outright.

Tennessee Auto Insurance Rates

Tennessee auto insurance is relatively inexpensive compared to the rest of the US. A study recently ranked Tennessee 41st out of all the states when comparing the amount of money spent annually on car insurance. The total cost per driver for Tennessee auto insurance averaged $649 per year. On average, motorists spent $347 for liability coverage, $304 for collision coverage, and $123 for comprehensive coverage on an annual basis.

How Premiums are Calculated

Tennessee auto insurance rates change according to different variables. Every insurance company equates premiums using slightly different factors. The most common way for them to set car insurance rates is to first determine the cost to do business in the state as a whole. This number will include such items as general operating costs, dollar amount of claims, lawsuit settlements, and Tennessee traffic accident statistics.

Once they figure statewide costs of providing insurance and spread it among all drivers, they will collect information from individuals including age, sex, location, marital status, and driving record. With that information, they will place the driver in a risk category, which will enable them to associate a cost for the driver’s individual auto insurance policy.

Tennessee Auto Insurance Companies

Although most carriers calculate rates using a similar set of variables, even slight changes to the formulas can make big differences in the amount an individual driver pays for their coverage. For this reason, you should shop multiple car insurance companies in order to get and maintain low rates.

Additional Tennessee Auto Insurance Information and Resources

For more information on Tennessee auto insurance, to get specifics of Tennessee insurance laws, or to find out more on a specific insurer, contact the Tennessee Department of Commerce and Insurance at the address listed below.

Tennessee Department of Commerce and Insurance
500 James Robertson Pkwy
Fourth Floor
Nashville, TN 37243
Phone: (615) 741-2241

For other Tennessee Insurance Resources, See:

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