What Every Driver Needs to Know About Tennessee Car Insurance
There is a rumor going around that Tennessee drivers are not required to buy car insurance before they get on the road—but the truth is that they can get into a lot of trouble if they don’t. It is true that you don’t have to have an auto liability insurance policy to register your vehicle in Tennessee, but you do have to have auto liability insurance coverage to drive on Tennessee roads. You won’t have to show proof of insurance for a parking violation, but you will have to show proof of insurance any time you are ticketed for a moving violation or you are involved in a collision causing damage to property or loss of life.
How Much Liability Coverage Does Tennessee Law Require?
Every insurance company in Tennessee is required to sell policies that provide at least 25/50/15 coverage. Your policy must pay up to $25,000 for injury to one person, up to $50,000 for injury to two or more people in the same accident, and up to $15,000 for property damage, when you are at fault. This insurance pays the other party when you cause an accident, but it does not pay you when the other party causes the accident.
Since about 25% of Tennessee drivers don’t have auto insurance despite the new laws, it is also a good idea (although the law does not require it) to add uninsured motorist protection to your policy for just a few dollars more every month. Uninsured motorist coverage pays for your injuries or damage even when the other party is uninsured. These two kinds of coverage are the bare minimum you need for driving your vehicle in Tennessee.
Proof of Insurance in Tennessee
Tennessee still relies on paper cards for proof of insurance. You must be able to present a paper document showing your proof of insurance coverage any time you are stopped by a peace officer, and you should also take your proof of insurance coverage with you when you pay your ticket in the magistrate’s court.
What happens if you are found driving without proof of insurance? Under new Tennessee law, you can be fined up to $250 the first time you are found to be driving without insurance. The second time in any twelve-month period you are found to be driving without insurance your fine will be up to $500 and your vehicle will be impounded until you get a valid Tennessee auto insurance policy.
You won’t just have to get auto insurance at higher rates. You will also have to pay the fine and towing and storage fees for your vehicle before you can drive it again. If your car is impounded in a rural or mountain location and taken to the nearest county seat, you may have to pay well over $1000 for all your fines and fees to get your car back on the road. And you have to continue making payments on your vehicle even if you can’t drive it to work.
Under the new law, it is a lot less expensive just to keep your auto insurance in force. But there are many ways you can save money on your auto insurance premiums in Tennessee.
Saving Money on Auto Insurance in Tennessee
Every auto insurance company offers lower rates to good drivers. If you don’t get a ticket for two years, you will get a lower rate. If you are not involved in a crash for three years, you will get a lower rate.
And if you take a state-approved defensive driving course, you may be eligible for lower rates.
How much lower?
- Keeping your driving record clean for 3 years or more usually lowers your rates about 20%.
- Air bags and automatic seat belts usually lower the line items for your personal injury and medical treatment on your policy about 30%.
- Tracking devices in your car can lower your comprehensive protection rates (for coverage against theft and damage while your car is parked) up to 5%.
- Anti-lock brakes may lower your premiums about 5%.
- Taking a defensive driving course may lower your rates up to 10%.
- Teenage drivers are insured for less when they get good grades, usually with a discount of about 10%.
- Insuring all of your vehicles on the same policy usually lowers your rates 10% to 30%.
And you can also save money by doing comparison shopping. Use the rate quote tools on this site to find the company that offers the coverage you need at the price that fits your budget.
