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Tennessee Car Insurance

Tennessee car insurance laws are very similar to the majority of other state’s laws in that there are very specific and strictly enforced minimum limits to the amount and type of coverage a motorist must carry. Failing to adhere to the required minimum coverage can range from the revocation or suspension of driving privileges to fines and penalties, and in some cases, it may even lead to having high-risk insurance imposed upon you by the court.

Tennessee Car Insurance Minimum Coverage Limits

Tennessee car insurance requirements mandate that all motorists must carry a minimum amount of financial protection, known as 25/50/15 liability, and that proof of this coverage be maintained in the vehicle at all times. 25/50/15 is a designation for the financial responsibility of the insurance policy and states that every policy must allow for $25,000 in bodily injury compensation per person, no less than $50,000 in bodily injury compensation per accident, and at least $15,000 in property damage liability to be in compliance with Tennessee state laws.

Tennessee is also what is commonly known as an ‘At Fault’ state, also called a Tort system, in which one party involved in an accident is designated as being ‘at fault’. The insurance company providing coverage for this party will be responsible for the costs, which highlights the importance of carrying more than just the minimum required coverage. Tennessee does not require motorists to carry additional protection like uninsured motorist coverage, but it is a very wise decision since there are many drivers out there that will drive without coverage or with less than adequate coverage.

Average Rates for Tennessee Car Insurance

Car insurance rates in Tennessee have dropped by around 12% since 2009, and the 2010 statistics are showing that insurance rates within the state are under the national average by about $200 at the present time. With the fierce competition brought about by the power of the Internet, now is one of the best times to reevaluate your auto coverage; hundreds of providers now offer instant online quotes and coverage comparisons for many different carriers, and good driving records and discounts can lead to even lower rates. As of 2010, the average yearly premium in Tennessee was around $1,300, while the national average was well over $1,500.

Regulation of Tennessee Car Insurance

The insurance industry in Tennessee is regulated by the Department of Commerce and Insurance, which oversees and monitors the providers, conduct of agents and brokers, and compliance with state laws. There are hundreds of providers offering deals on insurance, but all of these providers may not be qualified to offer coverage or may not offer the minimum required by state law; taking advantage of the resources available through the Tennessee Department of Commerce and Insurance can help you quickly verify the credentials of insurance providers and their compliance with the minimum state guidelines for protection.

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