Do You Need Auto Insurance in Tennessee?
Auto insurance is mandatory in Tennessee for all residents who want to operate a motor vehicle. Under Tennessee's tort system for adjudicating auto accidents, the driver who causes the accident is financially responsible for all injuries and damage resulting from the accident. Laws require drivers to have a certain amount of insurance to cover personal and property damage that they may cause.
Other People Are Reading
-
Facts
-
Tennessee residents must have insurance to drive a vehicle anywhere in the state. They must purchase a minimum amount of coverage for injuries and damage. As of 2010, the coverage minimums for bodily injury are $25,000 per person and $50,000 per accident. The coverage minimum for property damage is $15,000.
Significance
-
Tennessee residents may apply for a license and register a vehicle without presenting proof of insurance. However, when operating a vehicle they must have proof of an up-to-date insurance policy at all times. Failure to provide insurance information either after an accident or upon request from a law enforcement officer is a Class C misdemeanor. Penalties include a license suspension and a fine of up to $100.
-
Considerations
-
As a tort state, Tennessee requires one driver to be responsible for paying all damages that stem from an accident. The responsible driver is the one at fault for the accident based on the determinations of law enforcement personnel and, if necessary, a trial judge. Due to the tort system, insurance companies suggest paying for more coverage than the minimum required by law. For example, a serious accident might cause at least $100,000 in medical bills and lost wages for people in the other car. If the at-fault driver's coverage included only the required $50,000 per accident, he would have to pay another $50,000 or more out of his own pocket.
Comparisons
-
The majority of states -- 29, including Tennessee -- have tort laws under which the at-fault driver must cover all injuries and damages. Ten more states and Washington, D.C., also have tort laws, but drivers must buy policies that also include personal injury protection. In an effort to reduce litigation costs, 12 other states have no-fault insurance laws under which each driver's policy covers his or her injuries stemming from the accident, although generally the driver who causes the accident is responsible for all property damage. According to figures from Homeowners.com, which sells auto insurance policies on behalf of Travelers, Progressive and other providers, Tennessee drivers' average annual premium was $1,062 as of July 2010. This represented a 1.2 percent decrease from the previous month, but was slightly above the national average of $1,059.33.
Misconceptions
-
The legal requirements for auto insurance in tort states such as Tennessee are solely to cover injuries and damage to someone else. If you are the victim in an accident, the other driver's insurance, not your own insurance, pays for your injuries and damages to your vehicle and other property. To guard against the possibility that the driver at fault might not have sufficient coverage, you may purchase uninsured/underinsured motorist coverage. Such coverage is not mandatory in Tennessee.
-
References
Resources
- Photo Credit crash image by hazel proudlove from Fotolia.com
