# Tennessee car insurance: liability minimums, insurance verification notices and costs

> Tennessee car insurance must meet the state's liability minimums. See how the state checks for insurance, fees for ignoring a notice and average costs.

Canonical page: https://statecover-guide.com/location/tennessee/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Tennessee requires car insurance, or another approved form of financial responsibility, with liability limits of at least $25,000 per person, $50,000 per accident and $25,000 for property damage. The state checks registered vehicles against insurance records and mails notices when it cannot find a policy, with fees if you do not respond. An estimated 21.3% of Tennessee drivers were uninsured in 2023, above the national estimate of 15.4%.

## Key facts

| Fact | Tennessee |
|---|---|
| Liability minimum | $25,000 / $50,000 bodily injury, $25,000 property damage |
| Note on the minimum | Property damage minimum is $25,000; some older third-party tables still show $15,000 |
| Fault system | At-fault |
| PIP | Not required |
| Uninsured/underinsured motorist rules | Could not be confirmed from an official source; ask the Tennessee Department of Commerce and Insurance |
| Days to answer a first verification notice | 30 |
| Coverage failure fees | $25 after a first notice, $100 after a final notice |
| Estimated uninsured drivers (2023) | 21.3% (US: 15.4%) |
| Average spent per insured vehicle (2023) | $1,049.80 a year, about $87 a month (US: $1,281) |
| Regulator | [Tennessee Department of Commerce and Insurance](https://www.tn.gov/commerce/insurance/consumer-edu/auto.html), 615-741-2241 |
| Registration and insurance checks | [Tennessee Department of Revenue (Vehicle Services)](https://www.tn.gov/revenue/title-and-registration/drive-insured-tennessee.html) |

## Why uninsured drivers matter in Tennessee

Tennessee's uninsured rate is the number that stands out. The Insurance Research Council estimated that 21.3% of drivers in the state had no insurance in 2023, compared with 15.4% across the country. Our [uninsured drivers by state](https://statecover-guide.com/blog/uninsured-drivers-by-state/) post shows where Tennessee sits.

When an uninsured driver hits you, their missing liability policy cannot pay your bills. What protects you then is coverage on your own policy:

- **Uninsured motorist (UM) coverage** generally pays for your injuries, and in some policies your car, when the at-fault driver has no insurance.
- **Underinsured motorist (UIM) coverage** pays when the at-fault driver's limits are too low.
- **Collision coverage** fixes your car whoever caused the crash, minus your deductible.

We could not confirm from an official Tennessee source whether UM coverage must be included on every policy or how it can be rejected, so this page does not state a rule. Before you sign, ask your insurer or agent whether UM is on the quote, and contact the Tennessee Department of Commerce and Insurance at 615-741-2241 if anything is unclear. The [uninsured motorist coverage guide](https://statecover-guide.com/coverage/uninsured-motorist/) explains how the coverage works in general.

## The liability minimum, and the older figure you may see

Both the Tennessee Department of Commerce and Insurance and the Department of Revenue list the same minimum: $25,000 per person, $50,000 per accident and $25,000 for property damage. Some older tables online still show a lower property damage limit. The current rule: Property damage minimum is $25,000; some older third-party tables still show $15,000.

Minimum limits are a legal floor, not a recommendation. For example, if you cause a crash that injures two people with $80,000 in combined medical bills, a policy with a $50,000 per-accident limit pays only up to that limit, and the injured people can pursue you for the rest. Our guide to [liability coverage](https://statecover-guide.com/coverage/liability/) explains how limits are split, and the [state minimums lookup](https://statecover-guide.com/tools/state-minimums/) compares Tennessee with other states.

## How to answer a Tennessee insurance verification notice

Under the James Lee Atwood Jr. Law, the Tennessee Department of Revenue checks whether registered vehicles have liability coverage. If it cannot match your vehicle to a policy, you get a letter. Here is how the process works:

1. Read the notice and note its date. You have 30 days from that date to respond.
2. If you are insured, verify your coverage online with the Tennessee Insurance Verification application, using your license plate number and the PIN on the letter. The same questionnaire lets you report an exemption or that you sold the vehicle.
3. If you are not insured, buy a liability policy that meets the state minimum right away, then verify it.
4. If you miss the first deadline, a coverage failure fee of $25 applies and your registration may be suspended. Ignoring a final notice adds a $100 fee.
5. To reinstate a suspended registration, get a qualifying policy and pay the fees online or at your county clerk's office, including any county reinstatement fee.

You can also look up your own status at any time with your plate number and VIN. That is a useful check after you switch insurers or sell a car.

## Tennessee car insurance costs compared with the US

| Measure (2023) | Tennessee | United States |
|---|---|---|
| Average spent per insured vehicle | $1,049.80 | $1,281 |
| Average liability + collision + comprehensive premium | $1,211.72 | $1,438 |

Tennessee is below the national average on both NAIC measures. A lower average does not mean every driver pays less: age, ZIP code, driving record and credit-based insurance score all move individual prices. Shopping at renewal is one of the simplest ways to test your price; see [shopping for car insurance at renewal](https://statecover-guide.com/saving/shopping-at-renewal/).

## Crash data for Tennessee

IIHS figures for 2024 show 1,197 crash deaths in Tennessee.

| Measure (2024) | Tennessee | United States |
|---|---|---|
| Deaths per 100,000 people | 16.6 | 11.5 |
| Deaths per 100 million miles driven | 1.52 | 1.19 |
| Share of deaths that were speeding-related | 19% | 29% |
| Share of deaths on rural roads | 40% | 41% |

Both death rates are above the national figures. Severe crashes combined with a high uninsured rate are a reason to look at your own UM, UIM and medical coverage, not just the liability that protects others. Neighboring [Kentucky](https://statecover-guide.com/location/kentucky/) (Choice no-fault) and [Georgia](https://statecover-guide.com/location/georgia/) (At-fault) work differently, which matters if you commute or move across the line.

## FAQ

### How does Tennessee know if my car is uninsured?

The Department of Revenue runs an electronic insurance verification program that checks registered vehicles for liability coverage. When it cannot find a policy for your vehicle, it mails a notice asking you to verify coverage within 30 days.

### What is the coverage failure fee in Tennessee?

It is $25 if you do not respond to a first notice and $100 after a final notice, according to the Department of Revenue. Your registration can also be suspended, and a county reinstatement fee may apply.

### Why do some sites show a lower property damage minimum for Tennessee?

The state's own agencies list $25,000. Older third-party tables that show a lower figure are out of date.

### Is uninsured motorist coverage required in Tennessee?

We could not confirm the rule from an official source, so we do not state one here. Ask your insurer whether UM is included in your quote, and check with the Tennessee Department of Commerce and Insurance at 615-741-2241.

### Is Tennessee an at-fault state?

Yes. Tennessee is an at-fault state, so the driver who causes a crash is responsible for the damage. Tennessee does not require PIP.

## Sources

- [Tennessee Department of Revenue, Financial Responsibility Law (Drive Insured Tennessee)](https://www.tn.gov/revenue/title-and-registration/drive-insured-tennessee/why-you-should-have-insurance.html) — minimum limits and the James Lee Atwood Jr. Law
- [Tennessee Department of Revenue, Drive Insured Tennessee](https://www.tn.gov/revenue/title-and-registration/drive-insured-tennessee.html) — verifying coverage and checking status
- [Tennessee Department of Revenue, sample first notice](https://www.tn.gov/content/dam/tn/revenue/documents/vehicle/EIVS-FirstNotice.pdf) — response deadline and first fee
- [Tennessee Department of Revenue, DIFD-15: How to Reinstate Suspended Registration](https://revenue.support.tn.gov/hc/en-us/articles/360059845152-DIFD-15-How-to-Reinstate-Suspended-Registration) — coverage failure fees and reinstatement steps
- [Tennessee Department of Commerce and Insurance, Auto Insurance 101](https://www.tn.gov/commerce/insurance/consumer-edu/auto.html) — minimum limits and consumer help
- [NAIC, 2022/2023 Auto Insurance Database Report](https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf) — average costs
- [Insurance Information Institute, Facts + Statistics: Uninsured motorists](https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists) — uninsured estimates
- [IIHS, Fatality Facts 2024: State by state](https://www.iihs.org/research-areas/fatality-statistics/detail/state-by-state) — crash death data
- [Insurance Information Institute, Background on: No-fault auto insurance](https://www.iii.org/article/background-on-no-fault-auto-insurance), as of October 28, 2026
- [Insurance Information Institute, Background on: Compulsory auto/uninsured motorists (financial responsibility limits by state table)](https://www.iii.org/article/background-on-compulsory-auto-uninsured-motorists), as of October 28, 2026
- [Alabama Department of Insurance, State Auto Insurance Laws](https://www.aldoi.gov/Consumers/StateAutoLaws.aspx), as of October 28, 2026
- [NAIC, 2022/2023 Auto Insurance Database Report](https://content.naic.org/article/naic-releases-20222023-auto-insurance-database-report), as of February 13, 2026
- [Insurance Research Council, Uninsured and Underinsured Motorists: 2017–2023 (press release)](https://www.businesswire.com/news/home/20250220231032/en), as of February 20, 2025