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

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 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 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 explains how limits are split, and the state minimums lookup 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

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.

Crash data for Tennessee

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

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 (Choice no-fault) and Georgia (At-fault) work differently, which matters if you commute or move across the line.