Tennessee car insurance laws and requirements: What is changing in 2026

Tennessee car insurance laws

These limits are in place to ease the financial burden for drivers who cause an accident and for the victims. The at-fault driver knows their insurer will cover medical expenses and property damage up to a certain amount, and victims can more readily access funds to pay for accident costs.

However, a serious crash can generate medical and repair bills that exceed the state minimum limits. Once the available coverage is exhausted, the at-fault driver will be personally responsible for the unpaid amount.

Tennessee car insurance requirements

Tennessee drivers must carry liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people.. The minimum liability limit is 25/50/25. These minimum limits help pay for injuries and property damage after an accident, but if costs exceed your policy limits, you will be responsible for the remaining amount.

Tennessee requires the following coverage:

Liability. There are two parts to liability coverage. First, bodily injury liability pays medical costs associated with an accident, such as doctor visits, surgery, and prescriptions. Second, property damage liability covers repairing or replacing items such as vehicles, fences, or buildings.

Tennessee liability minimums are 25/50/25.

The average cost of a minimum coverage policy is $515. However, Erie Insurance has the lowest minimum car insurance rates, averaging $290.

Erie Insurance has the lowest minimum car insurance rates, averaging $290.

The table below shows the average rates of the top insurers for minimum coverage in Tennessee.

Company	Average annual premium	Average monthly premium
Erie Insurance	$290	$24
GEICO	$321	$27
Farm Bureau Insurance of Tennessee	$333	$28
Travelers	$397	$33
Progressive	$523	$44
Farmers	$597	$50
State Farm	$646	$54
Allstate	$808	$67
Nationwide	$978	$81
USAA	$270	$23

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Tennessee car insurance cost for minimum coverage limits

Minimum coverage car insurance in Tennessee costs an average of $515. However, the amount you pay will depend on your insurer, age, location, driving history, and other rating factors. Erie Insurance has the cheapest average minimum coverage rate at $290 annually.

On average, state minimum car insurance costs $515. Car insurance rates for minimum coverage vary by company and driver. The table below shows average annual rates for the old minimum liability limits in Tennessee. We will soon revise the rates to align with the updated limits.

The cheapest company for minimum coverage in Tennessee is Erie Insurance at an average rate of $290 annually.

State minimum coverage limit	25/50/25
Average annual premium	$515
Average monthly premium	$43

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Are the minimum coverage requirements changing in 2026 in Tennessee?

The minimum car insurance requirements in Tennessee will remain the same in 2026. Drivers who already meet the state's mandatory coverage limits do not need to change their policies. If the law changes in the future, insurers will notify customers about the new requirements and any effect on premiums.

Why do limits change?

"Several states have minimum requirements of property damage of $10,000-$25,000," says Zack Pope, agency manager at David Pope Insurance in Missouri. "[Given] the current values of vehicles, that's extremely antiquated coverage values and a main reason that I personally do not offer less than 100/300/100 to customers. It is significantly easier to see a car on the road that is valued at $100,000 than it has been in the past."

What does minimum car insurance cover in Tennessee?

Minimum car insurance in Tennessee pays for specific accident expenses up to the limits required by law. Liability insurance covers injuries and property damage you cause to other people. These limits pay for injuries, property damage, and other losses covered under Tennessee's minimum insurance requirements.

Tennessee requires drivers to carry at least a minimum amount of car insurance to help offset accident costs.

Tennessee drivers are required to carry liability coverage. Bodily injury liability helps pay for injuries you cause to others in an accident. Property damage liability covers items damaged in an accident, such as another vehicle, fence, or other property.

Tennessee is a no-fault state, meaning your insurer pays for your injuries and damages regardless of who caused the accident. The law requires you to carry personal injury protectionPersonal injury protection (PIP) pays for your medical, hospital and funeral expenses resulting from a car accident, regardless of who's at fault. (PIP) to pay medical costs, such as doctor visits and prescriptions.

Uninsured and underinsured motorist coverageAn auto insurance coverage that pays for injuries or damage if you're in an accident with a driver who has no insurance or not enough insurance. is also required. Uninsured motorist coverage helps pay for coverage when the at-fault driver doesn't have car insurance, and underinsured coverage assists when the at-fault driver doesn't have enough car insurance to cover injury and property damage costs. Without these coverages, you would have to pay for medical and repair costs that the other driver's insurance didn't cover. You may be able to opt out of this coverage.

PEOPLE ASK:

Is Tennessee minimum car insurance enough?

It may not be. Even a moderately serious accident could exceed the state minimum limits of 25/50/25, and minimum coverage may not cover all accident costs. Furthermore, state minimums do not cover your vehicle; you need to add comprehensive and collision coverage.

How much car insurance is enough in Tennessee?

The amount of car insurance you need in Tennessee depends on your assets, income, savings, and vehicle. Higher liability limits can protect you from lawsuits and major out-of-pocket expenses. Drivers with financed or leased vehicles will also need collision and comprehensive coverageComprehensive coverage helps pay for damage to your car caused by events other than a collision, such as theft, fire, vandalism, or natural disasters. It is subject to a deductible..

Drivers with substantial savings, property, or other assets should avoid choosing limits that are too low. If you cause an accident that exceeds your policy limits, the injured party may pursue your income or assets for the remaining costs.

Additionally, if you drive very little or have a short commute, your chances of causing an accident are relatively low. Also, you may choose to skip coverages such as collision and comprehensive if your car isn't worth much, or you can afford to pay for a new vehicle if yours is damaged. However, if you have a loan or lease, you will be required to carry this coverage by your lender.

Consider your financial situation when determining how much car insurance you need.

Tennessee penalties for driving without car insurance

Driving without required insurance in Tennessee may lead to fines, license suspension, registration penalties and more expensive insurance in the future. Repeated violations may result in harsher consequences. If you cause an accident without coverage, you will also have to pay medical bills and property damage costs yourself.

Failing to carry Tennessee car insurance has penalties, including those listed below. Keep in mind that repeated infractions have more severe penalties, such as jail time.

Fines	$100
Other penalties	Registration suspension
Jail time	No

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Tennessee minimum coverage cost by age group

Minimum coverage rates in Tennessee vary significantly by age because insurers use driving experience and claim risk when setting premiums. Younger drivers generally pay the highest rates, while premiums often decrease as drivers gain experience. Erie Insurance is the cheapest for teens, and Erie Insurance is the cheapest for adults.

The table below breaks down the cost of car insurance for various age groups. Erie Insurance has the best rates for teens, with minimum coverage averaging $744. Erie Insurance offers the cheapest coverage for adults at $292.

Additionally, females and males pay different rates. The average rate for a 40-year-old female is $521, and the average rate for a 40-year-old male is $509, a difference of $12.

Tennessee minimum coverage cost by city

Minimum coverage is cheapest in Johnson City, where drivers pay an average of $456. Memphis has the highest average minimum coverage rate in Tennessee at $748. Differences in traffic, accident claims, theft, and local repair costs can cause premiums to vary from one city to another.

The table below shows average minimum coverage rates for cities in Tennessee.

City	Average annual premium	Average monthly premium
Chattanooga	$548	$46
Clarksville	$561	$47
Franklin	$496	$41
Hendersonville	$563	$47
Jackson	$489	$41
Johnson City	$456	$38
Knoxville	$541	$45
Memphis	$748	$62
Murfreesboro	$552	$46
Nashville	$595	$50

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Optional car insurance coverage in Tennessee

Optional car insurance protects your vehicle and finances beyond the minimum coverage required in Tennessee. Collision and comprehensive insurance pay for damage to your own car, while rental reimbursement, roadside assistance and gap insurance address specific expenses that a state minimum liability policy does not cover.

Drivers may choose optional coverages such as:

Collision coverage. Collision coverage pays for damage to your vehicle if you cause an accident.
Comprehensive coverage. This coverage pays for damage to your car unrelated to an accident, such as fire, flood, falling debris, and hail.
Rental car coverage. This pays for a rental car if your vehicle is being repaired for a covered claim and usually has time and cost limits.
Roadside assistance coverage. If you run out of gas, need a tire changed, or have a dead battery, roadside assistance will send someone to help.
Gap coverage. Gap coverage pays the difference between what you owe on a car loan and the vehicle's value.

Why do limits change?

State lawmakers increase minimum car insurance limits when existing requirements no longer reflect current accident expenses. Rising medical bills, repair costs and vehicle values can make current limits insufficient. Raising the required coverage gives accident victims access to more insurance money and reduces the amount drivers pay.

Methodology

Insurance.com partners with Quadrant Information Services to field average car insurance rates across all 50 states and Washington, D.C. National and state average rates are based on state minimum coverage and on the following parameters:

40-year-old driver
Honda Accord LX
Good credit
A clean driving record
12-mile commute, 10,000 annual mileage

State laws were gathered from state DMV and insurance department websites.

Learn more about our data and methodology.

Tennessee car insurance laws and requirements: FAQs

Is it mandatory to have car insurance in Tennessee?

Yes. Drivers in Tennessee must maintain the minimum insurance required under state law. Mandatory coverage includes 25/50/25. Driving without the required policy can result in fines, license or registration penalties, and higher premiums when you purchase insurance again.

Will my bare minimum car insurance cover me in another state?

Yes, your car insurance will cover an eligible claim when you drive in another state. If the state where the accident occurs requires higher liability limits, your policy will automatically adjust to meet those limits for the claim. However, this does not add collision or comprehensive coverage to a minimum policy.

What happens if I drive without car insurance in Tennessee?

If you're caught driving without car insurance in Tennessee, you may face fines, a driver's license suspension, having your vehicle impounded, and increased car insurance rates. Additionally, you may face jail time, especially for multiple violations.