Tennessee auto insurance requirements are 25/50/15 of liability coverage, in thousands of dollars. There are no other automobile insurance requirements in this state. The average premium cost in TN is $1,368 per year, which is $200 less than the nationwide average. It’s no wonder, as Tennessee is the most affordable state by the average cost of living. The well-known cheap auto insurance carriers that underwrite vehicle insurance policies in TN include: Erie, GEICO, Allstate, Permanent General, State Farm, Nationwide, Progressive, Liberty Mutual, Safeco, and Alfa Vision.
There used to be a time when TN didn't require car insurance, if one could prove that they are capable of covering an accident from their own funds or assets. That is not the case any more. Now, you are required to purchase the amount/type of insurance set by Tennessee state law. Most experts believe 25/50/15 of liability insurance to be insufficient to cover a major car accident, and recommend increasing these levels a few times for adequate protection. The consequences of causing a serious car accident and not having enough insurance to cover a victim’s losses can be financially devastating for the at-fault party, so it makes sense to increase your liability coverage adequately. However, if you cannot afford greater coverage, it is better to stick with cheap auto insurance in Tennessee than none at all.
Liability covers you only for the losses that the other party incurs, when you are at fault. Your own losses aren’t covered whatsoever. Therefore, if you are at fault and incur losses as well, they will not be covered by this coverage. If the other party is at fault and leaves from the scene or turns out to be uninsured, liability will not cover your losses either. To be covered for these situations as well, you would need to buy additional coverage types, aside from the basic cheap auto insurance quotes: PIP (or medical payments), collision, comprehensive, uninsured motorist, and underinsured motorist.
PIP (personal injury protection): this coverage is so essential that it’s mandatory in 16 US states. PIP will pay for your medical bills, as well as pay the medical expenses of other passengers in your vehicle, regardless of whose fault the accident was. PIP can also cover a part of lost wages and pay for funeral expenses.
Medical payments: this coverage is like “curtailed PIP” – it only pays for medical bills for you and other passengers in your vehicle, regardless of whose fault the accident was. It does not cover lost wages or funeral expenses. It costs less than PIP, but it covers less as well.
Collision: this coverage is often purchased together with comprehensive; together, they form the “physical damage” coverage package. Collision pays to repair a vehicle after a collision with another vehicle or object.
Comprehensive: this coverage is often purchased together with collision; together, they form the “physical damage” coverage package. Comprehensive pays to repair a vehicle after damages incurred from fire, vandalism, theft and others.
Uninsured motorist (UM): this coverage can be purchased for property damage, bodily injury, or both. It covers you if you become a victim of an uninsured driver.
Underinsured motorist (UIM): this coverage can also be purchased for property damage, bodily injury, or both. It covers you if you become a victim of an underinsured driver. For more information, visit the Tennessee Department of Commerce & Insurance.