Tennessee requires at least $25,000 of bodily injury liability per person, $50,000 per accident and $25,000 of property damage liability, often written as 25/50/25. You can also meet the law with a $65,000 single-limit policy, or with a $65,000 bond or cash deposit held by the Department of Revenue.
Tennessee checks coverage electronically through the Department of Revenue, and the fees for letting coverage lapse are scheduled to rise sharply on July 1, 2027.
Key Takeaways
- Tennessee requires 25/50/25 liability coverage or a $65,000 single limit. The $25,000 property damage minimum has applied since 2023.
- Uninsured motorist coverage is included at your liability limits unless you reject it or pick lower limits in writing, and underinsured drivers count as uninsured.
- The state’s electronic verification system gives you 30 days to respond to each notice. Missing them brings a $25 fee, then a $100 fee and a registration suspension. Those fees rise to $500 and $1,000 on July 1, 2027.
- Failing to show proof of insurance when you’re charged with a traffic violation or after a crash that must be reported is a Class C misdemeanor with a fine of up to $300. A first charge is dismissed if you had coverage.
Tennessee Minimum Car Insurance at a Glance
| Coverage | Requirement |
|---|---|
| Bodily injury liability | $25,000 per person and $50,000 per accident, or a $65,000 single limit |
| Property damage liability | $25,000 per accident (included in the $65,000 single limit option) |
| Uninsured motorist | Included at your liability limits unless you reject it or choose lower limits in writing |
| Uninsured motorist property damage | Must be offered, with a $200 deductible |
| Collision and comprehensive | Not required by law, but usually required by lenders and lessors |
The limits come from T.C.A. 55-12-102. Before 2023, the property damage minimum was $15,000, and at least one older state help article still shows that figure. RateFrog’s guide to liability limits explains how split limits and single limits work.
Uninsured Motorist Coverage in Tennessee
Under T.C.A. 56-7-1201, your uninsured motorist (UM) limits equal your bodily injury liability limits. Any named insured can reject UM in writing or choose lower limits, though not below the state minimums. If you reject it, your insurer doesn’t have to add it back at renewal unless a named insured asks for it in writing.
A few more rules to know:
- Underinsured drivers count. Under T.C.A. 56-7-1202, a driver whose liability limits are lower than your UM limits is treated as uninsured.
- Your UM is reduced by the other driver’s coverage. The amount available is your UM limit minus the liability limits you can collect from the at-fault driver.
- No stacking. Your UM limits don’t increase because you insure several vehicles.
- Property damage is separate. Insurers must offer UM property damage coverage with a $200 deductible. The deductible is waived when the same insurer covers your collision and UM property damage and the other driver is identified and solely at fault.
For example, if you carry $100,000 of UM and the at-fault driver has a $25,000 liability limit, your UM can pay up to $75,000. RateFrog’s guide to uninsured and underinsured motorist coverage explains how these coverages work.
Proof of Insurance in Tennessee
Under T.C.A. 55-12-139, you have to show evidence of insurance when you’re charged with a traffic violation and after a crash that has to be reported. An insurance card or binder works, and you can show it on your phone. RateFrog’s guide to getting proof of insurance fast can help if you need a card right away.
How Tennessee Checks Your Insurance
The Department of Revenue runs an Electronic Insurance Verification System (EIVS) under the James Lee Atwood Jr. Law. When the system shows a vehicle is no longer insured by the insurer on record, T.C.A. 55-12-210 sets out this process:
- The owner gets a notice and has 30 days to send proof of insurance, proof of an exemption, or a statement that the vehicle was sold or isn’t being used.
- If the owner doesn’t respond, a $25 coverage failure fee applies and a second notice gives another 30 days.
- If there’s still no response, a $100 continued coverage failure fee applies and the department suspends or revokes the vehicle’s registration.
Giving false information to the program is a Class B misdemeanor. RateFrog’s guide to what happens when insurance lapses covers the broader risks of a gap in coverage.
Changes Coming July 1, 2027
According to a Department of Revenue notice about Public Chapter 1077 (2026), these changes take effect July 1, 2027:
- The coverage failure fee rises from $25 to $500, and the continued coverage failure fee rises from $100 to $1,000.
- A new $1,500 fee applies if the same vehicle lapses into unconfirmed status more than once within three years.
- You’ll need proof of insurance, valid for at least 30 days, when you first register a vehicle. That rule runs until it’s repealed on June 30, 2029.
- County clerks will check EIVS at renewal for some owners who’ve had a noncompliance notice.
Penalties for Driving Without Insurance in Tennessee
Failing to show evidence of insurance when required is a Class C misdemeanor, punishable only by a fine of up to $300. If it’s your first violation and the court finds you had coverage, the charge has to be dismissed without costs. Later charges may be dismissed the same way. If an officer’s agency has adopted a towing policy, the vehicle may also be towed when the driver can’t show proof.
A Crash Without Insurance
If a crash kills or injures someone or causes more than $1,500 of damage to one person’s property, T.C.A. 55-12-104 requires a written report to the state within 20 days. If you were uninsured, T.C.A. 55-12-105 lets the state require security of at least $1,500 to cover the damages. If you don’t post it, your license and registrations are revoked, with at least 20 days’ notice.
SR-22 Filings in Tennessee
Tennessee ties the SR-22 to your suspension. The state says the insurance must be kept “for the length of the suspension or revocation period,” so a one-year revocation means a one-year SR-22. Common triggers include DUI, reckless driving, hit-and-run, vehicular assault or homicide, unpaid judgments and too many points. The filing has to come electronically from an insurer licensed in Tennessee, and letting it lapse can suspend your driving privileges again. RateFrog’s SR-22 guide explains how filings work.
If You Can’t Find Coverage
The Tennessee Automobile Insurance Plan (TNAIP) assigns drivers who can’t get coverage in the regular market to an insurer. According to AIPSO, you need a valid Tennessee driver’s license and a vehicle registered in Tennessee, and any agent with a Tennessee property and casualty license can submit your application. The plan’s phone number is (800) 301-6477. For most cancellations and nonrenewals, other than for nonpayment, insurers must tell you that you may be eligible for the plan.
How Tennessee Insurers Set Rates
Tennessee lets insurers use credit information, with limits. Under T.C.A. 56-5-202, an insurer can’t:
- Deny, cancel or nonrenew a policy solely because of credit information
- Base your renewal rate solely on credit information
- Take action against you solely because you don’t have a credit account
- Use an insurance score calculated with income, gender, address, ethnic group, religion, marital status, nationality, education or occupation
- Count medical collection accounts against you
Insurers also have to re-score your credit at least every 36 months or tell you each year that you can ask for a new score. RateFrog’s guide to the factors that affect car insurance rates covers the rest.
If your insurer cancels for nonpayment, T.C.A. 56-7-1303 requires at least 10 days’ notice, and 20 days for other reasons. After a policy has been in effect for 60 days, or if it’s a renewal, T.C.A. 56-7-1302 allows cancellation only for listed reasons, and never solely because of a crash that wasn’t found to be your fault. Nonrenewals need at least 30 days’ notice. RateFrog’s guide to car insurance grace periods explains what usually happens when a payment is late.
Is Tennessee’s Minimum Coverage Enough?
A 25/50/25 policy can run out quickly after a serious crash, and $25,000 of property damage coverage may not cover a newer car. If a claim is more than your limits, you could owe the rest. Keeping UM at your liability limits also protects you when the other driver has little or no insurance. RateFrog’s guide to how much car insurance you need can help you choose, and you can compare car insurance quotes at several coverage levels.
Where to Get Help
The Tennessee Department of Commerce and Insurance’s Consumer Insurance Services takes calls at 615-741-2218 or 1-800-342-4029 and accepts complaints online through its complaint page. For EIVS notices and fees, contact the Department of Revenue.
Frequently Asked Questions
What Is the Minimum Car Insurance in Tennessee?
$25,000 of bodily injury liability per person, $50,000 per accident and $25,000 of property damage liability, or a $65,000 single-limit policy. A $65,000 bond or cash deposit also meets the law.
How Does Tennessee Check Whether I’m Insured?
The Department of Revenue’s electronic verification system matches registrations with insurer records. If it can’t confirm coverage, you get 30 days per notice to respond before fees and a registration suspension apply.
Is Uninsured Motorist Coverage Required in Tennessee?
It’s included at your liability limits unless a named insured rejects it or chooses lower limits in writing.
Can I Show Proof of Insurance on My Phone in Tennessee?
Yes. Tennessee law accepts an electronic image of your insurance card on a phone or other portable device.
Sources
- T.C.A. 55-12-102
- T.C.A. 56-7-1201
- T.C.A. 56-7-1202
- T.C.A. 55-12-139
- T.C.A. 55-12-210
- Tennessee Department of Revenue: Insurance Verification Overview
- Tennessee Department of Revenue: Notice 26-16 (PDF)
- T.C.A. 55-12-104
- T.C.A. 55-12-105
- T.C.A. 56-5-202
- T.C.A. 56-7-1302
- T.C.A. 56-7-1303
- AIPSO: Tennessee Automobile Insurance Plan
- Tennessee Department of Commerce and Insurance: File a Complaint