Do I Need Car Insurance in Tennessee?

Minimum auto insurance coverage rules, penalties for driving without insurance in Tennessee, and more.

By , J.D. University of San Francisco School of Law
Updated 8/18/2025

Tennessee law requires vehicle owners to show their "financial responsibility" for any car accident they might cause, and most Tennesseans do this by carrying car insurance that meets or exceeds these required liability coverage minimums:

  • $25,000 per person injured or killed in an accident caused by the owner/driver of the insured vehicle
  • $50,000 total per accident for injuries or deaths resulting from an accident caused by the owner/driver of the insured vehicle
  • $15,000 for property damage resulting from an accident caused by the owner/driver of the insured vehicle.

Let's take a closer look at Tennessee's car insurance rules and how they'll likely come into play after a traffic accident.

What Is Tennessee's Financial Responsibility Law?

As we touched on above, under Tennessee's "financial responsibility" law, vehicle owners must be able to show proof of their ability to cover financial losses resulting from any car accident they might cause.

Besides purchasing liability car insurance in line with the state's minimums (as detailed at the top of this article), Tennessee vehicle owners can:

  • post a bond with the Department of Revenue for $65,000, or
  • make a cash deposit with the Department of Revenue for $65,000.

What Does Liability Car Insurance Cover in Tennessee?

Liability coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits. You can (and in some situations should) carry more coverage to protect you in case a serious crash results in significant car accident injuries and vehicle damage.

Once policy limits are exhausted, you are personally on the financial hook, so higher insurance limits can help protect your personal assets in the event of a serious crash.

Who Is Covered Under My Car Insurance in Tennessee?

Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.

Remember that liability coverage doesn't apply to your own injuries or vehicle damage after a Tennessee car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses. For example, collision coverage (optional in Tennessee) can pay for repairs to (or replacement of) your damaged vehicle after a car accident. Note that collision or comprehensive might be required under the terms of a vehicle lease or financing agreement.

Does Tennessee Require Uninsured Motorist Coverage?

No. Uninsured motorist (UM) coverage is not required in Tennessee, but this kind of coverage protects you if the at-fault driver has no insurance, or if you're injured in a hit and run accident. Keep in mind that UM coverage will not apply to vehicle damage.

What Are My Claim Options After a Tennessee Car Accident?

If you've suffered any kind of injury or incurred property damage because of a car accident in Tennessee, you might be able to:

  • file a claim with your own car insurance company, regardless of who was at fault for the accident, if you've got specific kinds of coveragesuch as medical payments coverage (for injuries) or collision coverage (for vehicle damage)
  • file a claim directly with the other driver's insurance carrier (if it's pretty clear the other driver was at fault) and negotiate a settlement that covers your losses, or
  • file a personal injury lawsuit in civil court against the at-fault driver (note that the driver's insurance coverage would still come into play in the rare event your lawsuit goes all the way to trial, and your lawsuit could settle out of court at any point).

Can I Show Digital Proof of Car Insurance in Tennessee?

Yes. Tennessee has something of an automated electronic system that matches up vehicle registration information with coverage details provided by insurance companies. If this electronic system can't confirm that your vehicle is covered, you'll receive a notice from the state's Department of Revenue, directing you to Drive Insured TN, where you can provide proof of your compliance with the state's financial responsibility rules.

If a law enforcement officer asks you to provide proof of insurance (during a traffic stop or after an accident), you can do so through MyTN, the state government's official mobile app. Of course, you can still carry a physical copy of your company-issued insurance card or other documentation showing compliance.

What Happens If I Drive Without Insurance in Tennessee?

According to the Tennessee Department of Safety & Homeland Security, if you're unable to demonstrate proof of financial responsibility:

  • you could face conviction of a Class C misdemeanor punishable by a fine of up to $300
  • your vehicle could be towed, and
  • your driver's license could be suspended.

That's on top of the financial hit you could take if you're in a car accident and you don't have car insurance.

Getting Help After a Tennessee Car Accident

If you've been injured in a car accident in Tennessee, you might need more than just the basic car insurance rules. Get more information on when you might need a car accident lawyer.

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