Cheap Auto Insurance in Tennessee

Auto Insurance Requirements in Tennessee

If you’ve registered a vehicle and Tennessee you’re probably aware that you were required to show proof of insurance when doing so. That doesn’t mean you can get away without it; you’re still required by Tennessee law to either purchase a cheap auto insurance policy or post a cash deposit with the Tennessee Department of Safety. The standard insurance option will require you to carry a minimum amount of liability coverage to protect others you may injure in an accident.

Though the state does allow individuals and businesses with more than 25 vehicles to self-insure, the option is not one that most normal drivers will choose. That’s because you still have to provide proof of your financial resources as well as leaving a cash deposit with the DOS. In either case you must have liability protection in the following amounts:

• $25,000 for bodily injury or death for a single person
• a combined $50,000 for injuries or deaths to multiple people
• $15,000 to pay for property damage

With these limits keep in mind they are all on a per-accident basis. In other words, if you were to have three accidents in the space of a year your policy may pay up to $45,000 in combined property damage losses. Also remember that liability insurance is not the same as collision and comprehensive. The latter are two separate types of coverages designed to repair or replace your vehicle if it gets damaged.

Keeping Proof in Your Car

Whether you choose to purchase an affordable car insurance policy or self-insure, you’ll need to make sure proper documentation is available during a traffic stop or accident investigation. When a police officer asks you for proof of your insurance you can supply him with an insurance ID card, a policy declaration page, or an insurance binder provided by your carrier. If you are self-insured you should have a certificate from the DOS showing as much.

If you don’t have documentation in your car, even though you have proper insurance coverage, you could be fined or given a warning. On a more serious note, if you’re caught driving without insurance you will be charged with a Class misdemeanor. Upon conviction you can receive a fine of at least $100, license suspension, and a registration STOP.

The last of the penalties prevents you from renewing the registration on your vehicle for a specified amount of time. A reinstatement fee will be assessed when you’re finally eligible to get your license and registration back.

Purchasing Extra Coverage

Some people with high-value assets, such as securities or real estate, purchase additional insurance in the form of an umbrella policy. These types of policies are catch-all products designed to cover anything not covered by the rest of your insurance policies. An umbrella policy could be your only lifeline should you be sued by another driver. Without it you could lose some of those valuable assets to court seizure and sale.

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