Tennessee Vehicle Insurance Requirements
As of 1977, the Volunteer State implemented the Financial Responsibility Law and similar to other states, began requiring motorists behind the wheel of a vehicle to have the ability to compensate for injuries and property damage that they may cause while operating an automobile.
The financial responsibility law was designed by state legislatures to ensure that individuals who are struck by another motorist while in an auto or as pedestrian are compensated for their losses. By mandating that operators keep coverage in place, the insurer will pay for damages up to the limits of the policy.
Residents can comply with these requirements in a number of ways, including a cash deposit with the department of safety, but due to the large amount which must be posted, the majority of motorists opt to purchase a Tennessee car insurance policy from a company licensed to issue coverage in the state. Policies must consist of minimum liability limits of $25,000 for bodily injury or death to one person, $50,000 for bodily injuries or death to two or more people and $15,000 for property damage per accident. If a Tennessean wishes, higher limits may be purchased for an additional premium and may be worthwhile.