Tennessee Car Insurance Requirements

Minimum Coverage Requirements

Tennessee requires drivers to carry minimum liability insurance of 25/50/25 — meaning $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage.

Average Car Insurance Costs in Tennessee

Drivers in Tennessee typically pay approximately $1,330 per year ($111/month) for car insurance, based on 2026 industry average data.

Car Insurance Rates by City in Tennessee

State Regulations and Key Rules

Tennessee is an at-fault state with a high uninsured driver rate. Uninsured motorist coverage must be offered but can be rejected. Tennessee uses a modified comparative fault rule (50% bar).

What Makes Tennessee Unique

Tennessee's high uninsured driver rate — approximately 20% — means roughly 1 in 5 drivers on the road may not have insurance. Uninsured motorist coverage is strongly recommended despite not being mandatory.

Uninsured Drivers in Tennessee

Approximately 20.0% of drivers in Tennessee are estimated to be uninsured. This is a notably high uninsured rate — UM/UIM coverage is strongly recommended and, in many cases, essential for adequate financial protection.

Risk Factors Specific to Tennessee

Tennessee's ice storm risk is significant — the state is poorly equipped for winter weather due to its infrequency, leading to road closures and accidents when it does occur. Memphis has elevated vehicle theft rates. Tornado risk is significant across West Tennessee.

What Tennessee’s Minimum Actually Covers

Tennessee’s minimum is 25/50/25: $25,000 per injured person, $50,000 total per accident for injuries, and $25,000 for property damage. With new vehicles averaging roughly $50,000, the $25,000 property damage limit would leave about $25,000 unpaid if you totaled an average new car — and that gap becomes your personal debt.

No-Fault, PIP, and Required Add-Ons in Tennessee

Uninsured motorist coverage isn’t mandatory in Tennessee, though insurers generally must offer it and you may have to reject it in writing.

How Tennessee Compares: Uninsured Drivers and Price

An estimated 20.0% of Tennessee drivers are uninsured — roughly 1 in 5 — one of the highest uninsured rates in the country. At that rate, uninsured motorist coverage is one of the most valuable add-ons you can buy.

Our average premium estimate of $1,330 a year puts Tennessee below the national middle in our 50-state estimates (median $1,395).

How to Save on Car Insurance in Tennessee

Memphis has the highest rates in Tennessee due to elevated theft and accident frequency — drivers there should shop quotes aggressively and consider comprehensive coverage carefully. Nashville's growth has increased traffic and accident rates — telematics programs suit commuters. Uninsured motorist coverage is essential given Tennessee's 20% uninsured rate.

• Tennessee's minimum liability requirement of 25/50/25 is the legal floor, not a safe target — since PIP isn't required in Tennessee, a separate medical payments (MedPay) add-on is worth pricing out.
• With an estimated 20.0% of Tennessee drivers uninsured, carrying uninsured/underinsured motorist coverage above the state minimum is one of the highest-value add-ons you can buy.

Frequently Asked Questions

What is the minimum car insurance in Tennessee?

25/50/25: $25,000 of bodily injury liability per person, $50,000 per accident, and $25,000 of property damage liability.

Is Tennessee a no-fault state?

No. Tennessee is an at-fault state, so the driver who causes an accident is responsible for the resulting injuries and damage, usually through their liability insurance.

How many drivers are uninsured in Tennessee?

An estimated 20.0% of Tennessee drivers are uninsured, roughly 1 in 5.

The information on this page is provided for general informational purposes only and reflects estimated industry averages and state requirements as of 2026. Insurance regulations and rates change periodically; always verify current requirements with your state's department of insurance or a licensed insurance professional before making coverage decisions. City-level and statewide premiums shown are approximations — individual rates will vary based on personal factors.