Tennessee Auto Coverage Requirements
This chapter covers the coverage rules a Tennessee producer must know to place personal auto correctly: the compulsory liability limits and Tennessee's tort (at-fault) system.
Compulsory Liability Limits
Tennessee's financial-responsibility law requires liability insurance at the state minimum limits. Under Tennessee Code Annotated 55-12-102, for policies effective after December 31, 2022 the minimums are $25,000 per person and $50,000 per accident for bodily injury and $25,000 per accident for property damage (25/50/25). A driver may instead use a single combined limit of $65,000 per accident, or a deposit or bond in that amount. Because these figures can change, verify the current minimums with the Tennessee Department of Commerce and Insurance.
Tort System and the Right to Sue
Tennessee is a tort, or at-fault, state: because it does not require no-fault PIP, an injured person keeps the right to sue the at-fault driver for economic and noneconomic damages. Tennessee follows a modified comparative-fault rule, under which a claimant who is 50 percent or more at fault is barred from recovery. Confirm the current framework with the Tennessee Department of Commerce and Insurance.