Tennessee car insurance requirements

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Tennessee's minimum liability limits are 25/50/25, after property damage coverage rose from $15,000 to $25,000 for policies issued or renewed after December 31, 2022. The Insurance Research Council, as reported by the Insurance Information Institute, estimated that roughly one in five Tennessee drivers (20.9 percent) was uninsured in 2022, which helps explain why the state backs its law with electronic verification.

Tennessee's Department of Revenue checks insurance through the Electronic Insurance Verification System. Owners who cannot be matched to coverage receive notices, and the fees and registration suspensions that follow are changing. A Department of Revenue notice says Public Chapter 1077 (2026) amends the Financial Responsibility Law effective July 1, 2027, raising the first coverage failure fee from $25 to $500 and the continued fee from $100 to $1,000, with a new $1,500 fee for repeat lapses. Until then, the current fees apply.

Tennessee minimum liability limits

To register and drive a car in Tennessee you need at least this much liability coverage:

• $25,000 for injuries to one person in an accident you cause.
• $50,000 in total for injuries to everyone in that accident.
• $25,000 for damage to other people's property, such as their car.

Property damage was raised from $15,000 to $25,000 for policies issued or renewed after December 31, 2022, so older guides listing 25/50/15 are out of date.

Is Tennessee a no-fault state?

Tennessee is an at-fault (tort) state. The driver who causes a crash is responsible for the other people's injuries and property damage, which is normally paid by that driver's liability insurance. Injured people can claim against the at-fault driver's insurer or, in some cases, sue.

Tennessee is an at-fault state. It uses modified comparative negligence, so you can recover only if you are less than 50 percent at fault, and your award is reduced by your share of blame.

Read more: at-fault vs. no-fault states explained.

Can insurers use your credit in Tennessee?

Status: Allowed.

See how credit affects car insurance for the bigger picture.

Penalties for driving uninsured in Tennessee

Failing to show proof of financial responsibility is a Class C misdemeanor punishable by a fine of up to $300, according to the Department of Safety, and a conviction can lead to license suspension. The Department of Revenue's verification program separately charges a coverage failure fee, currently $25 and then $100, and can suspend the vehicle registration.

The Department of Revenue runs the Electronic Insurance Verification System (EIVS). Owners who cannot be matched to coverage get a notice and have 30 days to verify coverage or an exemption before a coverage failure fee and possible registration suspension.

If you are ordered to file proof of insurance, see what SR-22 insurance is.

Tips for Tennessee drivers

• If the Department of Revenue sends a first notice, respond within 30 days with proof of coverage or a valid exemption. The department says missing the deadline leads to a coverage failure fee and possible registration suspension.
• Mark July 1, 2027 on your calendar. The fees for lapses are scheduled to rise sharply under Public Chapter 1077 of 2026, so a gap in coverage that costs little today may cost far more then.
• If you bought your policy before 2023, confirm that the property damage limit was updated to $25,000 at renewal. Some older materials still show $15,000.
• Because industry estimates put Tennessee's uninsured rate near 21 percent, ask your insurer about uninsured motorist coverage, which can pay for your injuries when an uninsured driver hits you.
• Keep proof of insurance in the car. In Tennessee, failing to show proof of financial responsibility is a Class C misdemeanor with a fine of up to $300.

When you shop, compare quotes from several insurers using the same limits and deductibles, so the prices are like-for-like.

Official resources

• Insurance regulator: Tennessee Department of Commerce & Insurance
• Motor vehicle agency: Tennessee Department of Revenue - Vehicle Title and Registration

Your state insurance department can answer questions about your rights and handle complaints about insurers.

Frequently asked questions

What are Tennessee's minimum auto liability limits?

Tennessee requires 25/50/25: $25,000 for injury to one person, $50,000 for injury to all people in one accident, and $25,000 for property damage. The property damage limit rose from $15,000 for policies issued or renewed after December 31, 2022, so older articles showing 25/50/15 are outdated.

What is Tennessee's electronic insurance verification system?

The Department of Revenue's Electronic Insurance Verification System compares registered vehicles with insurer data. If your vehicle cannot be matched, you receive a notice and have 30 days to verify coverage or an exemption. If you do not, a coverage failure fee applies and your registration can be suspended.

What is the penalty for no insurance in Tennessee?

Failing to show proof of financial responsibility is a Class C misdemeanor with a fine of up to $300, according to the Department of Safety, and a conviction can lead to license suspension. The Department of Revenue also charges coverage failure fees, currently $25 and then $100, and a 2026 law raises them starting July 1, 2027.

What changes in 2027 for Tennessee uninsured drivers?

A Department of Revenue notice says Public Chapter 1077 (2026) takes effect July 1, 2027. It raises the first coverage failure fee from $25 to $500 and the continued fee from $100 to $1,000, adds a $1,500 fee for repeat lapses, and blocks registration renewals until proof of insurance is provided.

Sources

• Tennessee Department of Revenue - Updates to Vehicle Financial Responsibility Requirements (notice tr26-16)
• Tennessee Department of Revenue - DIFD-14 Penalty for Not Meeting Financial Responsibility Requirements
• Insurance Information Institute - Background on compulsory auto/uninsured motorists