Features of an Auto Insurance Policy in Tennessee

Licensed drivers and automobile owners in Tennessee need to produce proof of financial responsibility, which can be obtained in several ways. One would be to purchase auto insurance with coverage for injuries and damages likely to arise from an accident. Another method of meeting the financial responsibility law of the state would be to make a cash deposit or bond for the amount of $60,000 with the Tennessee Department of Safety. The last option would be to obtain a certificate of self-insurance. The state exercise a Tort system, making drivers financial responsible for any at-fault accidents caused. Drivers are required to carry proof of financial responsibility any time they drive a car, as any police officer are required to check for this document whenever they stop motorists for traffic violation or for routine safety check. Motorists can present either an insurance card given by the provider or proof from the Department of Safety. Those who are unable to provide proof of financial responsibility stand to have their driver’s license suspended and be imposed with fines, though violation can be dismissed if the person involved manages to purchase auto insurance or obtain proof of financial responsibility before the scheduled hearing. Otherwise, the person will be convicted of Class C misdemeanor.

Those who have been convicted of driving under influence in Tennessee may also be required to obtain a SR-22 form, which provides proof of financial responsibility in the future and is needed for availing a DUI-restricted license.

Those who opted to purchase auto insurance must have coverage with at least the minimum amount imposed by the state of Tennessee. To elaborate, minimum amount of coverage for bodily injury per person is $25,000 while the minimum coverage for total injuries per accident is $50,000. In addition, minimum amount of coverage for property damage is $10,000. These limits are popularly termed the 25/50/10 formula. However, due to the rising cost of medical services as well as in repairing damaged vehicles, most vehicle owners and licensed drivers in the state purchase coverage with coverage amounting to $100,000 per bodily injury per person, $500,000 for total coverage, and $50,000 for property damage. Most policyholders also purchase additional coverage, such as uninsured motorist bodily injury as well as collision and comprehensive coverage that normally has $500 deductibles. A deductible is the amount that a policyholder needs to pay out of his pocket in order to acquire claims settlement.

Having a teenager in the household may also mean an increase in the cost of auto insurance premium, as teenagers are typically considered high-risk drivers due to their inexperience and often hasty behavior. However, one other option worth exploring would be to obtain teen auto insurance, though some insurance providers may also impose higher than normal rates for this kind of insurance. However, there are also several ways to obtain discounts and keep insurance rates at an affordable rate. These include setting up curfews and limits on driving times, as well as requiring the use of safety belts while driving. If the teenager is also a good student, is included in the upper half of his class and has never incurred any traffic violations, there is also great possibility of obtaining discounts from the insurance provider. It would also pay to enroll the teenager and have him or her complete a driving training class or a defensive driving course, which make him eligible for discounts as well.

Most auto insurance policies in Tennessee often carry the average cost of $690, though additional savings is possible if the consumer would take the time to shop around and compare rates offered by various auto insurance providers in the state.

We help our Tennessee customers in Memphis, Nashville, Knoxville, Chattanooga, Clarksville, Murfreesboro, Jackson, Johnson City, Franklin, TN and other cities in the Volunteer State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our Tennessee insurance agent and broker network, you can easily compare rates from multiple insurers.

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