Drivers in the state of Tennessee are relatively lucky when it comes to low cost car insurance. Scroll down for a summary of handy facts, statistics, laws, rates and comparisons pertaining to Tennessee automobile liability insurance. Reading this will help you lower your premiums, and choose the Tennessee car insurance plan that works best for you.
Tennessee Minimum Liability Coverage
Tennessee state law mandates a minimum liability insurance coverage of no less than $20,000 to cover injuries to the driver, $50,000 “per-accident” protection for injuries to others, and $15,000 in coverage against property damage. Among insurance professionals, Tennessee’s minimum car insurance coverage requirement is known as 20/50/15.
Penalties for Driving Without Insurance in Tennessee
Tennessee has the fifth highest rate of uninsured drivers in America. Roughly one in four vehicles on Tennessee roads is uninsured. The penalty for driving an uninsured vehicle in Tennessee is a fine of as high as $300, and a suspended license until proof of insurance is provided. This might help explain the state’s high rate of uninsured drivers.
Auto Insurance Rates in Tennessee
The average yearly premium for car insurance in the state of Tennessee was $1,145 in 2016, while the national average hovered around $1,347. According to reports from Top50States.com, Tennessee’s lower than average annual premiums may be due to a strong economy, combined with a relatively low cost of living, a mild year-round climate, low average mileage per vehicle, and low population density.
Low Cost Insurance Programs in Tennessee
There are a number of different ways for Tennessee car owners to keep their insurance premiums low. To cite a few examples, buy only the minimum coverage. Pay your annual premium in one lump sum each year. Increase your deductible. Drive the kind of vehicle least likely to get stolen in your area. Install vehicle safety features.
The biggest way to reduce your annual car insurance premiums is to qualify for discounts. These may include Good Driver discounts, Accident Free discounts and Vehicle Safety discounts. Academic excellence is rewarded with a Good Student discount. Senior citizens can get a discount for completing a defensive driving course. Most carriers also offer multiple policy discounts and multiple auto discounts.
Obtaining Auto Insurance Quotes in Tennessee
The auto insurance carriers most favored by Tennessee car owners are Pride National Insurance, American Security, Encompass, Great American and Phoenix. Also popular are medium sized, locally owned carriers like Direct General, Farm Bureau and Erie. Call them for quotes. Ask about those discounts. Then simply compare rates, and select the least expensive premium package that works for you. Following these simple steps can save Tennessee drivers hundreds of dollars a year in car insurance.