Tennessee's financial responsibility law requires auto liability coverage of at least $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage, when proof is required after December 31, 2022. A $65,000 single-limit policy, cash deposit, or bond can also meet that proof requirement.

Those floors are the legal minimum, not a recommendation after a serious crash.

What do the $25,000/$50,000/$25,000 numbers pay?

The figures come from the Tennessee Department of Revenue's Financial Responsibility Law page and from Tenn. Code Ann. § 55-12-102. Bodily injury liability pays people you injure, or the family of someone who dies, if you are responsible for a crash. The first number is the most the policy will pay for one person. The second is the most it will pay for everyone hurt in that accident, combined. Property damage liability pays for damage you cause to someone else's car or other property, up to $25,000 at the current legal minimum.

The property-damage floor was lower in earlier years. For proof required after December 31, 2022, the split-limit property-damage amount is $25,000, and the single-limit, deposit, and bond amount is $65,000. If you still have an older declarations page that lists $15,000 in property damage, ask a licensed agent whether the policy has been updated to the current legal floor.

Those minimums can fall short of the cost of a serious injury on I-40, I-24, I-65, or I-75, or damage to a newer vehicle. If a claim exceeds your limits, you can be personally responsible for the rest. A licensed local agent can quote higher liability limits and, if you have a house or savings to protect, an umbrella policy.

Most people meet the law with a liability policy from a company authorized in Tennessee. Other options exist, and they are narrow:

• A single-limit liability policy of at least $65,000 applicable to one accident.
• A cash deposit of $65,000 with the commissioner, as described in § 55-12-102.
• A surety bond of $65,000, also described in that statute.

If your vehicle has a regular passenger or motorcycle plate, the Department of Revenue says you need the personal auto liability coverage outlined above. If the vehicle has a commercial plate, it must be covered under a commercial auto policy. A car loan or lease may also require collision and comprehensive coverage. Those are contract terms with the lender, not a substitute for the state's liability minimums.

How do you show proof, and what happens if you drive uninsured?

Tennessee runs a web-based insurance verification program, often described as Drive Insured Tennessee, that checks whether vehicles registered in the state have the required liability coverage. The Department of Revenue says failure to obtain auto insurance, or another accepted form of financial responsibility, can result in fines and in losing the right to drive the vehicle. Keep a current insurance identification card, on paper or on a phone, and be ready to show it if an officer or a clerk asks.

If the Department of Revenue sends a notice asking you to verify coverage, use the Tennessee Insurance Verification application and the license plate number and PIN from the notice. You can also check the status of a policy by entering the plate number and the vehicle identification number. Respond promptly. Letting a lapse sit can put the registration at risk even if you later buy a policy.

When you compare quotes, ask each licensed agent to write down:

• The liability limits, not only a monthly price.
• Whether uninsured motorist coverage matches the bodily injury limits, or has been rejected in writing or reduced to a lower amount allowed by law.
• Collision, comprehensive, and medical payments, if you want those optional coverages.
• Any deductible, and how a rental car or glass claim would be handled.

A low premium with only the legal minimum can still leave you short after a crash. A higher premium is not automatically a better policy either. Compare the same limits, deductibles, and optional coverages, then decide.

If you are moving to Tennessee, buy a policy that meets these minimums before you title and register the vehicle. New residents have 30 days after establishing residency to obtain a Tennessee driver license, and a regularly licensed passenger vehicle that is not operated for hire may be operated on an out-of-state registration for no more than 30 days after residency is established.

FAQ

What auto liability limits does Tennessee require?

For proof required after December 31, 2022, at least $25,000 per person and $50,000 per accident for bodily injury or death, and $25,000 for property damage, as set out in Tenn. Code Ann. § 55-12-102 and explained by the Department of Revenue.

Is there any way to meet the law without a split-limit auto policy?

Yes, but the alternatives are limited. You can carry a $65,000 single-limit policy, or post a $65,000 cash deposit or surety bond as described in § 55-12-102.

What happens if I drive without insurance?

The Department of Revenue warns that failing to maintain financial responsibility can result in fines and in losing the right to drive the vehicle. A web-based program verifies coverage for Tennessee-registered vehicles.

Are the legal minimums enough after a serious crash?

They meet the law, but they may not meet the cost of a serious injury or a newer vehicle. Amounts above the minimum are a personal decision. A licensed local agent can quote higher limits and an umbrella policy.

Next step

Ask a licensed local agent to review your declarations page against the $25,000/$50,000/$25,000 minimums, and to quote higher liability and uninsured motorist limits. If you are registering a vehicle in Tennessee for the first time, have the policy in force before you go to the county clerk.

Sources: Tennessee Department of Revenue, Financial Responsibility Law; Tennessee Department of Revenue, Drive Insured TN; Tenn. Code Ann. § 55-12-102.

Tennessee uses a web-based insurance verification program to check whether registered vehicles have the required auto liability coverage. You can review a policy's status by entering the license plate number and vehicle identification number, and you can respond to a Department of Revenue notice with the plate number and the PIN on the letter.

The program is part of how the state enforces its financial responsibility law.

What the verification program checks

The Department of Revenue's Financial Responsibility Law page explains that, unless you qualify for an exemption, the usual way to meet the law is to carry an auto liability insurance policy. For proof required after December 31, 2022, the split-limit minimums are $25,000 per person and $50,000 per accident for bodily injury, and $25,000 for property damage. A $65,000 single-limit policy, cash deposit, or bond can also satisfy the proof requirement in Tenn. Code Ann. § 55-12-102.

The same official page says a web-based program will verify insurance for Tennessee drivers, and that uninsured drivers face fines and the risk of losing the vehicle registration if they cannot demonstrate proof of financial responsibility. The Department does not list a single fine amount on that page, so treat any dollar figure you hear from a third party with caution and rely on the notice you receive, or on a licensed agent or the Department, for the amount that applies to your case.

The type of plate matters. If the vehicle has a regular passenger or motorcycle plate (anything other than a commercial tag), it must be covered by the personal liability policy described above. If it has a commercial license plate, it must be covered under a commercial auto policy. A mismatch between the plate and the policy type can show up as a verification problem even if some form of insurance is in force.

Religious organizations and certain corporations may apply for self-insurance rather than a standard policy. The Drive Insured TN page tells those applicants to complete the Religious Organization Self-Insurance or Corporate Self-Insurance form and to email it to the Insurance Verification Unit at Insurance.Verification@tn.gov. That path is not a casual substitute for a household auto policy.

How to check your status and answer a notice

The Department of Revenue publishes a Tennessee Insurance Verification application on its Drive Insured TN page. To check the status of a motor vehicle liability policy, enter the license plate number and the VIN. Use the VIN from the vehicle or from the title, not a number copied from memory. If the result does not match what you believe you purchased, call your insurer the same day and ask whether the policy was bound, whether the VIN and plate were reported correctly, and whether there has been a cancellation or a lapse.

If you received a notice from the Department and need to verify coverage or make a payment, use the same application with the license plate number and the PIN from the notice. If a payment is due, the application directs you to a payment page. Keep a copy of the notice, the confirmation, and any receipt. Do not ignore the letter because you think the insurer already sent proof. Ask the company to confirm that it reported the policy to the verification program, and follow the Department's instructions as well.

A few situations commonly trigger a notice or a failed check:

• The policy was cancelled for nonpayment, or a renewal was not paid on time.
• You changed insurers, and the new company has not yet reported the VIN or plate.
• You replaced a vehicle or a plate and the old listing is still the one being checked.
• The vehicle is titled in one name and insured in another, or a commercial plate is sitting on a personal policy.

Fix the coverage first, then fix the record. Buying a policy after a lapse does not always erase a prior period without insurance. Ask the agent for an identification card and for written confirmation of the effective date, and use the Department's application to see whether the status has updated.

If you are new to Tennessee, put a compliant policy in force before you register the vehicle with the county clerk. New residents have 30 days after establishing residency to obtain a Tennessee driver license, and a regularly licensed passenger vehicle that is not operated for hire may be operated on an out-of-state registration for no more than 30 days after residency is established. The verification program is built around Tennessee registrations, so a new plate should be tied to a current policy from the start.

FAQ

How do I check whether Tennessee shows my auto policy as in force?

Use the Tennessee Insurance Verification application linked from the Department of Revenue's Drive Insured TN page. Enter the license plate number and the VIN.

What if I received a letter asking me to verify coverage?

Enter the plate number and the PIN from the notice in the same application. If a payment is required, follow the payment prompts and keep the receipt. Ask your insurer to confirm that it has reported the policy.

What coverage does the program expect to see?

For ordinary passenger and motorcycle plates, the current financial-responsibility minimums are $25,000/$50,000/$25,000, or a $65,000 single-limit policy, deposit, or bond. Commercial plates require a commercial auto policy.

Can a business or religious organization self-insure instead?

The Department publishes applications for religious-organization and corporate self-insurance, which are submitted to the Insurance Verification Unit. That option is limited and is not the usual path for a personal vehicle.

Next step

Check your plate and VIN in the Tennessee Insurance Verification application, then ask a licensed local agent to confirm that the policy meets the current $25,000/$50,000/$25,000 minimums and that the company has reported the correct vehicle information.

Sources: Tennessee Department of Revenue, Financial Responsibility Law; Tennessee Department of Revenue, Drive Insured TN; Tenn. Code Ann. § 55-12-102.

A standard Tennessee homeowners or renters policy does not cover flood damage to the structure or to personal belongings. Separate flood insurance, often through the National Flood Insurance Program (NFIP), usually has a 30-day waiting period before it takes effect.

The Tennessee Department of Commerce and Insurance (TDCI) and the Tennessee Emergency Management Agency (TEMA) have both stressed that point after recent storms, and it is one of the most common coverage surprises after a flood.

Why a homeowners policy is not enough

In a May 24, 2024, consumer alert, TDCI Commissioner Carter Lawrence said many Tennesseans forgo a flood policy because they mistakenly think a traditional homeowners policy will cover flood damages. "A traditional homeowners policy will not cover the costs of making repairs to a home caused by flooding," the alert states. TEMA's Getting Flood Insurance page says the same thing: standard homeowners and renters insurance policies do not cover flood damage, so flood insurance is often the only reliable way to protect a home, business, or personal belongings from that financial impact.

Flooding is not limited to a mapped high-risk zone. TEMA calls flooding the most common and costly natural disaster in Tennessee and notes that it can happen anywhere. TDCI, quoting FEMA, has reminded consumers that people who live in an area with low or moderate flood risk are, by FEMA's estimate, five times more likely to experience a flood than a fire in their homes over the next 30 years, and that more than 40 percent of NFIP claims come from outside high-risk areas. Just one inch of water in a home can cause $25,000 of damage, according to the same TDCI alert.

High-risk areas have at least a one percent chance of flooding each year. Homeowners in those areas with mortgages from federally regulated or insured lenders are required to buy flood insurance. Moderate- to low-risk areas have less than a one percent chance each year, but they can still flood, and some lenders still require a policy. Undetermined-risk areas have not had a flood-hazard analysis, but risk still exists. You can look up a property on FEMA's Flood Map Service Center.

Another myth TDCI flags is the idea that a FEMA grant will take the place of insurance. Not everyone qualifies for FEMA assistance after a disaster. Even if a federal disaster declaration is made, post-disaster FEMA grants average less than $8,000, the Department says. Prior flooding does not, by itself, bar you from buying NFIP coverage if your community participates in the program.

How to buy coverage, and what the waiting period means

If you live in one of the more than 400 Tennessee communities that participate in the NFIP, you are eligible to purchase flood insurance, TEMA says. Most homeowners, renters, and businesses in participating communities can buy a policy. Renters can purchase coverage for their belongings. For a list of participating communities, use FEMA's website. TDCI notes that a few areas in Tennessee do not participate. If your community does not participate, FEMA assistance is not available, and NFIP policies may not be sold there. In that case, ask a licensed insurance agent about private flood insurance, and compare premiums, coverage, and the waiting period.

You can purchase flood insurance at any time, but NFIP policies usually have a 30-day waiting period before the policy takes effect. Waiting until a storm is on the forecast is often too late for an NFIP policy to help with that event. If you buy a private flood policy, ask the agent about that company's waiting period, because it may differ. A common exception to the NFIP wait is a policy purchased in connection with a loan closing, when a lender requires flood insurance. Confirm the exception in writing with the issuer before you rely on it.

Some properties, especially in high-risk flood zones, may need an Elevation Certificate to determine accurate rates. TEMA says only a licensed Tennessee surveyor can complete that certificate, and that a prior survey or permit may already have one on file. Contact the local floodplain administrator to ask. The NFIP office does not store copies.

To review maps and flood-risk information, start with the FEMA Flood Map Service Center. To compare NFIP options, use FloodSmart.gov or call the NFIP at 800-427-4661. TDCI also points consumers to tn.gov/insurance. A licensed local agent can quote an NFIP policy, a private flood policy, or both, and can tell you whether contents coverage is included or sold separately.

FAQ

Does a standard homeowners policy in Tennessee cover flooding?

No. TDCI and TEMA both state that a traditional homeowners or renters policy does not cover flood damage to a structure or contents. A separate flood policy is needed.

How long before NFIP coverage takes effect?

NFIP policies usually have a 30-day waiting period. Ask a licensed agent about exceptions, including coverage required at a loan closing, and about any wait on a private flood policy.

Do I need flood insurance if I am not in a high-risk zone?

It is not always required, but claims often come from outside high-risk areas. Some lenders still require a policy in moderate- or low-risk zones. Look up the property on FEMA's map service and talk with a licensed agent.

Can a renter buy flood insurance?

Yes. In NFIP-participating communities, renters can buy a policy to cover their belongings.

Next step

Look up the property on FEMA's Flood Map Service Center, then ask a licensed local agent to quote NFIP or private flood coverage, including the waiting period, building and contents limits, and whether your community participates in the NFIP.

Sources: TDCI and TEMA flood insurance consumer alert, May 24, 2024; Tennessee Emergency Management Agency, Getting Flood Insurance; National Flood Insurance Program, FloodSmart; FEMA Flood Map Service Center.

Tennessee's Department of Commerce and Insurance (TDCI) reviews complaints against insurers, agents, public adjusters, and brokers for policies written in the state. Formal complaints are submitted online through Consumer Insurance Services. Specialists can answer general questions by telephone at 615-741-2218, or at 1-800-342-4029 if you are outside Davidson County.

What can Consumer Insurance Services do?

Consumer Insurance Services is the unit inside TDCI that handles most insurance problems involving homeowners, automobile, health, life, dental, disability, and annuity coverage, among others. The Department's complaint-instructions page says the staff can present your complaint to the company, obtain information or explanations on your behalf, review what the company provides for compliance with Tennessee statutes, regulations, and the policy contract, explain policy provisions, and suggest steps that may help resolve the problem. In a claim dispute, the Division describes its role as a third-party mediator. The specialist assigned to a case looks at whether the company or agent has conducted its affairs in accordance with accepted business principles and Tennessee insurance law.

There are clear limits. TDCI cannot act as your lawyer or give legal advice, recommend a company, agent, or policy, identify which company insures another person, resolve a pure dispute of fact when the only evidence is your word against the company's, make medical judgments, decide the value of damaged property, or conclude who was at fault. It cannot negotiate third-party settlements, and it cannot force a company to satisfy you if no regulation has been broken.

The Department also does not have jurisdiction over several kinds of plans. Those include workers' compensation injury claims, self-insured employee health programs, union health and welfare plans, State of Tennessee employees' health insurance, federal employees' health and life insurance, unlicensed entities such as discount drug cards, military insurance, policies purchased in another state, TennCare, and Medicare Parts A, B, C, and D. If your policy was purchased in another state, contact the insurance department in that state. If your issue is TennCare, Medicare, or a self-insured employer plan, use the agency the instructions page names for that program.

Network-adequacy reviews under Tenn. Code Ann. § 56-7-2356 use a different form than the general online insurance complaint. Use the Network Adequacy and Sufficiency Review Request Form on the File an Insurance Complaint page when that is the issue.

How do you prepare and file?

Before you file, contact the insurance company or agent and put the problem in front of them. Document telephone calls with the name of the person you spoke with, the date and time, and a short summary of the conversation. Keep copies of letters, emails, estimates, photos, medical bills, and the declarations page. If you are not satisfied with the company's response, contact Consumer Insurance Services.

Formal complaints must be submitted online, according to the complaint-instructions page. The File a Complaint page is the official starting point. You will be asked for policy and claim numbers, dates, a clear statement of the problem, and the outcome you are seeking. Attach the documents that support your account. After you submit the complaint, watch for any confirmation or follow-up request from the Department, and reply by the date it gives you.

A few practical points help the review move:

• Confirm the policy was written in Tennessee. A policy bought in another state is outside TDCI's jurisdiction for this process.
• Stick to facts, dates, and document names. A short timeline is easier to review than a long narrative with no exhibits.
• Do not withhold correspondence that is unfavorable to you. The specialist will ask the company for its file anyway.
• If you have already hired a lawyer or a public adjuster, say so, and include their contact information.

Filing a complaint does not stop policy deadlines, suit-limitation periods, or a foreclosure or collection timeline on its own. If a deadline is close, talk with a licensed local agent and, if needed, a lawyer about preserving your rights while the Department reviews the file.

The Department's mailing address appears on its website if you need a city and department name for your records. Use the online form for the formal complaint itself, and use the published phone numbers for general questions. You do not need a street address to start the process.

FAQ

Do I have to complain to the company before I contact TDCI?

The Department asks you to contact the company or agent first and to keep a record of those calls and letters. If that does not resolve the issue, file a formal complaint online.

Can I file a complaint by phone?

Insurance specialists can answer general questions at 615-741-2218 or 1-800-342-4029. Formal complaints must be submitted online.

What if my policy was purchased in another state?

TDCI does not have jurisdiction over policies purchased in another state. Contact the insurance department in the state where the policy was purchased.

Will TDCI get me a settlement or tell the company who was at fault?

No. The Department can review the file for compliance with Tennessee law and the policy, and it can mediate, but it cannot decide fault, set the value of damaged property, or force a payment when no regulation has been broken.

Next step

Call Consumer Insurance Services with general questions if you need help framing the issue, then file the formal complaint online and talk with a licensed local agent about coverage, deadlines, and next steps on the claim itself.

Sources: Tennessee Department of Commerce and Insurance, File a Complaint; Tennessee Department of Commerce and Insurance, Insurance Complaint Instructions.

Tennessee does not operate a FAIR Plan or other state residual property market for homes that admitted insurers will not write. When those companies decline a homeowners risk, surplus lines placement for standard residential coverage requires three documented declinations from the admitted market.

That rule comes from the Tennessee Department of Commerce and Insurance (TDCI) surplus lines declination-requirement page, and it is the path of last resort for many property owners who cannot find a policy in the admitted market.

What the absence of a FAIR Plan means

Some states run a Fair Access to Insurance Requirements plan that sells basic property coverage when the regular market will not. Tennessee does not. If several standard companies decline to insure a house, a mobile home, or a dwelling policy, there is no state-run residual plan to fall back on. The alternative TDCI describes is a surplus lines policy, placed by a licensed surplus lines agent after the required number of declinations from admitted insurers.

Surplus lines companies are not the same as the admitted companies that file rates and forms in the ordinary market. They can insure risks the admitted market has turned down, but the placement has to follow Tennessee's declination rules, and the consumer protections are not identical to those on an admitted policy. Ask the agent, in writing, whether the company is a surplus lines insurer, whether a guaranty-fund or similar backstop would apply if the company failed, and what the policy deductibles and exclusions are.

TDCI's declination table is specific. For residential homeowners forms HO-1 through HO-8, and for dwelling and mobile-home coverage in that same personal-lines grouping, the Department requires three declinations. Personal flood coverage requires one declination. Those counts are not a casual shopping target. They are the documented refusals the surplus lines agent needs before the risk can be placed.

A declination is a refusal to write the coverage, not a high quote you chose not to buy. Keep the written or emailed refusals, the company names, the dates, and a short note of the reason given, if any. If an agent makes the market search for you, ask for a copy of the declination record that will be used for the surplus lines file. If you cannot get three admitted-market refusals for a standard homeowners form, the surplus lines path for that coverage is not open yet. Keep trying other admitted companies, or ask whether a change in deductible, coverage amount, or repairs would make the risk acceptable in the standard market.

What to compare before you buy a last-resort policy

A surplus lines homeowners or dwelling policy can be the difference between having property coverage and going bare, but it is still a contract you have to read. Before you bind coverage, ask the licensed agent to put the following in writing:

• The insurer's name and surplus lines status, and the name of the Tennessee surplus lines agent making the placement.
• The coverage form (for example, an HO-3 equivalent or a dwelling fire form) and whether liability, theft, and ordinance-or-law coverage are included or excluded.
• The deductible, including any percentage deductible for wind, hail, or other perils.
• The actual cash value or replacement-cost basis for the dwelling and for personal property.
• The number and source of the required declinations.
• The premium, taxes, and fees, and how long the quote is valid.

Flood remains a separate question. A homeowners policy, including a surplus lines homeowners policy, typically still excludes flood. Personal flood may be available in the surplus lines market after one declination, and NFIP coverage may be available if the community participates in the National Flood Insurance Program. Do not assume a hard-to-place homeowners policy has solved a flood or earthquake exposure.

If you were nonrenewed or cancelled, ask the admitted company for the reason and the date the coverage ends. Shop before that date so you are not uninsured between policies. If you believe a cancellation or claim denial broke Tennessee insurance law, you can file a complaint with TDCI Consumer Insurance Services. A complaint does not create a residual market, but it can address a practice that is not allowed.

For many owners, prevention and documentation help the next underwriter say yes: a current roof age, a photo of repairs, a claims-free letter, and a decision to raise a deductible or lower a coverage amount. Those steps do not guarantee an admitted policy, but they are often what a standard company asks to see after a prior decline.

FAQ

Does Tennessee have a FAIR Plan?

No. TDCI does not operate a FAIR Plan or other state residual property market. The documented last-resort path for many personal property risks is surplus lines coverage after the required declinations.

How many declinations are required for a surplus lines homeowners policy?

TDCI requires three declinations for residential homeowners forms HO-1 through HO-8, and for dwelling and mobile-home coverage in that grouping. Personal flood requires one declination.

Is a surplus lines policy the same as a standard admitted policy?

No. It is coverage placed outside the ordinary admitted market after the required search. Ask the agent about the form, deductibles, exclusions, and any difference in consumer protections.

Does a surplus lines homeowners policy cover flood?

Do not assume that it does. Flood is typically a separate policy. Personal flood may be placed in surplus lines after one declination, and NFIP coverage may be available in participating communities.

Next step

If admitted insurers have declined your home, ask a licensed local surplus lines agent to document the required declinations and to compare a surplus lines quote, in writing, against any remaining admitted-market option, including deductibles, exclusions, and flood coverage sold separately.

Sources: Tennessee Department of Commerce and Insurance, Surplus Lines Declination Requirement; Tennessee Department of Commerce and Insurance, File a Complaint.

A Tennessee auto liability policy must include uninsured motorist coverage equal to the policy's bodily injury limits, unless a named insured rejects the coverage in writing or selects lower limits allowed by law. Umbrella and excess policies do not have to include this coverage.

The rule is in Tenn. Code Ann. § 56-7-1201, and it is easy to miss on a declarations page.

What does uninsured motorist coverage pay?

Uninsured motorist (UM) coverage is for people insured under the policy who are legally entitled to recover compensatory damages from the owner or operator of an uninsured motor vehicle because of bodily injury, sickness, disease, or death. In plain terms, it is the coverage that can step in when the other driver has no liability insurance, or not enough of it, and you have a valid claim.

The default is not a bare minimum. Section 56-7-1201 says the UM limits shall be equal to the bodily injury liability limits stated in the policy. If you buy $100,000/$300,000 in bodily injury liability, the statute's starting point is the same UM amount. A named insured may reject UM coverage completely in writing, or select lower UM limits, but those lower limits may not be less than the minimum coverage limits in Tenn. Code Ann. § 55-12-107. A signed rejection or selection of lower limits is binding on every insured the policy covers, and it is treated as part of the policy even if it is not physically attached.

That written choice carries forward. Unless the named insured later requests the coverage in writing, the rejected coverage need not be added back when the same insurer continues, renews, reinstates, or replaces the policy, or transfers vehicles on it. A new application in connection with a renewal, reinstatement, or replacement is treated like a new policy, and the offer and rejection rules apply again.

Excess or umbrella policies are different. The statute says no uninsured or underinsured motorist coverage need be provided in Tennessee by an excess or umbrella policy. If you buy an umbrella, ask a licensed agent in writing whether any UM applies at that layer, and do not assume that it does.

Insurers also have to offer uninsured motorist property damage coverage to every insured who purchases UM bodily injury coverage, subject to provisions approved by the commissioner. That property-damage coverage applies to losses in excess of a $200 deductible. The $200 deductible does not apply if the vehicle is insured by the same company for both collision and UM property damage, and the other driver has been positively identified and is solely at fault. The company is not required to offer property-damage UM limits higher than the property-damage liability limits you bought. After the coverage has been offered once and rejected in writing, it need not be offered again on a continuation or renewal with the same insurer, unless you request it in writing or a new application is submitted.

How do unknown-driver claims and multiple policies work?

If the owner or operator who caused the injury or damage is unknown, you have no right to recover under the UM provision unless three conditions are met. First, there was actual physical contact between that vehicle and you or your property, or the existence of the unknown motorist is established by clear and convincing evidence other than evidence from occupants of the insured vehicle. Second, you or someone on your behalf reported the accident to the appropriate law enforcement agency within a reasonable time. Third, you were not negligent in failing to identify the other vehicle and its owner or operator at the time of the accident. If a hit-and-run or phantom-vehicle claim matters to you, talk with a licensed agent and, after a crash, make the police report promptly.

The statute also limits how UM from more than one policy can apply. If you are injured while not occupying a motor vehicle, only the UM on the vehicle under which you are an insured with the highest UM limits applies as primary coverage. If you are injured while occupying a motor vehicle you own, only the UM on that vehicle applies, and the limits are not increased because you have several cars or several policies. If you are occupying a vehicle you do not own, the UM on that vehicle is primary, and other policies may apply only as excess in the order the statute sets, never for more than the highest applicable UM limit. These stacking rules are technical. After a serious injury, a lawyer or a licensed agent can walk through which policy applies.

Two other protections are easy to overlook. An insurer may not raise your auto rate or cancel the coverage solely because a UM claim was paid. And if the other motorist fails to file the financial-responsibility forms required by the Department of Safety within 90 days of the accident, that failure creates a rebuttable presumption that the motorist was uninsured.

FAQ

Is uninsured motorist coverage required on a Tennessee auto policy?

The policy must include it at the same bodily injury limits unless a named insured rejects it in writing or selects lower limits, which may not be less than the minimum in § 55-12-107.

Does an umbrella policy have to include UM coverage?

No. Tenn. Code Ann. § 56-7-1201(a)(3) says no uninsured or underinsured motorist coverage need be provided by an excess or umbrella policy in this state.

Can I add property-damage UM coverage?

If you purchase UM bodily injury coverage, the insurer must give you an opportunity to include UM property damage coverage, generally with a $200 deductible, subject to the exceptions and limits in the statute.

What if the other driver is never identified?

UM may still apply if the physical-contact or clear-and-convincing-evidence test is met, the accident is reported to law enforcement within a reasonable time, and you were not negligent in failing to identify the other vehicle.

Next step

Ask a licensed local agent to show you, in writing, whether your Tennessee auto policy carries uninsured motorist coverage equal to your bodily injury limits, whether a named insured has rejected or reduced it, and whether UM property damage coverage was offered and accepted.

Sources: Tenn. Code Ann. § 56-7-1201; Tenn. Code Ann. § 55-12-102.