Do I Need To Have Auto Insurance In Tennessee?

Reader’s Question:

I bet people from other states will be envious. Is it true that we do not need car insurance in Tennessee and we could do away without it?

Alvin

Chattanooga TN

While it is true that auto insurance is not required in Tennessee to get your vehicle registered or to get your license, it does not mean that liability insurance should be done away with.

For one, it is foolish to think that auto insurance is not necessary. Accidents happen and not having auto insurance will expose you to a potentially damaging financial liability.

Another thing is that if you get stopped by traffic enforcement authorities for a traffic infraction, they will ask you for proof of financial responsibility. If you do not have it, you will be hauled into court where you have to obtain the proof before your hearing. If you don’t get a proof of financial responsibility, you will not be able to register your vehicle. It is also considered a misdemeanor not to have proof of financial responsibility, which means you pay a $100 fine and possible suspension of your license.

So to save yourself the stress, the time and the effort, it is best to get adequate auto insurance in Tennessee.

Another reason for getting auto insurance in this state is that it does not really cost too much to get that added convenience and peace of mind. Tennessee belongs to the ten cheapest states in terms of average insurance premiums, with premiums averaging only $666 in 2004. And there are a variety of ways to further save on auto insurance here:

• Shop around for the best price that gives you the best insurance coverage and customer service. No two companies that provide auto insurance in Tennessee has the same price structure, so one is bound to be cheaper than the other.
• Opt to pay for a higher deductible.
• Drive less. This would mean relocating nearer to your place of work or school. If that is too inconvenient, consider car pooling or taking public transportation.
• Ask for discounts. Sometimes you can get 10% off your premiums simply by asking for it.