Tennessee Car Insurance Guide

As one of the fastest growing states in the nation, Tennessee is putting thousands of new drivers on the road every year. It doesn't matter if you're still learning the ropes or already a skilled driver though, having auto insurance is the law. Even if it wasn't required under state law though, any experienced driver could tell you about the importance of having car insurance. A good policy financially protects you and your vehicle in the case of an accident. Here's a look at some of the specific laws in Tennessee and how it stacks up against other states:

Tennessee Auto Insurance Requirements

In order to legally obtain a driver's license and operate a vehicle in Tennessee, drivers are required to maintain a minimum amount of liability auto insurance. The state's minimum auto insurance requirements are 25/50/10 - which means $25,000 for single person bodily injuries, $50,000 for multiple people, and $10,000 for property damage. These minimums fall in line with states from the rest of the country. Of course, any auto insurance expert would highly recommend that you sustain more than just the state's minimum amount of coverage. It's simply insufficient if you really want the best protection. Collision and comprehensive coverage should also be strongly considered, especially for young drivers.

Insurance Rates in Tennessee

Like any type of insurance, premiums tend to vary greatly from state to state and auto insurance is no exception. Residents of Tennessee should feel fortunate though, as their state has one of the lowest average insurance rates in the country. For an insurance policy with only liability coverage, the average cost is less than $365 a year. That's a very reasonable price in comparison to other states, which is why Tennessee is ranked in the top ten least expensive states for auto insurance. As you could expect, a more inclusive policy will cost you more, but the extra coverage is well worse the price for most drivers.

What Determines Insurance Premiums?

No matter where you live, you want to make sure you're getting the best auto insurance coverage for your money. In order to do that, it helps to understand just how your rates are determined. Here's a look at some of the different aspects used in determining your car insurance premiums:

• In case you haven't figured it out yet, your credit score plays a significant role in the financial aspects of your life. When you apply for auto insurance, you can bet the provider will pull up a copy of your credit report. Generally, higher credit scores lead to lower rates.
• Perhaps the most important factor in determining your auto insurance rates is your past driving record. Just one or two accidents can cause your insurance premiums to sky rocket, which is why being a safe driver really pays off.
• Finally, the size of your policy's deductible is also a vital factor in your rates. Having a large deductible will typically allow you to maintain lower premiums, although you'll have to pay a lot more if you ever need to make a claim.