Tennessee Motor Vehicle Accident Laws & Rules

Insurance System & Requirements

System type: Tennessee follows a fault-based system for car accidents. This means the at-fault driver is financially responsible for covering damages resulting from the accident. Compensation may include medical bills, lost wages, vehicle repairs, and other losses. Claimants can seek recovery through the at-fault driver’s insurance policy or by filing a civil lawsuit.

Minimum liability requirements: Under the Tennessee Code Annotated (TCA) 55-12-102(12)(D), Tennessee law mandates the following minimum liability insurance limits:

• $25,000 for bodily injury or death per person per accident
• $50,000 for total bodily injuries or deaths per accident
• $25,000 for property damage per accident

It’s important to understand that these minimum liability limits are designed to protect the victims of an accident you may cause. They cover the costs of injuries or property damage sustained by others but do not provide any coverage for your medical bills, lost income, or vehicle repairs if you are at fault.

Collateral source rule: Tennessee follows the Collateral Source Rule, which prevents defendants from reducing their liability by presenting evidence that another source covered the plaintiff’s medical expenses. This applies if you paid for accident-related expenses out of pocket, through your health insurance, or other means. However, plaintiffs must still prove that the medical services received were necessary and that the charges were reasonable.
 
Uninsured and Underinsured Motorist Coverage (UM/UIM): Tennessee law requires car insurance policies to include Uninsured/Underinsured Motorist (UM/UIM) coverage unless the policyholder specifically opts out in writing. 

This coverage provides critical protection if you are injured in an accident caused by a driver without insurance or insufficient coverage to pay for your damages. The coverage limits match your policy's bodily injury liability limits unless you choose lower limits or opt-out entirely.

Non-compliance penalties: Tennessee enforces strict compliance with its Financial Responsibility Law (T.C.A., 55-12-139) to ensure all drivers are insured or financially prepared to cover damages in an accident.

• Proof of financial responsibility: Drivers must provide proof of financial responsibility during traffic stops or accidents. Acceptable forms include an insurance card, a policy binder, certification of self-insurance, or a $65,000 bond or cash deposit with the Department of Revenue
• If stopped without proof of insurance, you could face no fine if coverage is later proven or up to $300 if not
• First notice: If you’re flagged as non-compliant, you’ll receive a notice in the mail. Failing to verify insurance or provide proof of financial responsibility within 30 days results in a $25 fine
• Final notice: Failure to comply within 30 days of the final notice results in a $100 fine and suspension of your vehicle registration. Repeat offenses may require filing SR-22 insurance, which increases premiums
• Reinstate suspended registration: To reinstate your registration, you must purchase liability auto insurance that meets the state’s minimum requirements and visit driveinsuredtn.com or your local county clerk to pay the coverage failure fees of $25 for the first notice and $100 for the final notice, along with the county reinstatement fee

Medical coverage: TennCare, Tennessee’s Medicaid program, offers medical coverage for qualifying residents. Accident victims who are TennCare recipients may rely on this program to cover medical expenses. Medical providers often bill TennCare directly, ensuring accident victims receive the necessary care.

Rideshare insurance requirements: Tennessee's ridesharing regulations, effective January 1, 2016, govern Transportation Network Companies (TNCs) like Uber and Lyft:

• Insurance requirements for drivers:
  • When logged into the app but not engaged in a ride: Minimum coverage of $50,000/$100,000/$25,000
  • During the ride: Minimum coverage of $1,000,000
• Consumer protections:
  • If the driver does not carry coverage, then the company assumes responsibility by providing coverage and defending the claim
  • Rideshare companies must ensure compliance with insurance requirements and maintain trip records for two years

Fault & Negligence Laws

Modified comparative negligence

Tennessee uses a modified comparative negligence rule, meaning a person injured in a car accident can recover damages if their share of fault is less than 50%. However, any compensation awarded is reduced by the plaintiff’s percentage of fault. For example, if a driver is 20% at fault and awarded $10,000, they would receive $8,000. If their fault equals or exceeds 50%, they cannot recover any damages.

Multi-vehicle collisions

In multi-vehicle accidents, Tennessee allocates fault proportionally among all involved parties. Each party is responsible for damages based on their share of fault, as determined by the evidence.

Passenger rights

Under Tennessee’s fault-based system, passengers injured in car accidents can seek compensation from the at-fault driver. This could be the driver of the vehicle they were in or a third-party driver involved in the crash. Passengers can pursue damages for injuries and other losses, regardless of which party caused the accident.

Statute of Limitations

Under Tenn. Code Ann. § 28-3-104, individuals have one year from the date the injury occurred to file a personal injury lawsuit. The statute extends to two years if the at-fault driver is criminally charged and prosecuted within one year.

The discovery rule applies in cases where the injury or its cause isn’t immediately apparent. This rule allows the statute of limitations to start when the plaintiff knows or reasonably should know they’ve suffered an injury due to someone else’s conduct.

There is no specified statute of limitations for wrongful death claims; however, based on precedent, the statute of limitations is one year from the date of the injury that led to the death.

Claims against government entities: If you need to file a claim against a local government in Tennessee, you have 12 months, whether it involves personal injury or property damage. However, the discovery rule allows additional time if the harm or its cause wasn’t immediately apparent, ensuring you have a fair opportunity to pursue your claim.

Procedures for MVAs & Police Involvement

When to report an accident

In Tennessee, you are required to report a car accident immediately if: 

• Injury or death: The crash causes injury or death
• Property damage: If property damage exceeds $50 or $400 to state or local government property

If the accident occurs within a municipality, report it to the local police, the county sheriff's office if outside city limits, or the Tennessee Highway Patrol (THP) for state highways. 

For accidents involving unattended vehicles, you should notify the vehicle owner directly and leave your contact information and insurance details in a visible location.

Furthermore, drivers are required to file an Owner/Driver Accident Report with the Tennessee Department of Safety and Homeland Security along with local police or the county sheriff's office  if:

• The accident caused injury, death, or property damage exceeding $1,500
• State or local government property damage exceeds $400

This report must be submitted within 20 days of the accident, regardless of who was at fault. Failure to comply may result in suspending your driver’s license and vehicle registration.

Filing a report

If you're required to file an Owner/Driver Accident Report in Tennessee, you must submit it within 20 days of the accident: 

• Notify law enforcement if your accident meets any of the above criteria
• Online submission: Visit the Tennessee e-Services portal and select "Submit an Owner Operator Report" under the Driver Services section. This method allows for a convenient and faster submission process
• By mail: Download and print the Owner/Driver Accident Report form. Once completed, mail the form to:

Tennessee Department of Safety and Homeland Security
P.O. Box 945
Nashville, TN 37202

How to access accident reports

You can request a crash report for documentation or insurance purposes through these methods:

Online: You can purchase a crash report for $10 on the Tennessee Department of Safety & Homeland Security website. You will be directed to a form to confirm your involvement in the accident. 

In-person: If the Tennessee Highway Patrol (THP) investigated the crash, you can request the report in person at a local THP District Office for $4.00. The report will be made available approximately seven days after the crash. If another agency investigated the crash, you can contact the specific law enforcement agency to obtain the report.

By mail: Submit a completed crash report request, along with a check or money order for $4.00 to: 

Tennessee Department of Safety & Homeland Security
Financial Responsibility Division
P.O. Box 945
Nashville, TN 37202-0945

The report will usually be available within two to three weeks after the mailing date.

Types of Compensation Available & Limits

Economic damages: Economic damages cover objectively verifiable financial losses from an accident. These may include medical expenses, rehabilitation costs, lost wages, loss of earning capacity, and property repair or replacement. Burial costs in wrongful death cases and other monetary losses are also included.

• Caps: The state of Tennessee does not place a cap on economic damages, as they are based on actual, documented expenses

Non-economic damages: Non-economic damages compensate for intangible losses such as physical and emotional pain, mental anguish, disfigurement, loss of companionship, and reduced enjoyment of life.

• Caps: Tennessee law limits non-economic damages to $750,000 per injured plaintiff, but this cap increases to $1,000,000 for catastrophic injuries, such as paralysis, severe burns, or wrongful death of a parent with minor children. However, exceptions, such as intentional harm or impaired defendants, may remove these caps

Punitive damages: Punitive damages punish the defendant and deter similar misconduct. They are awarded when the defendant acted maliciously, fraudulently, or recklessly. 

• Caps: Punitive damages are capped at over $500,000 or two times the total compensatory damages, but exceptions apply for intentional harm, tampering with evidence, or actions under the influence. Courts consider the defendant’s financial condition, the severity of the misconduct, and its impact on the plaintiff when determining the amount

Ad damnum clause: In Tennessee, the ad damnum clause states that a court cannot award damages beyond the amount specifically requested in the plaintiff's complaint. If the court does award an amount exceeding what was pleaded, the judgment is considered void for the excess portion. This ensures that the defendant is not liable for more than the plaintiff initially sought in their lawsuit.

Medical Payments & Health Coverage

Health insurance: Your health insurance can cover medical expenses related to your injuries. However, you may still be responsible for co-pays, deductibles, or treatments not covered by your plan.

At-fault party’s insurance: In Tennessee, the at-fault driver’s liability insurance covers your medical bills. However, this process often requires proving fault and negotiating a settlement, which may delay payment. The at-fault driver’s insurance may only cover expenses up to their policy limits, which could be insufficient for severe injuries.

MedPay coverage: Medical Payments (MedPay) is an optional add-on to your auto insurance policy. It covers your medical expenses regardless of who was at fault in the accident. MedPay can be used to pay for deductibles, co-pays, and other out-of-pocket expenses not covered by health insurance, but it typically has a coverage limit.

TennCare: If you qualify for TennCare, Tennessee’s Medicaid program, it can cover medical costs for accident-related injuries. Providers may be required to submit medical bills directly to TennCare.

UM/UIM coverage: Uninsured/Underinsured Motorist (UM/UIM) coverage occurs if the at-fault driver has no insurance or insufficient coverage. This coverage can help pay for medical bills, lost wages, and other damages up to your policy limits.

Medical liens: A medical lien is a legal claim placed directly on a settlement or judgment by a healthcare provider, government agency, or insurance company. It ensures they are reimbursed for the costs of medical services provided to you.

Subrogation: Subrogation is the legal right of an insurance company to seek reimbursement for medical expenses or benefits it has paid on your behalf when another party is responsible for your injury. For example, if your health insurer covers your treatment after a car accident, it can pursue repayment from the at-fault driver’s insurance or your settlement.

Unique Local Considerations

Low visibility and inclement weather: Drivers must adjust their behavior during reduced visibility. This includes slowing down, increasing following distances, or stopping if conditions warrant. For example, courts have ruled that drivers must take additional precautions, such as stopping, looking, and listening for hazards. Failing to do so is considered a breach of the duty of care, which can result in liability for any resulting accidents or injuries.

Flash flooding and river flooding: Tennessee's rivers and heavy rainfall make certain areas prone to flash flooding, especially during spring and summer storms. Motorists should avoid flooded roads, as water can obscure hazards and potentially wash vehicles away.

Tornadoes: Tennessee is a region susceptible to tornadoes, particularly in spring and fall. Tornadoes can cause downed trees, debris, and road closures. Drivers should monitor weather alerts and seek shelter during severe weather.

Freezing fog, snow, and ice: While snowfall in Tennessee is typically light, freezing fog and icy roads can create hazardous conditions, particularly in higher elevations like the Smoky Mountains. Motorists should equip vehicles with winter tires and drive cautiously on slick roads.

Wildlife hazards: Animal collisions, especially with deer, are a significant concern in Tennessee, with the most dangerous months being November, October, and December. Drivers should be alert for wildlife, particularly in rural areas or near wooded regions, and exercise extra caution during dawn and dusk when animals are most active.

Tennessee residents can use the ReadyTN application for real-time information on weather alerts, road conditions, and government resources. This tool helps you make informed decisions and navigate adverse conditions safely.

Local Resources & Contacts

Tennessee Department of Safety and Homeland Security (TDOS): https://www.tn.gov/safety.html

Tennessee Highway Patrol (THP): https://www.tn.gov/safety/tennessee-highway-patrol.html

Tennessee Highway Safety Office (THSO): https://tntrafficsafety.org/home

Tennessee Department of Commerce and Insurance (TDCI): https://www.tn.gov/commerce.html

State of Tennessee Accident Call Center: 855-253-0629