Auto insurance requirements vary from state to state. Those who have recently moved to Tennessee from another state should not assume that the insurance on their car meets the state's minimum requirements.

Tennessee law only requires that drivers keep a liability policy on their vehicles. This means that, at minimum, Tennessee drivers must maintain a policy that covers the medical and repair damages for the other driver in any accident in which the insured is held liable. The minimum policy must cover medical damages up to $25,000 for the driver of the other car and $50,000 for all other individuals in the car. The minimum policy must cover up $10,000 in repair costs to the other vehicle. Of course, medical and repair costs can easily exceed these amounts. In these cases, the driver of the car at fault is required to pay all costs above and beyond what the insurance policy will pay for. This is why it is a good idea to take out more than the minimum.

Though not required, it might also be a good idea to take out other forms of insurance as well. Collision insurance will help cover the costs to the insured's car in the event of an accident that this their fault and therefore not covered by the other driver's liability insurance. Collision insurance covers damages up to the value of the car, and if the repair bill will exceed that amount the insured receives a check for the full Kelly Blue Book value of their vehicle. Collision insurance may actually be required for vehicles under liens or are not fully paid off.

Another policy that is wise to take out if the budget allows is uninsured insurance. Uninsured insurance covers repair and medical costs from accidents in which the other driver is at fault, but does not have liability coverage. Most uninsured coverage also covers costs from hit and run accidents. Uninsured insurance is a particularly wise investment in Tennessee, especially East Tennessee, because South Carolina does not require liability coverage.

The best place for further information on Tennessee's insurance requirements is the state's website. http://tn.gov/commerce/insurance/consumerRes.shtml