Tennessee companies can choose to satisfy the state’s minimum insurance requirements in the following ways:
Maintain auto insurance that meets the state’s minimum coverage limits for property damage liability and bodily injury liability.
Provide a cash deposit as dictated by the state of Tennessee and pass a background check proving there are no unsatisfied judgments against you.
File a surety bond equal to the minimum required cash deposit as proof of financial responsibility.
Auto insurance helps provide financial protection for your company. Your company could be liable for third-party injury and property damage claims in an at-fault accident without proper auto insurance coverage.
Your agent may advise your company to purchase more than Tennessee’s minimum required amount of auto liability insurance coverage, depending on your situation.
If you finance company vehicles, your lender typically requires full coverage auto insurance, which may include the following:
Comprehensive insurance may help cover non-accident-related damages, including fire, vandalism, weather damage or theft.
Collision insurance may help pay for damages to the covered vehicle after colliding with another vehicle or object.
Guaranteed asset protection (GAP) insurance may help pay off your company’s vehicle in full if it’s a total loss after a covered accident or incident.