Teen Driver Insurance in Tennessee: Parent Guide
Tennessee requires 25/50/25 liability coverage and is an at-fault state.
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Tennessee at a Glance
25/50/25
Minimum liability limits, in thousands of dollars (per person / per accident / property)
At-fault
The at-fault driver's insurance pays for the damage they cause
Optional
PIP and uninsured motorist coverage are not required by law
15
Minimum learner's permit age, 50 supervised driving hours
Source: state DMV, insurance department and statute records, verified July 2026
Minimum Coverage Requirements in Tennessee
Under Tennessee's graduated licensing law, 16-year-olds hold an intermediate restricted license with a passenger restriction (one non-family passenger under 20) and an 11 p.m.–6 a.m. curfew for the first six months, then a midnight–6 a.m. curfew until age 17. Tennessee law also mandates that all insurers offer a good student discount to drivers under 25 who maintain a B average or equivalent, though the exact percentage varies by carrier.
Liability Insurance
Uninsured Motorist Coverage
Collision Coverage
Comprehensive Coverage
Full Coverage
What Drivers Pay in Tennessee
$203–$351/mo
Typical monthly rate in Tennessee, adding a driver aged 16–19 to a parent's policy
Rate data: Insurify and ValuePenguin, 2025
What Affects Your Rate
- Good student discount: Tennessee law requires all insurers to offer this discount to drivers under 25 with a B average or better.
- Telematics programs (usage-based insurance): Most major carriers in Tennessee offer smartphone or plug-in telematics that track braking, speed, and mileage.
- Tennessee does not require formal driver's ed, but insurers reward it.
- Vehicle type and value: A teen driving a 10-year-old sedan with liability-only coverage costs far less to insure than a teen driving a new SUV with full coverage. Vehicle safety ratings, repair costs, and theft rates all affect premiums.
- Urban vs. rural location: Teen drivers in Nashville, Memphis, and Chattanooga face higher rates due to traffic density and accident frequency compared to rural counties.
- Add-to-parent vs. separate policy decision: Adding a teen to a parent's multi-car, multi-driver policy with bundled home insurance is almost always cheaper than a standalone teen policy until the teen is 18–19 with a clean record. Parents lose the benefit of multi-policy and tenure discounts if they move the teen to a separate policy.
Cover Your New Driver for Less
Compare Teen Driver Insurance RatesRules for new drivers
Night driving
11pm-6am
Passengers
no more than 1 passenger
Source: IIHS and state DMV records, verified July 2026
Coverage Types
Liability-Only for Older Vehicles
If your teen drives a paid-off vehicle worth less than $3,000–$4,000, carrying only Tennessee's required 25/50/15 liability—or better yet, 100/300/100—avoids paying collision and comprehensive premiums that may exceed the car's value.
Full Coverage for Financed Vehicles
If your teen's vehicle is financed or leased, the lender requires collision and comprehensive coverage. Full coverage for a teen in Tennessee typically adds $250–$450/mo to a parent's policy depending on vehicle value and deductible.
Uninsured Motorist Coverage
Tennessee does not require UM coverage, but approximately 20% of drivers in the state are uninsured. UM coverage protects your teen (and your family) if they're hit by a driver with no insurance or insufficient coverage.
Higher Liability Limits
Tennessee's 25/50/15 minimum is low. If your teen causes a serious accident and injures multiple people, damages can easily exceed $50,000. Many parents increase liability to 100/300/100 or add an umbrella policy to protect family assets.
Telematics and Usage-Based Programs
Telematics programs monitor your teen's driving behavior—speed, braking, cornering, phone use—via smartphone app or plug-in device. Safe driving can earn discounts of 15–25%, and some programs provide real-time feedback to help teens improve.
Good Student and Driver Training Discounts
Tennessee law requires insurers to offer a good student discount to drivers under 25 with a B average or equivalent. Driver training discounts reward completion of a state-approved course. Combined, these can reduce premiums by 20–30%.