Car insurance claim rules in Tennessee

The clock on a Tennessee claim

The Department of Commerce and Insurance's unfair claims settlement practices rule, Chapter 0780-01-05 of the Tennessee rules, sets the timing. The 60-day decision rule covers first-party claims, the ones you make under your own policy.

The same rule requires the insurer to warn you at least 30 days before the time limit to sue on your claim runs out. If a deadline passes without word, our page on claims that drag on shows what to send.

When a Tennessee car is a total loss

Tennessee's title law, Tenn. Code §55-3-201, defines a salvage vehicle as a passenger vehicle whose estimated or actual cost of parts and labor to rebuild it to its condition before the crash, and for legal road use, exceeds 75% of its retail value in a current national valuation guide. The definition reaches passenger vehicles 10 model years old or less, including light trucks rated at 9,000 pounds or less.

Rule 0780-01-05-.09 then sets how a total loss is settled. The insurer can offer a comparable replacement car from a licensed dealer, or pay cash for one. Either way:

• Comparable cars come from two or more similar cars in your local market available within the last 90 days, then nearby areas, then dealer quotes, or a qualifying valuation database.
• Taxes and fees: the insurer pays all applicable taxes, license fees and title transfer fees; your only cost is the deductible.
• Deductions for condition, betterment or salvage have to be specific, itemized in dollars and documented in the claim file.

Our guide to total loss claims shows how to check the comparables, and the total loss check runs the 75% test.

Repairs and towing

• A copy of the estimate: if your partial loss is settled on the insurer's written estimate, you get a copy.
• A higher shop estimate: the insurer pays the difference or promptly names at least one shop that will do the work for its estimate.
• No long trips: the insurer can't require you to travel an unreasonable distance for an estimate, an inspection or repairs at a specific shop.
• Towing: unless the insurer named a towing company or you have roadside assistance through it, it pays reasonable towing charges whichever company you used, subject to the policy.

Reporting a Tennessee crash

Tenn. Code §55-10-106 requires the driver to notify the police right away after a crash that injures or kills anyone or causes property damage of an apparent $50 or more: the local police in a city, otherwise the county sheriff or the nearest Highway Patrol office. That threshold covers almost any crash with visible damage.

Under §55-10-107, a driver must also file a written report with the Department of Safety within 20 days when a crash causes an injury, a death, or more than $1,500 of damage to any one person's property, including your own. The statute doesn't excuse the report because police came, so ask the department or the officer whether you still need to file.

Fault, deadlines to sue and complaints

Tennessee is an at-fault state. Since McIntyre v. Balentine (1992), you can recover as long as your negligence is less than the other driver's; at 50% you recover nothing. Your damages drop by your share.

Tenn. Code §28-3-104 gives you only one year to sue for injuries, extended to two years when criminal charges are brought over the conduct that caused them. Property damage claims have three years under §28-3-105. Don't let settlement talks run past the first anniversary of the crash.

1. Ask the insurer in writing for the reason for a denial or a low offer and the policy language it relies on.
2. Call Consumer Insurance Services at 615-741-2218 or 1-800-342-4029.
3. File a complaint online or by mail if the insurer misses the deadlines. Our guide to insurance department complaints shows what to include.

Questions people ask