About $229 a month
Commercial auto
Insureon average for Tennessee customers, updated March 2026
Tennessee · state requirements
Commercial auto insurance in Tennessee
For Tennessee businesses running work vehicles, from one service van to for-hire trucks: what state law requires, which filings apply and what coverage costs.
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Get commercial auto quotes in Tennessee
What similar businesses pay
- Commercial auto
- About $229 a month
- Intrastate authority fees
- $50 plus $8 a vehicle
Published benchmarks, not quotes. Your price depends on underwriting.
Cost
What commercial auto insurance in Tennessee costs
$50 plus $8 a vehicle
Intrastate authority fees
Tennessee Department of Revenue application RV-F1315501, October 2025
Insureon reports that its Tennessee customers pay an average of $229 a month, or about $2,744 a year, for commercial auto (updated March 2026). Most of those customers have fewer than five employees and have been in business five years or less, so the figure leans toward pickups, vans and cars rather than heavy trucks. A for-hire truck that needs a $750,000 Form E filing can expect a much higher premium, while a single light vehicle at state minimum limits may pay less. The state’s own charges are small by comparison: intrastate authority costs a one-time $50 plus $8 a vehicle.
What moves your price
- Number, type, value and gross weight of your vehicles
- Where vehicles are garaged, such as Memphis versus a rural county
- What you do with them: deliveries, contracting, for-hire hauling or passengers
- Your drivers’ records and your company’s claims history
- The liability limits your customers or Tennessee filings require
- Uninsured motorist limits, which default to your liability limits
- Deductibles on collision and comprehensive
Tennessee
What’s different in Tennessee
The property damage floor rose to $25,000
Public Chapter 860 raised Tennessee’s property damage minimum from $15,000 to $25,000 for policies issued or renewed after December 31, 2022. The floor is now 25/50/25, and one crash involving a newer vehicle, a storefront or several injured people can run past it, leaving your business to pay the rest.
Every registered VIN is checked against insurer data
Under the James Lee Atwood Jr. Law, every actively registered VIN must show minimum liability in the insurer’s monthly book-of-business report to the state. The Department of Revenue says a broad-form policy covering a person does not count unless it is tied to specific VINs. A missing vehicle can lead to fines and a suspended registration.
A commercial plate needs a commercial policy
The Tennessee Department of Revenue states that any vehicle with a commercial license plate must be covered under a commercial auto policy. A personal auto policy on a truck with commercial tags does not meet the requirement, even if its limits match 25/50/25.
Uninsured motorist cover comes at your full limits
Tennessee Code 56-7-1201 puts uninsured motorist cover on every auto liability policy, at limits equal to your bodily injury liability. You can reject it or choose lower limits only in writing, and that signed choice binds every driver on the policy and carries into renewals with the same insurer.
Hauling for pay inside Tennessee needs state authority
For-hire carriers and towing and wrecker services need Tennessee intrastate authority, which J. J. Keller notes applies to commercial vehicles of any weight. Your insurer files a Form E with the Department of Revenue, plus a Form H cargo filing for general freight, household goods or mobile homes.
Passenger and hazmat carriers face million-dollar floors
The state’s intrastate minimums climb to $1.5 million for vehicles seating 15 or fewer including the driver and $5 million for 16 or more. Hazardous materials carriers over 10,000 pounds need $1 million, or $5 million for bulk hazardous substances, explosives, poison gas, compressed gas and radioactive material.
Coverage
Coverage Tennessee businesses need
Auto liability
Pays for injuries and property damage your vehicles cause to others. Tennessee requires at least 25/50/25; intrastate for-hire filings require $300,000 to $5 million.
How commercial auto works →Uninsured motorist
Pays your drivers and passengers when an at-fault driver has no insurance. In Tennessee it is included at your liability limits unless you reject it or lower it in writing.
How commercial auto works →Collision and comprehensive
Repairs or replaces your own vehicles after a crash, theft, fire or vandalism. Not state-required, but a lender or lessor may require it.
How commercial auto works →Medical payments
Pays medical bills for people riding in your vehicle regardless of fault. Insureon lists it among common Tennessee add-ons.
How commercial auto works →Hired and non-owned auto
Covers liability when you or an employee drives a personal, rented or leased vehicle for work. It does not pay to repair the vehicle itself.
How commercial auto works →Motor truck cargo
Pays for freight in your care. Tennessee requires a Form H cargo filing for for-hire carriers of general freight, household goods and mobile homes.
Umbrella or excess
Adds limits above your auto policy when contracts ask for more. Tennessee law does not require an umbrella or excess policy to include uninsured motorist cover, so check what yours provides.
How umbrella / excess works →Rules
Tennessee requirements
Every vehicle registered in Tennessee must meet the financial responsibility law, enforced through electronic VIN checks. For-hire carriers and towing services also need intrastate authority, with limits set by weight, cargo and seating.
| Requirement | Applies to | What it means |
|---|---|---|
| Minimum liability | Every vehicle registered and driven in Tennessee | $25,000 per person, $50,000 per accident for injuries and $25,000 for property damage, under Tenn. Code 55-12-102 and Public Chapter 860 (2022). |
| Commercial policy for commercial plates | Vehicles with a Tennessee commercial license plate | Must be covered under a commercial auto policy, per the Department of Revenue’s financial responsibility page. |
| Alternatives to a policy | Owners who choose not to insure | A $65,000 bond or $65,000 cash deposit with the Department of Revenue, per its insurance verification guidance. |
| Electronic insurance verification | Every actively registered VIN | Coverage must appear in the insurer’s monthly book-of-business report to the state; noncompliance brings fines and registration suspension. Tenn. Code 55-12-201 et seq. |
| Uninsured motorist coverage | Auto liability policies on vehicles registered or garaged in Tennessee | Included at bodily injury liability limits unless the named insured rejects or lowers it in writing, under Tenn. Code 56-7-1201. |
| Intrastate authority | For-hire carriers and for-hire or private towing and wrecker services | Application, process agent, insurer-filed Form E and a $50 fee plus $8 a vehicle, per the Department of Revenue. Vehicles already filed under UCR do not need it. |
| Intrastate liability by weight | For-hire property carriers with intrastate authority | $300,000 at 10,000 pounds or less; $750,000 at 10,001 pounds or more for non-hazardous cargo, per application RV-F1315501. |
| Hazardous materials | Intrastate for-hire carriers at 10,001 pounds or more | $1 million for most hazardous materials; $5 million for bulk hazardous substances, explosives, poison gas, compressed gas and radioactive material, per RV-F1315501. |
| Passenger carriers | Intrastate for-hire passenger vehicles | $1.5 million for 15 or fewer seats including the driver; $5 million for 16 or more, per RV-F1315501. |
| Cargo filing | For-hire carriers of general freight, household goods and mobile homes | Insurer files Form H; household goods carriers list $5,000 cargo per vehicle and $10,000 per occurrence, per the Department of Revenue. |
Compare commercial auto options in Tennessee.
One application, quotes from several insurers, reviewed by a licensed agent. Start with your email and finish later if you need to.
Pay less
How to lower the cost
- Tie every vehicle to its VIN on the policy and add new units before they are registered, so the state’s monthly check never shows a gap.
- Decide uninsured motorist limits on purpose: Tennessee lets you lower them in writing, which cuts premium but leaves your drivers less protected.
- Hire drivers with clean records and review them yearly; Insureon lists driving records and claims history among the main price factors.
- Raise collision and comprehensive deductibles on older, paid-off vehicles.
- Match each vehicle’s weight class and use to the right Tennessee filing so you do not buy limits you do not need.
- Compare quotes at renewal; Florin is an independent broker that compares options from several insurers.
Before you start
What underwriters ask for
- USDOT number and any Tennessee intrastate or UCR account
- Vehicle list with VINs, gross vehicle weights, plate types, values and any lienholders
- Garaging address for each vehicle
- Driver list with license numbers, dates of birth and years of experience
- What you carry: passengers, general freight, household goods or hazardous materials
- Loss runs from current and prior insurers
- Your current uninsured motorist selection or rejection form
- Limits and additional insured terms your customers require on certificates
Common questions
Commercial auto insurance in Tennessee: questions
Can I use a personal auto policy on a truck with commercial plates?
No. The Tennessee Department of Revenue says a vehicle with a commercial license plate must be covered under a commercial auto policy.
Does Tennessee require personal injury protection?
No. The state’s required coverage is liability at 25/50/25. Medical payments and other add-ons are optional unless a contract or lender requires them.
Do I need Tennessee intrastate authority if I already file UCR?
Not for the same vehicle. The Department of Revenue’s Motor Carrier Education Guide says a vehicle already filed under the Unified Carrier Registration Agreement does not need to file for intrastate authority.
Does a business hauling only its own goods need intrastate authority?
The Department of Revenue describes intrastate authority as covering for-hire carriers and towing and wrecker services. A business hauling its own goods still needs the 25/50/25 minimum; confirm your status with the Department.
Can I reject uninsured motorist coverage on a fleet policy?
Yes, in writing. Under Tenn. Code 56-7-1201, the signed rejection binds everyone insured under the policy and carries into renewals with the same insurer unless you request the coverage back in writing.
What happens if one vehicle drops off my policy?
The state checks each registered VIN against insurer reports, so that vehicle can be flagged even if the rest of your fleet is insured. Noncompliance can bring fines and a suspended registration.
Is a bond an option instead of insurance?
Yes. The Department of Revenue accepts a $65,000 bond or cash deposit as proof of financial responsibility. That meets the state minimum only, not for-hire filing limits.
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Sources (11)
- Tennessee Department of Revenue: Financial Responsibility Law (updated June 2025)
- Tennessee Department of Revenue: DIFD-1, insurance verification overview
- Tennessee Department of Revenue: DIFIC-1, insurance verification program for insurers
- Tennessee Department of Revenue: 2022 legislative summaries (Public Chapter 860)
- Justia: Tenn. Code 55-12-102, financial responsibility definitions (2025)
- Justia: Tenn. Code 56-7-1201, uninsured motorist coverage (2025)
- Tennessee Department of Revenue: Intrastate Authority (updated September 2026)
- Tennessee Department of Revenue: Application for Intrastate Authority, RV-F1315501 (October 2025)
- Tennessee Department of Revenue: Motor Carrier Education Guide (October 2026)
- J. J. Keller: Tennessee for-hire carrier authority
- Insureon: commercial auto insurance in Tennessee (updated March 2026)
Figures are published third-party estimates, not quotes. Coverage depends on policy terms and underwriting, and rules vary by state. Updated November 2026.