If you’re a Tennessee parent with a teenage driver, navigating car insurance can feel overwhelming. You want your teen to be protected, but understanding when to file a claim versus when to pay out-of-pocket can save you money and prevent unnecessary premium increases.
In this guide, we’ll break down Tennessee-specific factors that influence auto insurance claims, plus smart strategies to manage costs while ensuring your teen driver is fully covered.
Auto insurance is designed to protect you financially in the event of an accident. But that doesn’t mean every incident should result in a claim. Filing unnecessary claims can increase your premiums and affect your eligibility for policy discounts.
✔ Cost of Repairs: If the repair cost is less than your deductible, it’s almost always better to pay out-of-pocket. (Note: Deductibles only apply if you're getting your own car repaired under collision or comprehensive coverage. If your teen is at fault and damages someone else’s vehicle, liability coverage applies, and there is no deductible.)
✔ Who’s at Fault: If your teen was at fault, filing a claim could lead to higher rates at renewal.
✔ Claim Frequency: Too many claims in a short period can label you as high-risk, resulting in policy surcharges or even non-renewal.
✔ State-Specific Rules: Tennessee is an at-fault state, meaning the driver responsible for an accident is liable for damages. If another driver was at fault, their insurance should cover your losses.
Now, let’s break down when to file a claim versus when to pay out-of-pocket using real-life scenarios.
Your teenage son backs into a mailbox in the school parking lot. The bumper is dented, and the estimated repair cost is $400. Your deductible is $500.
Since the damage is less than your deductible, insurance won’t cover the repair, and filing a claim could still lead to increased premiums.
Your daughter fails to yield at a stop sign and causes a three-car accident. Damages exceed $10,000, and there are minor injuries.
Since the cost is substantial, insurance will help cover medical expenses, vehicle repairs, and liability costs. In this case, since your liability coverage pays for damage to the other vehicles, you will not have to pay a deductible.
In some cases, avoiding a claim can backfire. Here’s why:
⚠ Hidden Damage: A small dent today could reveal frame damage later, increasing repair costs.
⚠ Legal Liabilities: If another party is involved, not having an official insurance record could lead to legal trouble.
⚠ Future Claim Denials: If you attempt to claim later, insurers may question why the damage wasn’t reported immediately.
Understanding Tennessee’s auto insurance laws can help you make informed decisions. Here’s what parents need to know:
Tennessee law requires all drivers, including teens, to carry at least:
$25,000 bodily injury per person
$50,000 bodily injury per accident
$25,000 property damage liability
However, this may not be enough. If your teen is at fault in a major accident, damages could easily exceed these limits, leaving you responsible for the difference. That’s why many parents opt for higher liability limits or an umbrella policy for added protection.
Learner’s Permit (Age 15): Requires a licensed driver age 21+ in the car at all times.
Intermediate License (Age 16-17): Restricted driving hours; no more than one non-family passenger.
Full License (Age 18+): No restrictions, but higher insurance rates may still apply due to age.
Adding a teen driver to your policy in Tennessee can increase premiums by 50-100%. Here’s why:
🚗 Higher Risk: Insurance companies consider teens high-risk drivers due to inexperience.
🚗 More Accidents: Statistically, drivers aged 16-19 are 3x more likely to be involved in a crash.
🚗 Liability Exposure: If your teen causes a severe accident, your assets could be at risk.
✔ Good Student Discount – Many insurers offer discounts for teens with a B average (3.0 GPA) or higher.
✔ Defensive Driving Course – Completing an approved driver safety course can reduce premiums.
✔ Safe Car Choice – Insuring a used sedan instead of a sports car can lower costs.
✔ Usage-Based Discounts – Consider a telematics program that tracks safe driving habits for potential discounts.
One way to manage teen-related premium increases is to raise your deductible. A higher deductible means lower monthly payments, but it also means you pay more out-of-pocket before insurance kicks in.
✅ Best for parents who can comfortably afford a $1,000+ deductible in case of an accident.
❌ Risky if you’re unable to cover large out-of-pocket expenses unexpectedly.
At Hutsenpiller Insurance, we specialize in helping Tennessee parents find the best auto insurance solutions for teen drivers. Our team can:
✔ Compare multiple insurance carriers to find the lowest rates.
✔ Recommend discounts specifically for Tennessee families.
✔ Help you build a policy with the right balance of affordability and coverage.
👉 Get a Free Quote Today!
Don’t wait until your teen’s first accident to worry about coverage. Protect your family today! Call us at 615-773-2886 or click below to get started.