Kentucky and Tennessee have meaningfully different insurance regulations, minimum requirements, and rating factors. If you’re moving between the states, your policies need to be re-underwritten in the new state — you can’t just keep the old policy. Here are the key differences.
Written by Blake Boswell, licensed Kentucky & Tennessee property & casualty producer. Updated July 2026.
Auto insurance comparison
| Factor | Kentucky | Tennessee |
|---|---|---|
| Minimum liability | 25/50/25 | 25/50/15 |
| No-fault system | Yes (modified) | No (tort state) |
| PIP required | Yes ($10,000) | No (optional) |
| UM/UIM offset rule | No | Yes (Tenn. Code Ann. § 56-7-1201) |
| Average annual premium | $1,600-$2,100 | $1,400-$1,900 |
Home insurance comparison
| Factor | Kentucky | Tennessee |
|---|---|---|
| Average annual premium | $2,053 | $2,010 |
| Wind/hail deductible practices | Percentage (1-2%) | Percentage (1-2%) |
| Tornado exposure | High | High |
| Erie Insurance availability | Yes (since 2014) | Yes (since 2018) |
The Kentucky-Tennessee UM/UIM offset (border commuters must know)
Tennessee’s UM/UIM statute (Tenn. Code Ann. § 56-7-1201) uses an offset structure — the UM/UIM benefit is reduced by the at-fault party’s liability limits. Kentucky doesn’t use this offset. If you live in Kentucky but commute to Tennessee for work, this matters at claim time. Your policy state stays Kentucky, but if you’re hit by an underinsured Tennessee driver, the math on your recovery changes.
When moving from KY to TN or vice versa
- Notify your current agent as soon as you have a moving date
- Get quotes for the new state (they’ll be different — different rating factors, different rate filings)
- Update your driver’s license within 30 days of establishing residency in the new state
- Re-register your vehicles in the new state
- Cancel the old-state policy after the new-state policy takes effect
Boswell Insurance Agency writes in Kentucky and adjacent Tennessee counties. If you’re moving, call (270) 925-1524 for state-transition guidance and re-quoting.
