Tennessee's 2026 legislative session produced three insurance changes that matter to ordinary households: a new coverage framework for app-based delivery drivers, tougher penalties for driving uninsured, and a written-notice requirement when a title insurance agency represents both sides of a real estate closing and shares the premium.
What does Public Chapter 1011 require of delivery drivers?
Signed in May 2026 and effective Jan. 1, 2027, Public Chapter 1011 sets liability requirements for delivery network companies — the apps that pay drivers to deliver goods in their own cars — and for the drivers themselves. It splits working time into two windows:
- Delivery availability period — logged in, waiting, carrying nothing.
- Delivery service period — from heading out for a pickup through the final drop-off.
During both windows, the driver, the company, or a combination must carry liability limits of at least $50,000 for bodily injury to one person, $100,000 total for everyone hurt in a crash, and $25,000 for property damage. If a driver's coverage lapses or falls short, the company's insurance must respond from the first dollar of the claim.
Why this matters even if you never deliver food
Most personal auto policies exclude delivery for pay. If someone in your household drives for a delivery app — including a teenager on your policy — a claim during a delivery run can be denied under the personal policy, leaving the app's coverage and your assets to sort it out. Tell your agent before the first shift, not after the first accident.
What changed for uninsured drivers?
The second law signed in May 2026 rewrites the penalties for driving without insurance in Tennessee and, in narrow repeat-offender cases, limits what an uninsured driver can recover after a crash. Practical effect for insured households: uninsured and underinsured motorist coverage is doing more work than ever, and it remains one of the cheapest limits to raise on a Tennessee auto policy.
What is the new title insurance disclosure rule?
A 2026 public chapter amending TCA Title 56, Chapter 35 and Title 66 requires a title insurance agency that separately represents both the buyer and the seller in a transaction and agrees to share title premiums, commissions or other fees to give written notice to both parties and obtain a signed written acknowledgment that they received it.
| Change | Effective | Who it touches |
|---|---|---|
| Delivery network company coverage: $50k / $100k / $25k | Jan. 1, 2027 | App delivery drivers and households insuring them |
| Tougher uninsured-driving penalties | 2026 | All Tennessee drivers |
| Title premium-sharing written notice + acknowledgment | 2026 | Home buyers and sellers at closing |
| Corporate Governance Annual Disclosure deadline moves June 1 to July 1 | 2026 | Insurers and insurance groups |
Three things to do before Jan. 1, 2027
- Ask every driver in the house whether they use their car for any app-based delivery, even occasionally.
- Review your uninsured/underinsured motorist limits. Raising them is usually a small premium change for a large gap.
- At your next closing, read the title disclosure. If one agency is handling both sides and sharing the premium, you are entitled to that in writing.
Want a plain-English read of how these apply to your policy? Send us your current declarations page and we will walk through it.
Sources: Insurance Business, June 1, 2026 (Tennessee Public Chapter 1011 and uninsured motorist law); Tennessee General Assembly, 114th General Assembly public chapters with effective dates on or after July 1, 2026 (title insurance premium-sharing notice; Corporate Governance Annual Disclosure filing date).
