Tennessee Car Insurance Laws


state of TennesseeIn 1977 the state implemented the Financial Responsibility Law which requires motorists to carry documentation which proves that they have compensation in place in the event that they are found responsible for causing a traffic accident which results in the bodily injury or property damage of a third party.

Residents can choose a few options to satisfy this law; these include purchasing an auto insurance policy from a company authorized to do business in Tennessee or posting a cash deposit or bond with the state's Department of Safety. Failure to comply may result in fines, suspension of driving privileges and a STOP being place against a vehicle.

Liability Auto Insurance laws in TN

The majority of motorists choose to abide by the Financial Responsibility Law by purchasing a policy from an insurer; policies must meet the minimum liability limits required by the state. The liability limits required are as follows:
  • $25,000 for bodily injury or death to one person
  • $50,000 for bodily injuries or deaths to two or more people
  • $15,000 for property damage for one accident
Consumers should be aware that these are the minimums and higher limits may be purchased at a higher premium. In addition, the minimum Tennessee car insurance requirements do not cover damage caused to the policyholder's vehicle.

Motorists must carry proof of an insurance policy at all times; a law enforcement officer may ask for evidence of such documentation at a traffic stop or following an accident regardless of who appears to be at fault. Failure to provide proof can result in fines and a STOP being placed against a vehicle.

Being convicted of failing to provide evidence of financial responsibility is considered a Class C misdemeanor punishable by a fine of up to $100; once the state has been notified of such a conviction, the offender's driving privileges will be suspended and a STOP will be placed on the vehicle which prevents renewal of registration until removed.

legal scalesIn order to have driving privileges reinstated, the violator would need to meet all requirements necessary for reinstatement which includes providing proof of a valid policy and paying any applicable fines and reinstatement fees; at this point the removal of STOP can occur and the vehicle can become registered.


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