Tennessee doesn’t require residents to show proof of financial responsibility when they register their vehicles or renew their registrations; however, having financial responsibility is still a legal requirement.

Ways to Establish Financial Responsibility

When establishing financial responsibility, the state allows vehicle owners to:

• Purchase liability coverage from a carrier licensed to sell auto insurance in Tennessee.

• Post a cash deposit or bond with the Department of Safety (DOS).

NOTE: The state also allows businesses and government agencies with 25 or more vehicles to apply to qualify as self-insurers.

Tennessee Liability Insurance Requirements for Private Passenger Vehicles

If you choose to purchase traditional liability insurance to satisfy the state’s financial responsibility requirements, your policy must meet these minimums:

• $25,000 for one injury or death

• $50,000 for all injuries or deaths

• $15,000 for property damage for one accident

Keep in mind there are plenty of additional types of coverage that might suit your insurance needs better than simple liability insurance. If you’re doing business with a lienholder, for example, purchasing additional insurance such as comprehension or collision coverage might be a requirement until you’ve paid off your auto loan.

Proof of Insurance and Financial Responsibility

You can show proof of insurance when you:

• Show the insurance card, binder, or declaration binder your insurance carrier issues you.

• Show the certificate from the DOS that state you’ve posted a cash deposit or bond in the amount required.

Because the most common circumstances in which you’ll need to show proof of financial responsibility are times when law enforcement pulls you over or you’re involved in an accident, it’s best to keep this proof in your vehicle at all times.

Penalties for Failure to Maintain Financial Responsibility

The DOS outlines the penalties for failure to maintain financial responsibility. Simply put, a conviction of having no proof of insurance when a law enforcement officer stops you or you’re involved in an auto accident is a Class C misdemeanor and results in:

• A fine of no more than $100.

• License suspension.

• A STOP against your vehicle file, which prevents you from renewing your registration.

Getting back on track generally means paying your fine, obtaining and showing proof of financial responsibility, and then reinstating your license. If you need further instructions specific to your situation, please contact the DOS at (866) 903-7357.