As of 1977, the Volunteer State implemented the Financial Responsibility Law and similar to other states, began requiring motorists behind the wheel of a vehicle to have the ability to compensate for injuries and property damage that they may cause while operating an automobile. The financial responsibility law was designed by state legislatures to ensure that individuals who are struck by another motorist while in an auto or as pedestrian are compensated for their losses. By mandating that operators keep coverage in place, the insurer will pay for damages up to the limits of the policy.
Residents can comply with these requirements in a number of ways, including a cash deposit with the department of safety, but due to the large amount which must be posted, the majority of motorists opt to purchase a Tennessee car insurance policy from a company licensed to issue coverage in the state. Policies must consist of minimum liability limits of $25,000 for bodily injury or death to one person, $50,000 for bodily injuries or death to two or more people and $15,000 for property damage per accident. If a Tennessean wishes, higher limits may be purchased for an additional premium and may be worthwhile.
In addition to the state requiring that all motorists be financially responsible for any traffic accident that they may cause, motorists must also carry proof of financial responsibility at all times while operating an automobile. If an individual is involved in a collision, a law enforcement officer will more than likely ask for proof of auto insurance no matter who may have caused the accident. If a person is not insured then they should not be on the road and can suffer harsh consequences in the event that they are caught. If a driver is unable to provide the documentation requested by the officer it may result in fines, having driving privileges suspended and even having a STOP placed on a vehicle, which disallows a vehicle from being registered.
Not having the ability to provide proof of car insurance is viewed by the state as a Class C misdemeanor and may result in a fine of up to $100. A conviction for such an offense may lead to the suspension of driving privileges and a STOP will be placed on a vehicle causing registration to be invalid. The only way to have these repercussions reversed is to provide proof of valid financial responsibility, pay any fines due as well as reinstatement fees. Given the fact that the cost of automobile coverage in TN is relatively inexpensive compared to the rest of the nation, it may have been easier to simply maintained an automobile policy. The Tennessee Department of Safety gives detailed instructions to those who have received a STOP and how to have it removed.
Source: http://www.onlineautoinsurance.com/tennessee/
