In 1977, the Volunteer State became one of the many states in the nation that follow the Financial Responsibility Law which mandates that any person operating a vehicle must have compensation available in the event that they are found liable for causing an accident which results in bodily injury or property damage to a third party. The financial responsibility law is designed to ensure that motorists have a way of recovering losses for injuries and damages that they sustain as a result of a traffic collision if struck by another driver.
Operators can comply with these laws in a couple ways; an individual may obtain a certificate from the Department of Safety dictating that a cash deposit or bond has been posted. Due to the amount that needs to be posted with the Department of Safety, most motorists choose to purchase a policy from a Tennessee auto insurance company licensed to issue coverage in the state. If choosing to buy a car insurance policy the limits purchased must meet the minimum required by law; the minimum liability limits are $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. Individuals can choose to purchase higher limits for an additional premium.
Proof of financial responsibility must be carried at all times while operating an automobile and will be asked for by a law enforcement officer in the event of an accident; evidence of coverage will be requested by the officer regardless of who seems to be at fault. Failure to furnish such proof can when requested can result in fines, suspension of driving privileges and/or having a STOP placed on a vehicle. Once a STOP has been placed on a vehicle it will prevent a vehicle from being registered until it has been removed.
A conviction for a failure to provide proof of financial responsibility is considered to be a Class C misdemeanor which is punishable by a fine up to the amount of $100. Once convicted, the state will be notified of said conviction which will result in the suspension of the convicted individual’s driving privileges and the STOP will be placed on the offender’s automobile. In order to have driving privileges reinstated, the individual would have to provide proof of valid financial responsibility, payment of any applicable fines and reinstatement fees. Once these requirements have been met, the STOP may be removed and the vehicle can be registered. For more information on removing a STOP from a vehicle following a conviction, one can visit the Tennessee Department of Safety for more information and where to send necessary documentation.
