Tennessee drivers are required to carry minimum auto insurance to legally drive in the Volunteer State. Failure to do so can result in fines and even jail time as punishment for driving uninsured in Tennessee. Auto insurance not only meets state requirements, it also provides valuable financial protection for you and your vehicle. Bankrate explains how to comply with state laws and the consequences of failing to do so.
Tennessee Minimum Insurance Requirements
Tennessee drivers are required to carry minimum automobile liability insurance. This insurance must be valid for every vehicle they operate in the state. If you are caught driving without meeting these requirements, you will be fined for driving without insurance and could face more severe penalties depending on your driving record.
Tennessee updated its minimum auto insurance requirements on January 1, 2023. Here are the state’s requirements for liability insurance:
- Bodily injury liability insurance: $25,000 per person
- Bodily injury liability insurance is $50,000 per accident
- Property damage liability is $25,000 per accident (increased effective January 1, 2023)
Tennessee allows for an exception to the insurance requirement, but drivers must show proof of financial responsibility in one of three ways: You must prove to your state’s tax department that you have the financial ability to assume responsibility after an accident in one of the following ways:
- Post a $65,000 bond with the tax office.
- Make a cash deposit of $65,000 with the tax office.
If you drive a vehicle in Tennessee, you must carry either a Proof of Insurance or a Proof of Financial Responsibility to avoid penalties from the state.
Keep in mind that the minimum car insurance you need to legally drive in Tennessee won’t cover damage to your own car if you get into an accident. And if you’re at fault for an accident, your state-mandated liability limits may not cover all of your car’s damages or injuries to others. That’s why many insurance experts recommend drivers buy full-coverage car insurance to better protect their finances if you’re involved in an accident.
Penalties for driving without insurance in Tennessee
If you drive without insurance in Tennessee, or if you are unable to show proof of insurance or financial responsibility when stopped by police, you may be subject to the following fines and penalties:
- Fine: $300
- Vehicle towing
- Your driver’s license will be suspended until you show proof and pass the driver’s license test again.
- License and registration reinstatement fee: $65
Before any fines are assessed, the tax department will send you a notice to verify your insurance and ask you to respond within 30 days. If you don’t respond and provide proof of insurance or financial responsibility, you may be subject to state penalties. If you’re caught driving without insurance more than once, you may be subject to more severe penalties.
get into an accident without insurance
If you are involved in an accident while driving uninsured in Tennessee, you could face significant financial losses. Not only could you be subject to uninsured driving penalties and potentially lose your driver’s license, but you may also have to pay for any injuries or damages that result from the accident out of your own pocket. Tennessee is a liability state, meaning that the person deemed at fault for the accident will have to pay for the costs of your injuries and the physical damage to your car, which can be costly. You could also be sued by the other party, which could require you to pay additional court costs and attorney’s fees. You could also be charged with a Class A misdemeanor, which could result in a fine of up to $2,500 and jail time.
If you don’t have car insurance and you get into an accident, it will also affect your future premiums because auto insurance companies base their premiums on risk. When you buy car insurance, the accident will be recorded on your driving history, which could result in higher premiums.
