The Volunteer state requires that all motorists must follow the Financial Responsibility law. This can be done by purchasing coverage from an insurer that is approved to issue policies in the state, the policy must meet the minimum liability limits that are required by Tennessee auto insurance laws and must be in effect at all times while operating a vehicle. The minimum limits of liability required by law are as follows; $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more people and $15,000 for property damage per accident. The main agenda behind the financial responsibility law is to help keep uninsured drivers off of the streets and to ensure that there is compensation in place for other parties who may suffer injuries and/or damages to their property by fault of a policyholder.

Driving while uninsured can have consequences and end in fines and penalties. Being unable to furnish evidence of coverage is considered a Class C misdemeanor and can result in a fine of up to $100, suspension of driving privileges and a “STOP” placed on a vehicle file following a conviction. A STOP can end in the prevention of an individual’s renewal of registration for their vehicle. A STOP can be removed once the owner has provided evidence of financial responsibility to the authorities, have had their driving privileges reinstated and have paid all fines and fees that have been accumulated as a result of the violation.

Tennessee Car Insurance Coverage Options

Motorists should be aware that the coverage required by the Tennessee Department of Safety will only compensate other parties in the event that the policyholder is found to be responsible for causing a traffic accident. To obtain compensation for a person’s property (vehicle) for physical damage or themselves for bodily injuries, one must purchase additional coverage.

There are many options to choose from when purchasing policies from insurers. One of the more common “add-ons” is Comprehensive and Collision, also known as “comp and collision” and often referred to as “full coverage” when combined with a liability policy; when purchased, this will pay for damages to an insured’s vehicle minus the amount of the deductible that has been chosen. In order to cover bodily injury for the policyholder they would need to buy the Medical Expense option which will pay for costs resulting from injuries due to a collision up to the policy limits.

Another very beneficial type of protection is Uninsured Motorist; this will pay for the bodily injury of the insured and/or their passengers in the event that they are struck by a driver who does not have auto insurance, is underinsured, or if victims of a hit-and-run. Consumers should always evaluate their needs and purchase the proper protection that will best suit their situation in order to prevent future financial burdens.