Tennessee Financial Responsibility Law

The act conditions the privilege of driving and registering a motor vehicle on the owner's or operator's demonstrated ability to pay for harm a crash may cause, setting minimum coverage for bodily injury, death, and property damage and defining how that responsibility may be proven — a liability policy meeting prescribed terms, a deposit of money or securities with the state motor vehicle agency, or qualification as a self-insurer, with stricter proof required of for-hire passenger vehicles and separate treatment of nonresident owners and drivers. Enforcement runs through reporting: crash reports, notices from insurers, electronic insurance verification, certain convictions, and unsatisfied judgments trigger suspension of the driver license and vehicle registrations, which stay suspended for a set period until proof of responsibility is filed and a reinstatement fee is paid, with judgments payable in installments and restrictions on selling a vehicle while suspended. It also regulates the insurance itself — required policy provisions, cancellation procedures, an apportionment plan for applicants who cannot obtain coverage in the ordinary market, and confidentiality of certain policy records — and imposes penalties for violations.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.