Financial responsibility law — Tennessee Permit Test

Liability insurance covers damages you cause to other people.

If you hit another car, liability coverage pays for their damage so the bill does not land on you alone.

Liability insurance provides coverage for damages you cause to other persons.

Collision insurance is not required by Tennessee law, but the Financial Responsibility Law requires drivers to produce evidence of financial responsibility.

Covering your own car is your choice. Being able to pay for harm you cause to others is not.

Although collision insurance is not required by Tennessee law, the Financial Responsibility Law requires drivers to produce evidence of financial responsibility.

You must produce evidence of financial responsibility when charged with any violation or when in a crash, no matter who was at fault.

Even if the other driver caused the crash, you still have to show you are insured. Keep the card in the car.

This is required when charged with any violation or when involved in a motor vehicle crash without regard to apparent or actual fault.

An insurance card from a company authorized to do business in Tennessee is accepted as evidence of financial responsibility.

The card in your glove box is the quick proof an officer asks for. Make sure it is current and from a licensed company.

An insurance card from an insurance company authorized to do business in Tennessee;

If you are convicted of failing to show evidence of financial responsibility, your driving privileges are suspended and a stop is placed on renewing your vehicle tags and registration.

Driving uninsured costs more than the ticket. You lose the license and cannot renew the tags until you prove coverage.

If a driver is unable to present evidence and is convicted on the charge of failure to show evidence of financial responsibility, his/her driving privileges will be suspended as well as a stop placed on the renewal of vehicle tags and registration.

If a claim is filed against you with the Department of Safety after a crash and you do not meet its requirements, your driving and registration privileges will be revoked.

A driver who causes damage and will not pay or prove insurance loses both the license and the plates.

If you do not comply with these requirements, your driving and registration privileges will be revoked.

What does liability insurance cover?

Damages you cause to others. If you hit another car, liability coverage pays for their damage so the bill does not land on you alone. Tennessee Comprehensive Driver License Manual, p.88: “Liability insurance provides coverage for damages you cause to other persons.”