In Tennessee you are not required to have liability car insurance coverage. However, you are required to comply with the states financial responsibility law. Under the Tennessee financial responsibility law, you must have proof of financial responsibility or proof that you can pay for expenses you caused in an accident. Under the financial responsibility law, your proof of financial responsibility may be your proof of car insurance for Tennessee or certification from the Department of Safety (DOS) which states that you have a bond or deposit that complies with the requirements of the state. If you do not have a proof of financial responsibility in the event of an accident resulting to at least $50 damage to property or a moving violation, your drivers license will be suspended.

Since 2001, the law was amended requiring all officers of the law to ask all parties involved in an accident for proof of financial responsibility. This means that even if you are not at fault, but are involved in a motor vehicle accident, you will have to show some sort of proof of financial responsibility. If you do not have any proof with you in the event of an accident, you will be required to show proof in the court of law. If you can show your proof before the court hearing, your violation will be automatically dismissed. However, if you fail to show proof in the hearing, your vehicle will be placed on Stop, meaning you cannot register it unless you get financial responsibility. In Tennessee, you will be charged with Class C misdemeanor if you do not have proof of financial responsibility. You will also have to pay the fine of $100 and your license will be suspended.

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