In 1977, the Volunteer State became one of the many states in the nation that follow the Financial Responsibility Law which mandates that any person operating a vehicle must have compensation available in the event that they are found liable for causing an accident which results in bodily injury or property damage to a third party. The financial responsibility law is designed to ensure that motorists have a way of recovering losses for injuries and damages that they sustain as a result of a traffic collision if struck by another driver.
Operators can comply with these laws in a couple ways; an individual may obtain a certificate from the Department of Safety dictating that a cash deposit or bond has been posted. Due to the amount that needs to be posted with the Department of Safety, most motorists choose to purchase a policy from a Tennessee auto insurance company licensed to issue coverage in the state. If choosing to buy a car insurance policy the limits purchased must meet the minimum required by law; the minimum liability limits are $25,000 for bodily injury or death to one person, $50,000 for bodily injuries or death to two or more people and $15,000 for property damage per accident. Individuals can choose to purchase higher limits for an additional premium.
Leave a Reply