Car insurance around the country -- like that found with Tennessee car insurance -- is pretty much a mandatory thing to have for those who intend to register and then operate a motor vehicle on the roads and highways. The Volunteer State of Tennessee, however, is a little different in that it doesn't mandate by law that auto insurance be carried.
The above fact kind of puts the state somewhat out of the mainstream, but it still doesn't mean that the need for insurance coverage is any less than in any other state. By law, Tennessee mandates that drivers be able to maintain what the state calls "proper financial responsibility." In other words, you must be able to prove you have the resources necessary to cover any damages in an accident.
Given our litigious environment -- and the fact that many automobiles today can be quite costly to repair or replace -- it only makes sense, then, that auto insurance be carried rather than some amount of money in a bank account that's been put aside in case of an accident that has led to injury and damage to individuals and property.
All of that being said, should you decide to obtain Tennessee car insurance, you'll need to purchase a certain level of mandatory minimum coverage. According to state law, those levels come in at $25, 000 of personal liability coverage for one person injured or killed in an accident and another $50, 000 to cover all people killed or injured in the accident.
Additionally, you will need to maintain at least $15, 000 of property damage coverage for any damage incurred in a single accident. It is easy to remember the levels if you think of the numbers 25/50/15. Should you be involved in an accident or be pulled over as the result of a moving violation you will be asked to produce proof of proper financial responsibility.
The above are two good reasons for why it is easier to obtain and then maintain car insurance rather than some form of bond or financial responsibility. Failing to maintain financial responsibility or not being able to provide proof of such financial responsibility is subject to a $100 fine and suspension of driving privileges.
Keep in mind, also, that most lien holders (auto loan lenders) have a requirement that auto insurance be carried regardless of what state law may or may not have to say on the subject. Consider that the potential costs involved in even a single accident can exceed $100, 000 and it's easy to see why it's always a better idea to get Tennessee car insurance when owning and operating a car in the Volunteer State.
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