As of last week, both houses of the Tennessee General Assembly have passed the most aggressive package of penalties against the state’s uninsured drivers since mandatory liability insurance was mandated in 1977. Government officials are hoping these new laws will reduce the number of uninsured motorists in the state. The new provisions took effect July 1, 2015, but some changes won’t be implemented until 2016 and later. Here’s what you need to know about the changes: 
- The Fine: Effective July 1, 2015, the fine for being an uninsured driver increases from $100 to $300 (it’s a Class A Misdemeanor).
- Towing: After January 1, 2016, police officers will be able to have your vehicle towed immediately if you don’t have proof of insurance.
- New Insurance Verification Program: Before January 1, 2017, Tennessee will implement a new online insurance verification program that will track down uninsured drivers through their vehicle registrations.
- Tag Renewal: You won’t be able to renew your tags if the new verification system shows that the vehicle is uninsured until you provide proof of insurance and you may be subject to reinstatement fees.
- Other Penalties: Drivers found to be uninsured through the new verification system will face harsh penalties including up to $125 in coverage failure fees and suspension or revocation of the owner’s vehicle registration.
40,000 crashes occurred last year on Tennessee highways in which one party or the other or sometimes both, were uninsured according to state records. Tennessee passed a mandatory proof of liability insurance law in 1977. It requires Tennessee drivers to carry minimum levels of liability: $25,000 for one injury or death, $50,000 for all injuries or death and $15,000 for property damage. Until July 1, the penalty for violating the law was a misdemeanor fine of $100.
Tennessee is sixth in the nation for the number of uninsured drivers. Twenty-three percent of its driving population — nearly a million drivers — is uninsured, according to insurance records sources.
Insurance sources indicated the legislation could help stabilize or even lower auto insurance premiums for consumers with excellent driving records. At best, it will stop the some of the higher rise of premiums.
The bill awaits Governor Haslam’s signature which he is expected to sign.
Insured drivers with Benton White Insurance meet the state’s minimum coverage requirements and in most cases far exceed minimums because of the important need to be protected of the uninsured or insured motorists for catastrophic events. Remember to keep your proof of coverage at all times so you can show you are NOT an uninsured motorists if a law enforcement official needs to know. If you are reading this and don’t have insurance, we can help. Or if you have friends who you know that don’t insure their vehicle(s) and are driving in our state as an uninsured motorist, it now is less expensive to let us insure them instead of them face the stiffer penalties for not having it. Call any of our staff at 615.377.1212 or EMAIL us at info@BentonWhite.com. We’ll help uninsured’s get it right!
