Roadwise States Tennessee Driving lessons Insurance & financial responsibility Tennessee driving lesson · Driver Responsibility & Crashes
Insurance & financial responsibility A 3-minute lesson from the Tennessee course. Read the rules and examples, follow the handbook page references, and check your understanding before you move on.
Read time 3 minutes
Course unit Driver Responsibility & Crashes
Checkpoint questions 6
Source pages 102, 103 Tennessee's Financial Responsibility Law protects the public from drivers who can't pay for the damage they cause. The best protection for you and your license is adequate insurance for death, injury and property damage.
Collision insurance Pays for damage to your own vehicle. Not required by Tennessee law.
Handbook p. 102 ↗ Uninsured motorist insurance Pays for damage caused by people who have no insurance.
Handbook p. 102 ↗ Know the rule
You must produce evidence of financial responsibility whenever you're charged with any violation or involved in a crash — no matter who was at fault.
Handbook p. 102 ↗ Accepted evidence of financial responsibility The declaration page of your insurance policy An insurance binder An insurance card from a company authorized in Tennessee A Commissioner's certificate showing a cash deposit or bond was filed Proof you qualify as a self-insurer Handbook p. 103 ↗ Know the rule
Convicted of failing to show evidence? Your license is suspended and a stop is placed on renewing your vehicle tags and registration.
Handbook p. 103 ↗ If someone files a crash claim that could lead to a judgment, you must: Show you had liability insurance at the time of the crash, or Get notarized releases from everyone who filed claims, or Post a cash or corporate surety bond for the damages claimed Handbook p. 103 ↗ Know the rule
If you don't, your driving and registration privileges are revoked. You can request a hearing in writing on or before the revocation date.
Handbook p. 103 ↗ SR-22 A form your insurance company files with the Department proving liability coverage — required before reinstatement after certain suspensions.
Handbook p. 103 ↗ Put it into practice
You're rear-ended at a red light — clearly not your fault. The officer still asks for proof of insurance. Showing your insurance card satisfies the law; having none could mean suspension even though you didn't cause the crash.
Check your understanding Read the question, decide on an answer, then open it to check the explanation. These are Roadwise study questions based on the source handbook.
Liability insurance provides coverage for: Damage to your own vehicle only Damages you cause to other people Only medical bills for the policyholder Theft of your own vehicle Answer: Damages you cause to other people
Liability insurance covers damages you cause to other people, as opposed to collision insurance which covers your own vehicle.
Handbook p. 102 ↗ According to the handbook, which of these is NOT required by Tennessee law? Evidence of financial responsibility A valid driver license Collision insurance Current vehicle registration Answer: Collision insurance
Collision insurance is not required by Tennessee law, but drivers must still show evidence of financial responsibility.
Handbook p. 102 ↗ An SR-22 filing is generally required from an insurance company to: Register a new vehicle for the first time Renew a standard license with no violations Apply for a learner permit Reinstate privileges after violations Answer: Reinstate privileges after violations
Drivers often need an SR-22 form filed by their insurer to reinstate driving privileges after certain suspensions or revocations.
Handbook p. 103 ↗ If a driver is convicted of failing to show evidence of financial responsibility, what happens? License suspended and a stop on tag renewal Permanent revocation with no hearing Nothing if a small fee is paid Driving restricted to daylight only Answer: License suspended and a stop on tag renewal
Failure to show financial responsibility can lead to suspended driving privileges and a stop on vehicle tag renewal.
Handbook p. 103 ↗ Uninsured motorist insurance provides coverage for damages caused by drivers who do not have insurance. True False Answer: True
Uninsured motorist insurance covers damages caused by uninsured persons involved in a crash with you.
Handbook p. 102 ↗ You are only required to show evidence of financial responsibility if you are found to be at fault in a crash. True False Answer: False
Evidence of financial responsibility is required when charged with a violation or involved in a crash, without regard to fault.
Handbook p. 102 ↗ Previous lesson Restricted licenses & medical reviews Next lesson After a crash More in Driver Responsibility & Crashes About the source Roadwise’s Tennessee course uses the driver handbook edition supplied with this study pack. This lesson cites source pages 102, 103. The linked PDF is a third-party mirror of the handbook, rather than a government-hosted page.
Open the handbook source PDF · View the source edition
For current application requirements, fees, appointments, and the format that applies to your age or license type, check Tennessee’s DOS. Roadwise provides study material and does not issue permits or licenses.