Penalties for Driving Without Insurance in Tennessee

To drive legally in Tennessee, drivers are required to carry a minimum level of car insurance coverage. Individuals caught driving without adequate insurance risk fines, jail time, and even misdemeanor charges as possible penalties, in addition to other inconveniences like potential vehicle impoundment. Not only does proper insurance keep you in compliance with state law, but it can also shield you from the financial ruin that an accident can cause. Understanding the costs of carrying (or failing to carry) insurance can help you make informed decisions both as a citizen and a consumer.

Minimum insurance required in Tennessee

In the state of Tennessee, drivers are required to carry a minimum amount of liability car insurance. This insurance must be valid for each car they own and operate in the state. If caught behind the wheel while failing to meet these requirements, you could face a ticket for driving without insurance and may be subject to even more severe penalties, depending on your driving record.

On January 1, 2023, Tennessee updated its minimum requirements for car insurance. The state requirements for liability insurance are as follows:

• $25,000 per person for bodily injury liability
• $50,000 per accident for bodily injury or death liability
• $25,000 per accident for property damage liability (increased as of January 1, 2023)

An exception for Tennessee’s insurance requirements is available, but the driver must show proof of financial responsibility in one of three ways. You will have to prove to the state’s Department of Revenue that you are financially capable of taking responsibility after an accident by doing one of the following:

• Post a bond with the Department of Revenue of $65,000.
• Provide a cash deposit with the Department of Revenue of $65,000.

If you are behind the wheel of a vehicle in Tennessee, you must carry either proof of insurance or financial responsibility to avoid penalties from the state.

Keep in mind that the minimum car insurance requirements to drive legally in Tennessee will not cover damage to your vehicle if you cause an accident. It is also possible that the state’s required liability limits may not be enough to cover all vehicle damage or injuries to someone else if you are responsible for an accident. That’s why many insurance experts advise drivers to carry full coverage car insurance to better protect your finances in case you are involved in an accident.

Penalties for driving without insurance in Tennessee

If you decide to drive without insurance in Tennessee, or if you cannot provide proof of insurance or financial responsibility upon being stopped by the police, you could be subject to the following fines and penalties:

• Fines of up to $300 that can accrue over time if left unpaid
• Having your vehicle towed
• A suspended driver’s license until you can provide proof of insurance and pass the driver’s test again
• Suspended registration and a required registration restoration fee of $65
• You may be required to file an SR-22 insurance form to have insurance coverage issued or reinstated

Before any penalty is levied against you, the Department of Revenue will send a notification to request insurance verification and give you 30 days to respond. If you fail to respond and provide proof of insurance or financial responsibility, expect to be subject to penalties from the state. You could face even more severe penalties if caught driving without insurance more than once.

Getting into an accident without insurance

If you are involved in an accident while driving without insurance in Tennessee, you could face significant financial consequences. Not only could you be subject to the penalties for driving without insurance and face the potential of losing your driver’s license, but you may also be required to pay out-of-pocket for any injuries or damages caused by the accident. Tennessee is an at-fault state, meaning the person deemed to be at fault for an accident is required to pay costs for injuries as well as physical damage to the car, and the financial costs can be steep. You could be sued by the other party, requiring you to pay additional fees for court and a lawyer. You could also face a Class A misdemeanor, resulting in up to $2,500 in fines and possible jail time.

Even if you can recover financially from causing an accident while driving uninsured, you may face the long-term reality of paying higher insurance premiums. Companies will see you as a higher-risk driver, and even basic coverage may be more expensive to maintain. When shopping for car insurance, the incident may appear in your driving history and result in a higher premium.

How does driving without insurance in Tennessee affect future insurance rates? 

Driving without car insurance can have a long-term impact on your ability to secure affordable coverage in the Volunteer State. Once you have been identified as a one-time uninsured motorist, you become a riskier customer for insurance providers to cover at present– or in the future.

A lapse in insurance coverage or lack of coverage history can also contribute to higher insurance rates, so acquiring auto insurance as soon as you need it and renewing your coverage consistently can help keep your rates more affordable. Tennessee rates after a lapse in coverage can spike to $2,331 for a year of full coverage (the state minimum mandate is $2,090) and $576 for minimum coverage (up from the current rate of $511 per year for those who are consistently insured).

Insurers will consider the past consistency of your coverage when determining your insurance rate–a longer lapse can result in a higher premium long-term. Driving without insurance is not only a significant risk in the present, but doing so can affect your rates in the future– even once you gain proper coverage.

Lowering your auto insurance rates in Tennessee

If you’re looking to lower your premiums, demonstrating to insurers that you are aware and accountable can help you build a positive track record and qualify as a less-risky driver. Keeping uninterrupted insurance coverage is one step in the right direction, but so is driving carefully and obeying the rules of the road. You may even find that sharing your driving habits with your insurer can earn you a discount, as with some company telematics programs.

Depending on your personal rating factors, Tennessee drivers might be able to find cheap car insurance for as little as $199 per year for minimum coverage (as of February 2025), which is less than the penalty for driving without insurance in Tennessee. Even factors like your credit history can impact your rates, so understanding how premiums are calculated can help you make informed decisions when shopping for an auto policy. Requesting quotes from several companies and comparing the fine print can also ensure you score the best coverage at the most affordable price.

Frequently asked questions

• What happens if you provide false insurance information in Tennessee?
  

  If you provide false car insurance information in Tennessee in an attempt to avoid tickets or penalties for driving without insurance, you could be charged with a Class A misdemeanor for attempting to commit insurance fraud, which is considered a crime. You could face up to 11 months, 29 days in jail and up to $2,500 in fines if you are convicted of this crime.

• How much is car insurance in Tennessee?
  

  The average cost of car insurance in the Volunteer State as of February 2025 is $511 for state-mandated minimum coverage and $2,090 for full coverage, which includes optional collision and comprehensive coverage. These two types of insurance help pay for repairs or replacement to your car after an at-fault accident or other vehicle damage (such as hitting an animal). Average Tennessee rates are fairly low compared to the national averages of $773 for minimum and $2,670 for full coverage. Many insurance experts recommend that you purchase higher levels than the minimum and consider full coverage for robust financial protection, if you are able to do so. The state’s minimum requirements might not be enough to cover all damages and medical costs following a serious accident.

• What happens if I do not provide proof of car insurance in Tennessee?
  

  In 2017, the James Lee Atwood Jr. Law went into effect, bringing with it stiffer penalties for failure to provide proof of insurance during a traffic stop or at the scene of an accident. The fine was increased from $100 to $300 and chargeable as a Class C misdemeanor, which could include up to 30 days in jail.

• Is driving without insurance in Tennessee illegal?
  

  Yes, driving without insurance in TN is illegal unless you have, as an alternative, put down a bond or provided a cash deposit with the Department of Revenue for $65,000. Most Tennessee residents, however, meet their requirements by purchasing a policy that is at least 25/50/25, which covers the state’s liability requirement but provides no additional coverage. If you have a car loan or lease, your lender may require you to purchase higher levels of liability coverage and/or a full coverage policy.

• What is SR-22?
  

  SR-22 is not a type of insurance policy but a form filed by your insurance company. This form shows that you carry the minimum level of coverage required by your state and is sometimes called a certificate of financial responsibility. Not all insurance companies offer an SR-22, but it may be required of you following an accident or failure to carry proper insurance or licensure. SR-22 forms are not typically required permanently, but drivers may be assigned to hold one for a period of time after their offense.

• Who is James Lee Atwood Jr.?
  

  The James Lee Atwood Jr. law is named in honor of a 30-year-old Memphis driver who was killed by an uninsured motorist in Tennessee in 2014. Governor Bill Haslam signed the bill into law in 2015, when it took immediate effect.