(The Center Square) – Drivers without automobile insurance could face a fine of $500 next year, per a bill passed by the Tennessee General Assembly and signed by Gov. Bill Lee.
The law requires that a resident carry liability automobile insurance with a minimum of $25,000 for each injury or death per accident, $50,000 for total injuries or deaths per accident and $25,000 for property damage per accident, according to the Department of Revenue.
The current fine for a first-time offense is $25 and will increase to $500 on July 1, 2027.
The law will also require proof of insurance before residents can register their vehicle with the state.
Residents who fail to insure the same more than once in the three years after receiving an initial notice for noncompliance will be fined $1,500, according to information from the Tennessee Department of Revenue.
Senate Bill 1667 was one of the last bills passed by the General Assembly on the next-to-last day of the session and was among the last signed by Lee.
“This bill is about one simple principle,” said Republican Clarksville Sen. Bill Powers when presenting it to the Finance, Ways and Means Committee. “If you drive on Tennessee roads, you should be fiscally responsible for the damage you cause. Right now, too many uninsured drivers are putting families at risk.”
The state does not require proof of financial responsibility to register vehicles. State officials can match the vehicle to information provided by state insurance providers. If it is discovered that a motorist does not have insurance, the owner will get a letter. A second letter is sent if the person does not respond, and a $25 fine is levied. The fine increases to $100 with the third notice, and the registration is suspended if a fourth notice is sent.
The low fine for driving without insurance made it cheaper for some to “gamble than comply with the law,” Powers said.
The bill also limits the amount of noneconomic damages an uninsured motorist can collect if they are involved in a motor vehicle accident.
Sen. Jeff Yarbro, D-Nashville, said during the committee debate that the portion of the bill is not an incentive, but it just “punishes people.”
“I’m not objecting to the fine or fees,” Yarbro said. “My point is that we’re just saying that they can’t recover from a loss. That’s just saying if they’re injured, they’re not entitled to the same rights as other drivers.”
The bill passed with some Democrat and Republican opposition and was signed by Lee on May 22.
