Increased Penalties for Noncompliance with Financial Responsibility Law
This proposed bill would increase penalties for failing to comply with Tennessee's financial responsibility law. Previously, the coverage failure fee was $25 for the first offense; this bill would raise it to $500 and further increase it to $1,500 for second or subsequent offenses, leading to suspension or revocation of vehicle registration. Additionally, if a plaintiff is not in compliance with the financial responsibility law, they would be barred from recovering noneconomic damages from a defendant arising out of the use of a vehicle. This change affects all drivers and impacts their ability to recover certain types of damages in case of an accident.
The previous law imposed a $25 fee for the first failure to comply with the financial responsibility law, without provisions for suspension or revocation of registration.
This proposed bill would increase penalties for failing to comply with Tennessee's financial responsibility law. Previously, the coverage failure fee was $25 for the first offense; this bill would raise it to $500 and further increase it to $1,500 for second or subsequent offenses, leading to suspension or revocation of vehicle registration. Additionally, if a plaintiff is not in compliance with the financial responsibility law, they would be barred from recovering noneconomic damages from a defendant arising out of the use of a vehicle. This change affects all drivers and impacts their ability to recover certain types of damages in case of an accident.