PRESS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: Senator Rosalind Kurita
Pamela George
Office: (615) 741-2374*Home: (931) 358-2005

General Assembly moves to strengthen auto insurance laws

Senator Rosalind Kurita: 'Mandatory auto insurance is a fairness issue for
Tennessee consumers'

Tennessee consumers who buy auto insurance have for years been hit with the
added burden of paying for coverage to protect themselves from uninsured
motorists. This week the General Assembly moved forward on legislation
requiring all motorists to carry liability insurance -- or face fines and
restrictions on vehicle registration renewal.
The House passed the mandatory insurance measure with an 89-7 vote on
Monday. Companion legislation passed the Senate Finance Committee on
Tuesday and will likely be considered on the floor of the Senate next week.
"This legislation puts some teeth in the state's 24 year-old financial
responsibility law, making liability insurance coverage a legal
responsibility of all motorists," said Senator Rosalind Kurita. "This is
really a fairness issue. It's simply not fair for some to drive uninsured
at the expense and risk of the rest of us."
Senator Kurita said motorists cited for traffic violations or involved in
accidents will be required to show proof they carry liability insurance or
proof they have a $60,000 cash bond posted with the Dept. of Safety.
Effective Jan. 1, 2002, failure to show proof of either sort will result in
a court date and $100 fine. Beginning July 1, 2003, the proposed sanctions
expand to include a requirement that violators show proof of insurance or a
bond as a condition for registering and obtaining tags for a vehicle.
Senator Kurita said motorists who simply forget to carry proof of insurance
or bond won't be fined if they can show the court they were covered at the
time of the traffic violation or accident.
According to the Dept. of Safety, the state is in the process of purchasing
a computer system capable of cross-referencing traffic citations and
accident records with insurance information. Officials need until July 1,
2003 to implement the second phase of the legislation.
Tennessee is one of only three states that does not currently mandate auto
insurance.