Tennessee: Insurance and financial responsibility Practice Test
Tennessee’s Financial Responsibility Law, the proof of insurance you can show, and what happens when you cannot show it.
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Questions are original and based on the official manual "Tennessee Comprehensive Driver License Manual" (March 2025 printing), Tennessee Department of Safety and Homeland Security.
All 15 questions in this practice test
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What is the result for an applicant who is required to show proof of car insurance/financial responsibility but has not done so?
- The applicant may get only a Class PD license
- The applicant is not eligible for a driver license
- The applicant may get a license after 30 days
- The applicant may get a license if the road test is passed twice
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Correct answer: The applicant is not eligible for a driver license
Anyone required to show proof of car insurance or financial responsibility who has not done so is not eligible for a license.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 4 · Open this page in the manual (Manual page 4)
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After a suspension for frequent violations ends, what must an adult submit to get a regular license back?
- A certificate from a driving school only
- A letter from an employer
- Proof of liability insurance (SR-22 for adults)
- Proof of a clean criminal record
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Correct answer: Proof of liability insurance (SR-22 for adults)
After the suspension time, the driver must pay reinstatement fees and submit proof of liability insurance, which is SR-22 insurance for adult drivers.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 86 · Open this page in the manual (Manual page 86)
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Is collision insurance required by Tennessee law?
- Yes, for every driver
- Yes, for drivers under 21 only
- No
- Yes, for new vehicles only
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Correct answer: No
The manual says collision insurance is not required by Tennessee law, although drivers must show evidence of financial responsibility.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 88 · Open this page in the manual (Manual page 88)
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According to the manual, what is the best way to protect yourself and your driver license?
- Keep a written record of trips
- Have adequate insurance coverage
- Avoid driving in heavy traffic
- Carry a spare copy of your license
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Correct answer: Have adequate insurance coverage
The manual says adequate insurance covering death, bodily injury and property damage is the best protection.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 88 · Open this page in the manual (Manual page 88)
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Which type of insurance provides coverage for damages you cause to other persons?
- Collision insurance
- Uninsured motorist insurance
- Comprehensive insurance
- Liability insurance
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Correct answer: Liability insurance
Liability insurance covers damages you cause to other persons.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 88 · Open this page in the manual (Manual page 88)
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Which type of insurance provides coverage for damages sustained by your own vehicle?
- Collision insurance
- Liability insurance
- Uninsured motorist insurance
- Medical payments insurance
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Correct answer: Collision insurance
Collision insurance covers damages sustained by your vehicle.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 88 · Open this page in the manual (Manual page 88)
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Which type of insurance provides coverage for the damages caused by uninsured persons?
- Liability insurance
- Collision insurance
- Uninsured motorist insurance
- Personal property insurance
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Correct answer: Uninsured motorist insurance
Uninsured motorist insurance covers damages that uninsured persons cause.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 88 · Open this page in the manual (Manual page 88)
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Which of these can be used as evidence of financial responsibility in Tennessee?
- A vehicle registration renewal receipt
- A declaration page of your insurance policy
- A driver license renewal fee receipt
- A written letter from your car loan lender
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Correct answer: A declaration page of your insurance policy
A declaration page of the insurance policy is one of the listed forms of evidence of financial responsibility.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 88 · Open this page in the manual (Manual page 88)
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Which of these can be used as evidence of financial responsibility in Tennessee?
- A receipt for the last annual vehicle inspection
- A signed statement from your employer about work
- A printout of your current bank account balance
- An insurance card from an authorized Tennessee insurer
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Correct answer: An insurance card from an authorized Tennessee insurer
An insurance card from a company authorized to do business in Tennessee is one of the listed forms of evidence.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 89 · Open this page in the manual (Manual page 89)
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Which of these shows financial responsibility when issued by the Commissioner of the Department of Safety?
- A certificate of cash deposit or bond paid or filed
- A certificate of vehicle ownership and title
- A certificate of completed driver training course
- A certificate showing a good driving record
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Correct answer: A certificate of cash deposit or bond paid or filed
A Commissioner's certificate that a cash deposit or bond in the required amount has been paid or filed counts as evidence of financial responsibility.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 89 · Open this page in the manual (Manual page 89)
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What happens to a driver convicted of failure to show evidence of financial responsibility?
- The driver pays a fine and nothing else changes at all
- The license is restricted to daytime driving hours
- Driving privileges are suspended and tag renewal is stopped
- The driver receives only an advisory letter by mail
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Correct answer: Driving privileges are suspended and tag renewal is stopped
Conviction brings suspension of driving privileges and a stop on the renewal of vehicle tags and registration.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 89 · Open this page in the manual (Manual page 89)
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When a claim is filed with the Department and a judgment is reasonably possible, which of these is one of the three things you must do?
- Obtain notarized releases from all claimants
- File a second crash report with local police
- Complete a defensive driving course
- Surrender your vehicle registration
Show answer
Correct answer: Obtain notarized releases from all claimants
You must show proof of liability insurance at the time of the crash, obtain notarized releases from all claimants, or post a cash or corporate surety bond.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 89 · Open this page in the manual (Manual page 89)
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What happens if you do not comply with the requirements after a claim is filed with the Department following a crash?
- Your vehicle will be impounded for at least 30 days
- Your points are doubled for the next twelve months
- Driving and registration privileges are revoked
- You receive an advisory letter in the mail only
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Correct answer: Driving and registration privileges are revoked
Non-compliance leads to revocation of driving and registration privileges.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 89 · Open this page in the manual (Manual page 89)
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Before a proposed revocation for failing to establish financial responsibility, how must you request an administrative hearing?
- By telephone call within 24 hours of the notice
- In writing, by the revocation's effective date
- In person after the revocation has begun
- By email after your license is reinstated
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Correct answer: In writing, by the revocation's effective date
The request must be submitted in writing on or before the effective date of the proposed revocation.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 89 · Open this page in the manual (Manual page 89)
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After a revocation for failure to establish financial responsibility for a crash, who must file an SR-22 form before driving privileges can be reinstated?
- The county clerk
- The investigating police officer
- The other driver involved
- A liability insurance carrier
Show answer
Correct answer: A liability insurance carrier
A liability insurance carrier must file an SR-22 form with the Department of Safety before reinstatement.
Source: Tennessee Comprehensive Driver License Manual (March 2025 printing), page 89 · Open this page in the manual (Manual page 89)