The Tennessee Department of Revenue is launching a new insurance verification system in early 2017 to promote compliance with the state's Financial Responsibility Law.
Ahead of the program's launch next month, the Department of Revenue is encouraging motorists to ensure that proper insurance coverage or other financial responsibility is in effect for their vehicles. In particular, motorists should make sure that their Vehicle Identification Number, or VIN, is correct on registration and insurance documents.
"Tennessee already has a financial responsibility law that applies to Tennessee drivers," Revenue Commissioner David Gerregano said. "The goal of this new system is to efficiently and effectively check compliance in order to reduce the number of motorists who lack insurance or another form of financial responsibility."
The James Lee Atwood, Jr. Law was passed during the 2015 legislative session in order to help reduce the overall number of uninsured drivers on Tennessee roadways. As part of this law, the Tennessee Department of Revenue developed an insurance verification program which will be implemented in January 2017.
Under the program, all insurance carriers registered to write personal automobile liability policies in Tennessee must register with the Department and provide required policy information. The state's new insurance verification system will check the policies provided by the insurance companies against all currently registered VINs in Tennessee. Rather than checking for insurance coverage at the time of registration renewal, the system will verify insurance coverage on a continual basis throughout the year.
If the system is unable to confirm insurance coverage for a vehicle, a notice will be sent to that owner directing him or her to a website where he or she can provide proof of minimum liability insurance or other means of financial responsibility.
If a customer does not respond to the initial notice, subsequent notices will follow. Failure to comply with the notices could result in fines and eventual vehicle registration suspension.
For more information about the department's new program, please visit www.DriveInsuredTN.com.