Tennessee law requires proof of financial responsibility. Insurance on your trailer is one form of proof of financial responsibility. The state also recognizes self-insurance if reviewed and authorized by the Tennessee Department of Safety as well as bonds and cash deposits placed on file and certified by the Department.
Tennessee's minimum requirements for financial responsibility for vehicles, including trailers, are $25,000 for a single injury or death, $50,000 for all injuries or deaths within a single accident and $15,000 for property damage per accident. You need certification for both the motor vehicle and the trailer. Tennessee licensed auto insurance agents offer packages that cover both minimum trailer requirements as well as higher levels of coverage that are more likely to indemnify you against the damage a trailer accident can cause.
At the time of an accident, Tennessee law requires law enforcement officers to demand proof of financial responsibility from all involved parties regardless of fault. If any party lacks proof of financial responsibility at the scene and cannot furnish it promptly to the Commissioner of Safety, the party may face a "stop" placed on the registration of his vehicle (and trailer if it is interstate licensed) until proper evidence of financial responsibility is furnished.
