Yes. Generally it is because the car had no insurance as required under state law. You can likely resolve the issue by obtaining insurance and providing proof to the DMV.
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Yes, but try to work out a payment plan with them to avoid this, and please get insurance.
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Are you sure the co-owner is actually on the title? If so, then the co-owner's license could be suspended. However, if he just co-signed
on the car loan, he will probably be ok. Double check the title.
Despite having a state law requiring auto insurance for car owners, Tennessee also has older laws that pre-date the insurance rules that allow registered owners to be held financially responsible for causing harm to someone else. If you and the co-owner are equally listed on records with the state, then there is a possibility that the other owner's license could be suspended. However, it could only happen through an administrative hearing through the Department of Safety. You would get a letter notifying you of that fact before a suspension hearing happened. You would have to respond to keep from having your license suspended, and explain the circumstances. Finding a way to compensate the injured party would go a long way to stopping that from happening. See also the link below to the Tennessee Department of Safety web page, which contains a host of information about the license suspension process and necessary forms to use when no insurance is available.
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