diff --git a/rai/client_test.go b/rai/client_test.go
index 116e5b1..bd076df 100644
--- a/rai/client_test.go
+++ b/rai/client_test.go
@@ -18,6 +18,8 @@ import (
 	"context"
 	"fmt"
 	"net/http"
+	"os"
+	"path/filepath"
 	"strings"
 	"testing"
 	"time"
@@ -63,6 +65,34 @@ func findModel(models []Model, name string) *Model {
 	return nil
 }
 
+// deleteTokenCacheDir deletes the token file cache and the "~/.rai" directory if empty
+func deleteTokenCacheDir(t *testing.T) {
+	fname, err := cachePath()
+	if err != nil {
+		t.Error("Failed to get token cache file name")
+	}
+	err = os.Remove(fname)
+	if err != nil {
+		t.Errorf("Failed to delete token cache file %s\n", fname)
+	}
+	err = os.Remove(filepath.Dir(fname))
+	if err != nil {
+		fmt.Printf("Could not delete token cache file directory %s - err: %s\n", filepath.Dir(fname), err)
+	}
+}
+
+// assertTokenCacheFileCreated asserts that the token file has been created
+func assertTokenCacheFileCreated(t *testing.T) {
+	fpath, err := cachePath()
+	if err != nil {
+		t.Error("Failed to get token cache file name")
+	}
+
+	if _, err := os.Stat(fpath); err != nil {
+		t.Errorf("Failed to stat token cache file %s, err: %s\n", fpath, err)
+	}
+}
+
 func TestNewClient(t *testing.T) {
 	var testClient *Client
 	var cfg Config
@@ -95,6 +125,30 @@ func TestNewClient(t *testing.T) {
 	assert.NotNil(t, err)
 }
 
+// Test token cache file creation
+func TestTokenCacheFile(t *testing.T) {
+	deleteTokenCacheDir(t)
+
+	var testClient *Client
+	var cfg Config
+
+	err := getConfig(&cfg)
+	assert.Nil(t, err)
+
+	opts := ClientOptions{Config: cfg}
+	testClient = NewClient(context.Background(), &opts)
+
+	token, err := testClient.accessTokenHandler.GetAccessToken()
+	assert.Nil(t, err)
+	assert.NotNil(t, token)
+
+	tokenCached, _ := testClient.accessTokenHandler.GetAccessToken()
+
+	assert.Equal(t, token, tokenCached)
+
+	assertTokenCacheFileCreated(t)
+}
+
 // Test database management APIs.
 func TestDatabase(t *testing.T) {
 	client := test.client
diff --git a/rai/handlers.go b/rai/handlers.go
index aec2b76..48ee8fe 100644
--- a/rai/handlers.go
+++ b/rai/handlers.go
@@ -22,6 +22,7 @@ import (
 	"os"
 	"os/user"
 	"path"
+	"path/filepath"
 
 	"github.com/pkg/errors"
 )
@@ -56,8 +57,8 @@ func NewClientCredentialsHandler(
 	return &ClientCredentialsHandler{client: c, creds: creds}
 }
 
-// Returns the name of the token cache file.
-func cacheName() (string, error) {
+// Returns the path of the token cache file.
+func cachePath() (string, error) {
 	usr, err := user.Current()
 	if err != nil {
 		return "", err
@@ -65,15 +66,6 @@ func cacheName() (string, error) {
 	return path.Join(usr.HomeDir, ".rai", "tokens.json"), nil
 }
 
-// Returns the directory of the token cache file.
-func cacheDir() (string, error) {
-	usr, err := user.Current()
-	if err != nil {
-		return "", err
-	}
-	return path.Join(usr.HomeDir, ".rai"), nil
-}
-
 // Read the access token corresponding to the given ClientID from the local
 // token cache, returns nil if the token does not exist.
 func readAccessToken(creds *ClientCredentials) (*AccessToken, error) {
@@ -88,7 +80,7 @@ func readAccessToken(creds *ClientCredentials) (*AccessToken, error) {
 }
 
 func readTokenCache() (map[string]*AccessToken, error) {
-	fname, err := cacheName()
+	fname, err := cachePath()
 	if err != nil {
 		return nil, err
 	}
@@ -116,19 +108,17 @@ func writeAccessToken(clientID string, token *AccessToken) {
 }
 
 func writeTokenCache(cache map[string]*AccessToken) {
-	dname, err := cacheDir()
+	fname, err := cachePath()
 	if err != nil {
-		fmt.Println(errors.Wrapf(err, "failed to find token directory"))
-	} else {
-		err = os.MkdirAll(dname, 0775)
-		if err != nil {
-			fmt.Println(errors.Wrapf(err, "failed to create token directory"))
-		}
+		return
 	}
-	fname, err := cacheName()
+
+	dirName := filepath.Dir(fname)
+	err = os.MkdirAll(dirName, 0775)
 	if err != nil {
-		return
+		fmt.Println(errors.Wrapf(err, "failed to create token directory"))
 	}
+
 	f, err := os.OpenFile(fname, os.O_WRONLY|os.O_CREATE|os.O_TRUNC, 0644)
 	if err != nil {
 		fmt.Println(errors.Wrapf(err, "failed to open token file"))