(800) 253-1482Do You Need Uninsured Motorist Coverage in Tennessee?
Summary: Tennessee has one of the highest rates of uninsured drivers in the U.S., with over 23% lacking coverage, leaving drivers vulnerable to financial losses. Uninsured/underinsured motorist (UM/UIM) coverage protects against medical bills and vehicle repair costs after accidents with drivers who don't have enough coverage or auto insurance at all. UM coverage includes bodily injury and property damage, while UIM coverage bridges the gap when the at-fault driver’s insurance is insufficient. Though optional, UM/UIM coverage offers vital financial protection, especially with the challenges of hit-and-runs and legal battles. Tennessee generally prohibits stacking UM coverage, limiting recovery to the policy with the highest limits in an accident, but by comparing carriers, drivers can find the right amount of protection and save on premiums. Estimated Read Time: 4 mins
In Tennessee, uninsured/underinsured motorist (UM/UIM) coverage might not be mandatory, however, virtually all drivers need this protection, and for good reason.
Unfortunately, not everyone upholds their financial responsibility, and Tennessee has one of the highest rates of uninsured drivers in the nation, with 23.7% of drivers uninsured—that’s the third-highest in the nation!
This increases the risk of being involved in an accident with someone who lacks adequate coverage, leaving you stuck with expensive medical and repair costs.
In a state with a high percentage of uninsured drivers, having the right coverage offers both financial security and peace of mind on the road.
What Is Uninsured Motorist Coverage in Tennessee?
Uninsured motorist (UM) coverage protects you if you're in an accident caused by a driver without auto insurance or with too little coverage to pay for your losses.
This coverage is available in several forms, each designed to address different types of expenses, primarily focusing on bodily injury or property damage.
Uninsured motorist bodily injury (UMBI) covers medical bills for you and your passengers if an uninsured driver hits you.
Uninsured motorist property damage (UMPD) covers the repair costs for your vehicle if an uninsured driver causes an accident, including in hit-and-run cases.
Underinsured motorist bodily injury (UIMBI) kicks in when the at-fault driver has insurance but not enough to cover your medical bills and those of your passengers.
Finally, underinsured motorist property damage (UIMPD) covers the remaining repair costs for your vehicle if the other driver lacks adequate coverage.
Keep in mind that UMPD and UIMPD may require you to pay a deductible, while UMBI and UIMBI coverage typically do not.
Again, while these coverages are optional, they can provide valuable extra protection in the event of an accident.
How Much Uninsured Motorist Coverage Do You Need in Tennessee?
Choosing the minimum uninsured/underinsured motorist coverage may save you money on premiums, but it can leave you vulnerable to more severe accidents.
When dealing with underinsured drivers, the claims process can become complicated, leading to long and expensive legal battles.
You may have to take them to court to recover damages, which adds stress and further expenses.
Hit-and-run accidents pose even more challenges since there's no guarantee you'll find the responsible driver.
If you're unable to locate them, the legal process to recover damages becomes more difficult and costly.
Drivers without proper coverage often don’t have the means to pay for their losses, even after going through legal proceedings.
To avoid these financial pitfalls, it’s important to assess your risks and choose coverage that protects you in these situations.
Sufficient UI/UIM coverage helps you avoid paying large repair bills, legal fees, and medical costs out of pocket.
By opting for higher coverage limits, you protect yourself in case of a serious accident by balancing affordable premiums with coverage that ensures you’re not left vulnerable to financial hardship.
How Uninsured Motorist Coverage Covers Drivers in TN
Uninsured/underinsured motorist coverage provides crucial protection if you're involved in a hit-and-run or an accident with a driver who doesn't have enough insurance to cover your losses.
If you find yourself in such a situation, UM/UIM coverage ensures you're not left paying for damages out of pocket, allowing you to move on sooner.
To file a claim, you'll need to pay your deductible, but once your insurance company has reviewed the details and completed their due diligence, you'll receive compensation for your damages.
For a smooth claims experience, maintain proper documentation and stay in touch with your insurance agent throughout the process.
Your coverage provides extra financial security when dealing with uninsured or underinsured drivers.
Uninsured Motorist Stacked vs Unstacked and Tennessee Law
Stacked uninsured/underinsured motorist coverage boosts your protection by combining the coverage limits from multiple vehicles.
You can stack coverage in two ways: vertically within one policy or horizontally across different policies.
When you stack coverage and submit a claim, your auto insurance carrier could pay more, providing greater financial security.
With stacking, your coverage limits increase based on the number of vehicles covered, ensuring enhanced protection if you're ever in an accident by offering more benefits.
For example, if you insure two cars with 25/50 limits (up to $25,000 per person and $50,000 per accident), stacking would double your coverage to 50/100. With three cars, it could go up to 75/150, giving you significantly more protection without having to increase individual policy limits.
However, Tennessee generally does not permit stacking of UM coverage, as confirmed by U.S. District Court rulings.
If multiple policies are involved in the same accident, the policy with the highest UM coverage sets the maximum recovery limit.
Furthermore, this stacking restriction even applies to out-of-state policies that might otherwise allow it.
There may still be rare exceptions where horizontal stacking is possible, but these depend on specific policy language, your insurance company, and sometimes legal interpretation.
In any case, unstacked UM/UIM coverage is typically less expensive than stacked coverage, providing essential protection while keeping premiums lower.
Get a Quote on Uninsured Motorist Coverage in Tennessee
Dealing with an uninsured motorist is stressful, but your auto insurance should make the process easier and more affordable.
Freedom Insurance Group partners with top-rated insurers in Tennessee to provide personalized coverage while saving you money.
To see how we help drivers save up to 40% on uninsured motorist coverage, get a free quote using our online tool below or ask an agent today.
