Uninsured and Underinsured Motorist Coverage: What Every Tennessee Driver Should Know

Here's a number that should stop every Tennessee driver in their tracks: roughly 23% of drivers in Tennessee are uninsured. That's nearly one in four cars on the road with no insurance behind the wheel. So if someone runs a light and totals your car, there's a real chance they can't pay for a dime of it. That's exactly the gap uninsured motorist coverage in Tennessee is built to close, and it's one of the most important and most overlooked coverages on your auto policy.

Here's what it is, how it works, and why nearly every Tennessee driver should carry it.

The Two Coverages: UM and UIM

Uninsured and underinsured motorist coverage are two closely related protections that step in when the other driver is at fault but can't cover your losses.

• Uninsured motorist (UM) applies when the at-fault driver has no insurance at all, or in a hit-and-run where the driver takes off and can't be identified. Their nonexistent policy pays nothing, so your UM coverage steps in.
• Underinsured motorist (UIM) applies when the at-fault driver has insurance, but not enough to cover your injuries and damages. Since Tennessee only requires low minimum liability limits, this happens more than you'd think. If their policy tops out at $25,000 and your medical bills are $80,000, UIM covers the difference up to your limit.

Put simply: UM is for the driver with nothing, UIM is for the driver with not enough. Both protect you when someone else causes a wreck they can't pay for.

Why This Matters So Much in Tennessee

Two facts make this coverage especially important here.

First, that 23% uninsured rate is among the highest in the country. On any given drive across Middle Tennessee, you're sharing the road with a lot of people who legally shouldn't be driving without insurance but are anyway.

Second, Tennessee's minimum liability limits are low. A driver carrying only the state minimum has just enough coverage to fall far short of a serious injury claim. So even when the at-fault driver is insured, "insured" often means "barely," and that's where underinsured motorist coverage saves you.

Without UM/UIM, if an uninsured or underinsured driver hurts you, your options are to chase them personally for money they likely don't have, or absorb the medical bills and lost wages yourself. Neither is a good place to be.

What UM/UIM Actually Covers

Depending on how your policy is set up, this coverage can help with:

• Medical bills for you and your passengers
• Lost wages if injuries keep you out of work
• Pain and suffering from the accident
• Damage to your vehicle (this piece, uninsured motorist property damage, is sometimes a separate option with its own small deductible)

In other words, it's designed to put you roughly where you'd be if the at-fault driver had carried proper insurance all along.

How It Works in Tennessee: You Have to Be Offered It

Tennessee law handles UM/UIM in a way worth understanding. Insurers are required to offer you uninsured motorist coverage equal to your bodily injury liability limits. You don't have to take it, but if you want to decline it or take lower limits, you generally have to do so in writing.

That rule exists to protect drivers, but it also means some people end up without the coverage because they signed it away to save a few dollars without fully realizing what they were giving up. If you're not sure whether you carry UM/UIM or at what limits, that's worth checking today, not after an accident.

A good rule of thumb: carry UM/UIM limits that match your liability limits. If you think enough of yourself to carry solid liability coverage to protect others, you should protect yourself just as well against the many drivers who don't.

A Note on Fault in Tennessee

Tennessee follows a modified comparative fault rule. In plain terms, you can recover damages only if you were less than 50% at fault for the accident, and whatever you recover is reduced by your share of the fault. UM/UIM claims follow the same logic: the other driver still has to be the one primarily at fault. This coverage isn't a catch-all for any accident; it's specifically there for when someone else causes the wreck and can't pay.

Frequently Asked Questions

Is uninsured motorist coverage required in Tennessee? No, it's not mandatory, but insurers are required to offer it to you at limits equal to your liability coverage. To decline it or take lower limits, you generally have to do so in writing. Given that about 23% of Tennessee drivers are uninsured, most people should keep it.

What's the difference between uninsured and underinsured motorist coverage? Uninsured motorist (UM) covers you when the at-fault driver has no insurance or flees the scene. Underinsured motorist (UIM) covers you when the at-fault driver has insurance but not enough to pay for your injuries and damages.

What happens if someone without insurance hits me in Tennessee? If you have uninsured motorist coverage, it steps in to pay for your injuries, lost wages, and often your vehicle damage, up to your limits. Without it, you'd be left trying to collect from a driver who likely can't pay, or covering the costs yourself.

Does uninsured motorist coverage pay for a hit-and-run? Yes. A hit-and-run, where the at-fault driver can't be identified, is generally treated as an uninsured motorist claim under your UM coverage.

What limits should I carry? A common recommendation is to match your UM/UIM limits to your bodily injury liability limits, so you're protected as well as the people you might accidentally harm. Your agent can help you set the right amount.

The Bottom Line

With nearly one in four drivers uninsured, uninsured motorist coverage in Tennessee isn't a nice-to-have, it's one of the smartest protections you can carry. UM covers you when the other driver has nothing, UIM covers you when they don't have enough, and together they make sure someone else's bad decision doesn't become your financial disaster. Since Tennessee lets you decline it in writing, it's worth confirming you actually have it, at limits that would really protect you.

If you're not sure what your auto policy includes, or you want to make sure your UM/UIM limits are where they should be, we're glad to take a look.

Call us at 615-773-2886 or visit hutins.com for a quick coverage review. We'll tell you exactly what you have and where you might be exposed.