In the state of Tennessee it is a requirement to maintain a minimum amount automobile liability insurance. These laws are to protect others in the event a driver is in an at-fault accident that causes personal injury or property damage to another. But as we all know, not everyone abides by the law. It should also be noted that the state minimum coverage for liability insurance shall be no less than $25,000.00 of coverage per individual and $50,000.00 for all individuals in the vehicle, which is often not adequate coverage. It is highly likely that $25,000.00 will not cover medical expenses for the injured individual in the event of a serious auto accident. Many people donand#146;t realize that not carrying adequate uninsured motorist coverage can lead financial tragedy, even if they are not at fault.
Example of a situation involving an uninsured motorist:
Driver-1, which does not have any auto insurance, is driving home from a late night at work when his vehicle collides into responsible Driver-2and#146;s vehicle. Driver-2 has state basic liability insurance, but had declined Uninsured Motorist (UM) coverage when his insurance agent offered it. The property damage to Driver-2and#146;s vehicle is over $15,000.00, his medical bills are $25,000.00, and he is out of work for over 2-weeks. Since Driver-2 did not have any uninsured motorist coverage, he is stuck with over $25,000.00 in bills, no vehicle, and loss of 2 weeks of income. If Driver-1 was not responsible enough to have auto insurance it is very unlikely that he will help with Driver-2and#146;s bills.
Example of a situation involving an under-insured driver:
Driver-1, who carries the state minimum $25,000/$50,000 coverage hits driver-2 and his family of four and sends all of them to the hospital with injuries. Driver-2and#146;s familyand#146;s medical bills total over $100,000.00 and loss of earnings of over $15,000.00. This means that Driver-2and#146;s family will only receive $50,000.00 from Driver-1and#146;s insurance company and will be left to pay the remaining $90,000.00 himself. Of course Driver-2 can attempt to go after Driver-1 in court for the remaining expense, but what if Driver-1 does not have the money?
The cost of the coverage is much less than most realize. Typically the UM limits are set to match the normal bodily injury and property damage limits and cost only a fraction of the normal liability insurance. Luckily the state of Tennessee requires motorist to sign a rejection form when deciding not to purchase uninsured motorist coverage or purchasing UM coverage less than their BI/PD limits. However; many drivers still take make the decision to deny this coverage in order to lower their cost of insurance.
Driving without uninsured motorist (UM) coverage can be extremely risky. Statistics indicate that number of uninsured drivers is on the rise! According to the Insurance Research Council, chances are 1 in 7 that the at-fault driver is uninsured in an auto accident. Over 22% of drivers on the road in the state of Tennessee are without automobile insurance!
Be responsible and protect yourself and the ones you love! Make sure you maintain adequate uninsured motorist coverage! Click Here to obtain a free Knoxville Auto Insurance Quote today. Add a Comment Back to All Articles
