You won’t see this sign when driving down Interstate 24 in Tennessee or Kentucky, but many of the drivers around you have no insurance or the bare minimum insurance. If you want to protect your family from a careless automobile driver, then read on.
Every day I see people who are injured and cannot get compensated for their injuries. Why? Because the at-fault driver that injured my client is underinsured, or has no insurance at all.
We know an uninsured driver has no insurance at all, but what is an underinsured driver? An underinsured driver is someone who has automobile insurance, but the insurance is not enough. For example, let’s say you are injured in a car crash, and you discover the at-fault driver has an automobile insurance policy equal to the bare minimum required by law. The minimum amount of liability insurance required by law in Tennessee and Kentucky is $25,000. Let’s say your medical bills exceed $75,000. Unless the at-fault driver is wealthy, you can recover the at-fault driver’s $25,000 insurance limit, but generally, you will not recover a penny more from the at-fault driver who is likely to take bankruptcy if you go after the at-fault driver’s personal assets.
Underinsured motorist coverage for bodily injuries is a specific category of automobile insurance that you buy to protect you and your family from an at-fault driver with the bare minimum insurance limit of $25,000.
You can do a quick check-up on your automobile policy to determine how much underinsured motor coverage is listed on your policy. Find your declaration page to your insurance policy. The declaration page shows what you bought and paid for, and how much insurance coverage your money purchased for you. I strongly recommend purchasing no less than $100,000 of underinsured motorist coverage. Purchase at least $50,000 in underinsured motorist coverage if that is what your budget allows, but make the purchase. Of course, discuss your insurance needs with a trusted insurance agent before making your purchasing decisions to see how much underinsured motorist coverage is right for you and your family.
Let me show you why underinsured motorist coverage makes a difference when you need it. Let’s say you purchased $100,000 in underinsured motorist coverage. Under Kentucky law, your $100,000 in undersinsured coverage stacks on top of the $25,000 in minimum liability coverage from the at-fault driver, giving you a total of $125,000 in insurace to pay against your damages. In Tennessee, underinsured motorist coverage does not stack on top of the at-fault driver’s coverage. In Tennessee, the liability coverage amount is subtracted from the underinsured motorist coverage amount you purchased, giving you a total of $100,000 in available insurance to pay against your damages.
Call me if you have questions, or need help understanding the coverages under your policy. Underinsured motorist coverage can make a huge difference in protecting you and your family. Click Here To Schedule Your Free Consultation