The following information on automobile insurance comes from Pete Olson Law.
We all know we need automobile insurance. It is not until after you have a loss that you then learn what coverage you needed. My car crash clients often mention the words “full coverage.”
“Full coverage” refers to the types of coverage provided in an automobile insurance policy. Liability coverage pays someone else if you are at fault. Casualty coverage pays you for a loss resulting from an act of nature or if no one is at fault. Med Pay coverage provides limited money to pay for medical expenses regardless of fault. There can be property, towing and rental coverage. However, the most important coverage to protect you and your family is uninsured motorist coverage.
Uninsured motorists also present a liability to Tennessee drivers. The Insurance Information Institute estimates roughly 20 percent of Tennessee motorists are uninsured, even though state law requires a minimum car insurance.
A crash resulting in a single trip to the emergency room can cause a person to go bankrupt from unexpected medical debts. If someone crashes and injures you, and they uninsured or under-insured, you are still responsible for the medical debts. One of the good Tennessee Consumer Insurance laws requires standard automobile policies offer Uninsured motorist coverage. Uninsured coverage protects you, the policy holder, in the event another motorist is at fault, but is uninsured.
Tennessee only requires minimum policy limits of $25,000 dollars. Serious and catastrophic injuries cause losses that amount to more than any minimal limit policy can cover. You can purchase higher uninsured motorist policy limits up to one million dollars, to cover you or your loved ones should that horrible loss ever occur.
The additional monthly premium for the uninsured/under-insured coverage is nominal, usually being a couple of dollars a month. The coverage must be offered with any automobile policy, unless you sign specific documents excluding the coverage. DO NOT EXCLUDE THE COVERAGE. If your insurance agent offers to save you a couple of dollars by excluding the Uninsured motorist coverage, say no, and go to a different agent. The cost is minimal, the benefit is great.