Car Accidents Happen: Why Uninsured/Underinsured is Essential for Your Protection
As if learning that an employee was involved in an accident on company time isn’t alarming enough, what happens when you find out that the at-fault driver doesn’t have coverage or is underinsured? While most states require drivers to maintain auto insurance, according to a recent study by the Insurance Research Council one in eight motorists remain uninsured!
Whether it’s a minor fender-bender or a serious collision, accidents can lead to costly repairs, medical bills, and potential legal liabilities. In Tennessee, like the rest of the country, auto insurance is not only a smart choice but a legal requirement.
Coverage overview:
Tennessee’s roads see thousands of car accidents every year. In the event a driver or passengers are injured due to the negligence of an uninsured or underinsured driver, you may seek compensation for injuries and damages through the UM and UIM portions of your policy, depending on whether they have a lack of insurance or don’t have enough insurance. But firs:
It must be established that the other driver was at fault. Comparative negligence allows for more than one person to be at fault for an accident. As a result, your company can reduce the settlement of your uninsured/underinsured motorist claim by the % of fault attributable to you.
UM coverage pays losses up to the coverage limits from an accident caused by a hit and run driver, but be sure to report the accident promptly and always inform the police.
Coverage limits
A best practice for UM/UIM is to set the limits equal to your commercial auto body injury and property damage limits. Since UM and UIM coverage protects you, adequate limits are critical
RISE Insurance understands state automobile policy coverage requirements and will work with you to ensure you have the right coverages and limits in place that minimize your uninsured or underinsured exposures on the road. Contact us.
