Tennessee Does Not Require Underinsured Motorist Coverage
Tennessee does not mandate underinsured motorist (UIM) coverage or uninsured motorist (UM) coverage on your auto policy. Carriers must offer both, and you may decline them in writing, but the state does not require you to carry either. This puts Tennessee in the minority—most states mandate UM coverage at minimum, and several require UIM as well.
The structural reality: 21.3% of Tennessee motorists are uninsured, the highest rate in the nation as of 2023. When you add a second or third vehicle to your policy, every car and every driver on that policy shares the same UM/UIM election. Declining coverage to lower premium exposes your entire household when an at-fault driver carries Tennessee's minimum $25,000 bodily injury limit and your medical bills exceed that amount.
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Get Your Free QuoteTennessee Uninsured Motorist Rate
21.3%
Tennessee's uninsured motorist rate is the highest in the United States as of 2023. One in five drivers on Tennessee roads carries no liability insurance, and many others carry only the state minimum $25,000 per person limit.
Insurance Information Institute, 2023
What Underinsured Motorist Coverage Actually Pays
Underinsured motorist coverage pays the difference between the at-fault driver's liability limit and your actual loss when their limit is insufficient. Tennessee's minimum bodily injury liability is $25,000 per person and $50,000 per accident.
Uninsured motorist coverage pays when the at-fault driver carries no insurance at all, or when you are hit by a driver who flees the scene and cannot be identified. UM and UIM are separate coverages, but Tennessee carriers typically sell them together as a combined UM/UIM endorsement. When you decline one, you decline both.
UM/UIM applies per person and per accident, mirroring the structure of liability coverage. On a multi-car policy, every vehicle and every driver listed on the policy is covered under the same UM/UIM limit you select.
Declining UM/UIM on a multi-car policy exposes every vehicle and driver on that policy when an at-fault driver's limit is exhausted. You cannot elect coverage for one vehicle and decline it for another.
How UM/UIM Works Across Multiple Vehicles
You do not multiply the limit by the number of vehicles—the policy limit is the policy limit, regardless of how many cars you insure.
This structure creates a household-wide exposure when you decline coverage. Tennessee's 21.3% uninsured rate and $25,000 minimum liability limit make this a high-frequency, high-severity risk for multi-car households.
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Tennessee Minimum Limits and the Coverage Gap
These are among the lowest minimums in the country. A driver carrying minimum limits who causes a serious injury accident exhausts their $25,000 per-person limit quickly—emergency room treatment, imaging, surgery, and follow-up care for a moderate injury routinely exceed $25,000.
When the at-fault driver's limit is exhausted, your options without UM/UIM are limited. You can sue the at-fault driver personally, but most drivers carrying minimum limits have few recoverable assets. You can file a claim under your own health insurance, but health insurance does not cover vehicle damage, lost wages, or pain and suffering. You can pay out of pocket. UM/UIM eliminates this gap by paying the difference between the at-fault driver's limit and your actual loss, up to your UM/UIM policy limit.
Property damage underinsured motorist coverage (UMPD) is less common but available from some Tennessee carriers. On a multi-car policy, UMPD covers damage to any vehicle listed on the policy when an underinsured driver is at fault.
Tennessee Minimum Bodily Injury Limit
$25,000
Tennessee's minimum bodily injury liability limit is $25,000 per person and $50,000 per accident. A driver carrying minimum limits who causes a serious injury exhausts this limit quickly, leaving the injured party to cover the remainder.
Tennessee Code Annotated § 55-12-139
Selecting UM/UIM Limits for a Multi-Car Household
Tennessee carriers offer UM/UIM limits equal to or lower than your liability limits. You cannot select UM/UIM higher than your liability limit.
For households insuring multiple vehicles, the UM/UIM limit should reflect the household's total exposure, not the value of a single car. A two-car household with two drivers faces twice the probability of an accident involving an uninsured or underinsured driver compared to a single-car household.
Compare Carriers and Add UM/UIM to Your Policy
Tennessee's optional UM/UIM status means you must affirmatively select coverage when you build or renew your policy. Carriers writing in Tennessee include State Farm, GEICO, Progressive, Allstate, Farmers, Nationwide, and others. Not all carriers price UM/UIM identically—some charge a flat per-vehicle fee, others calculate it as a percentage of your liability premium. When you insure multiple vehicles, the pricing structure matters.
Request quotes with UM/UIM limits matching your liability limits from at least three carriers. Compare the total premium for all vehicles on the policy, not the per-vehicle cost. A carrier offering a lower base rate but higher UM/UIM fee may still deliver a lower total premium than a carrier with a higher base rate and lower UM/UIM fee. Tennessee's high uninsured rate and low minimum limits make UM/UIM one of the highest-value coverages you can add to a multi-car policy.