Uninsured motorist: Will an accident affect your insurance?

Getting into an accident is stressful. It can be even more stressful when the other person involved does not have car insurance or does not have enough insurance. This is known as an uninsured/underinsured driver. These drivers are the reason why so many insurance-carrying drivers also have this type of coverage written into their auto insurance policies.

The fact of the matter here is that if your policy does not include a section for underinsured/uninsured motorist and you get into an accident with such a driver, your policy will not cover the claim. You can file the claim with your carrier, but it will almost always be denied if you don’t have the coverage in place.

It is illegal for an insurance company to increase the premium on your coverage if you were not the at-fault driver in the accident. So, if you are involved in an accident with an underinsured/uninsured driver and he or she was the cause of the accident, your premium will not increase. The downside of this is that if you were the cause of the accident, it will not matter if the other driver didn’t have insurance. Your premiums can increase.

It’s best to avoid filing a claim if you do not have coverage for underinsured/uninsured motorists. By filing a claim, you are notifying the insurance company of your accident. If you caused the accident, the company now knows about it and can raise your rates.

An accident involving an uninsured or underinsured motorist in Tennessee can wreak havoc on your stress levels. You likely don’t know if your policy will be able to handle such a claim. You might also start worrying that your policy premium will increase. It’s best to ask these questions of your broker prior to signing your next auto insurance policy.