Chattanooga, Tennessee
When at-fault drivers lack adequate coverage, you deserve experienced representation to fight for the compensation you're owed. We handle UM/UIM claims and protect your rights every step of the way.
Roughly 20% of Tennessee drivers have no auto insurance at all. One in five. And the ones who do carry insurance? Most carry the state minimum of $25,000 per person - which barely covers an emergency room visit, let alone surgery, rehabilitation, lost wages, and long-term treatment.
Here's what you need to know: Tennessee's minimum bodily injury liability coverage is $25,000 per person. The average cost of a hospital stay in Tennessee exceeds $15,000 per day. A single broken bone requiring surgery runs $30,000 to $80,000. A traumatic brain injury can generate $500,000 or more in medical bills over a lifetime. Even a "moderate" car accident with a few months of physical therapy can exceed $25,000 in total damages when you factor in medical bills, lost wages, and pain and suffering.
So when a driver carrying the state minimum hits you and causes $100,000 in damages, their insurance pays $25,000. Who covers the other $75,000? That's where uninsured motorist (UM) and underinsured motorist (UIM) coverage comes in - and where things get complicated, because now you're filing a claim against your own insurance company.
This means the company you've been paying premiums to is now responsible for paying your claim. Having an experienced attorney on your side ensures your insurer treats your claim fairly and pays you the full amount you deserve.
UM/UIM claims work differently than standard car accident claims. When you file a claim against another driver's insurance, that company evaluates the claim independently. But when you file a UM or UIM claim, you're filing against your own insurer, which changes the dynamic of the claims process.
In a normal third-party claim, the at-fault driver's insurance pays. In a UM/UIM claim, your insurer is responsible for paying. Because insurance companies are focused on managing costs, UM/UIM claims often require experienced legal representation to ensure you receive the full compensation you deserve.
Common challenges policyholders face with UM/UIM claims include:
Your insurer has a duty of good faith and fair dealing under Tennessee law. If they act in bad faith - unreasonably denying or delaying a valid claim - you may have additional legal remedies beyond the policy limits. An experienced attorney can help document the claims process and protect your rights from the very beginning, giving you the best chance at a full recovery.
If you live near the Tennessee-Georgia state line - and if you're in Chattanooga, you live minutes from it - the difference between these two states' UM/UIM rules can mean tens of thousands of dollars in your pocket. This is especially critical for accidents on the I-75 corridor, I-24 near the state line, or US-27 heading into North Georgia.
Assume you have $50,000 in total damages, $25,000 in UM/UIM coverage, and the at-fault driver has $25,000 in liability coverage:
| Factor | Tennessee (Reduce-By/Offset) | Georgia (Add-On) |
|---|---|---|
| Your Total Damages | $50,000 | $50,000 |
| At-Fault Driver's Payment | $25,000 | $25,000 |
| Your UM/UIM Coverage | $25,000 | $25,000 |
| How UM/UIM Applies | $25,000 UM minus $25,000 offset = $0 from UM | $25,000 UM added on top = $25,000 from UM |
| Total Recovery | $25,000 | $50,000 |
| Uncompensated Damages | $25,000 out of pocket | Fully compensated |
This is important to understand. In Tennessee, if your UM coverage equals the at-fault driver's liability coverage, your UM pays you nothing. The at-fault driver's $25,000 completely offsets your $25,000 UM coverage. You end up $25,000 short on a $50,000 claim. In Georgia, you'd collect the full $50,000.
This is why UM/UIM coverage amounts matter enormously in Tennessee. If you carry only $25,000 in UM/UIM (matching the state minimum liability requirement), your UIM coverage is essentially worthless against any driver who carries the minimum. You need UM/UIM limits significantly higher than the minimum liability limits to get meaningful protection under Tennessee's reduce-by rule.
Which state's law applies? Generally, the law of the state where the accident occurred controls. If you're a Tennessee resident hit in Georgia, Georgia's add-on rule may apply, giving you substantially more recovery. If the accident happens in Tennessee, you're stuck with the reduce-by rule. For accidents right on the state line - and there are plenty on I-75 near the Ringgold/East Ridge corridor - the exact location matters. We analyze which state's law provides the best recovery for our clients.
Stacking is the ability to combine UM/UIM coverage from multiple sources to increase your total available coverage. If you have two cars on your policy, each with $50,000 in UM coverage, stacking would let you access $100,000 total instead of just $50,000.
Tennessee law allows insurers to include anti-stacking provisions in their policies, and virtually all of them do. This means most Tennessee auto policies limit your UM/UIM recovery to the coverage on a single vehicle, regardless of how many vehicles you insure.
Where stacking may still apply:
Identifying all available sources of UM/UIM coverage requires a careful review of every auto policy in your household. We review policy declarations, endorsements, and anti-stacking clauses to determine the maximum coverage available. Sometimes clients have significantly more coverage than they realize.
The UM/UIM claim process shares similarities with a third-party injury claim, but there are critical differences because you're dealing with your own insurer. Here's what to expect:
Notify your insurance company promptly after the accident. Your policy likely requires timely notice as a condition of coverage. Report that the at-fault driver is uninsured or underinsured. Do not give a detailed recorded statement at this stage - simply report the accident occurred, provide basic facts, and tell them you'll provide documentation. Consider consulting with an attorney before providing any recorded statements to protect your rights.
Gather police reports, photos of the accident scene, witness information, and the at-fault driver's insurance details (or lack thereof). Begin medical treatment immediately and keep every receipt, bill, and record. Document lost work time, how injuries affect daily activities, and any out-of-pocket expenses. The more documentation you have, the harder it is for your insurer to minimize your claim.
Review your policy declarations to understand your UM/UIM limits. Check for anti-stacking clauses, and identify any other policies in your household that might provide additional coverage. If the at-fault driver has some insurance (making this a UIM rather than UM claim), determine their limits and how Tennessee's reduce-by rule affects your recovery. This is where an attorney adds the most value - most people don't fully understand their coverage.
Do not attempt to settle your UM/UIM claim until you've reached maximum medical improvement. Your insurer may push for early resolution, but settling before you know the full extent of your injuries almost always means leaving money on the table. Follow your doctor's treatment plan, attend all appointments, and don't skip physical therapy. Gaps in treatment give your insurer ammunition to argue your injuries aren't serious.
Prepare a comprehensive demand package including all medical records and bills, lost wage documentation, and a demand letter detailing liability, injuries, and damages. Your insurer will assign a claims adjuster who will review everything and likely request additional documentation. They may send you to an independent medical examination (IME) with their chosen doctor. Having an attorney can help ensure the IME process is fair and that the results accurately reflect your injuries.
Your insurer will respond with an offer, usually well below your demand. Negotiate with documentation and comparable case values. If negotiations stall, most UM/UIM policies require arbitration rather than a lawsuit, though some permit either. Arbitration involves a neutral third party (or panel) who hears both sides and makes a binding decision. If your policy allows litigation, you can file suit against your own insurer. Tennessee courts have upheld policyholders' rights to sue their own insurers for UM/UIM benefits.
UM/UIM claims involve unique legal and insurance complexities that can significantly impact your recovery. Having an experienced attorney on your side ensures your rights are protected and you receive the full compensation you deserve.
We work on contingency for UM/UIM claims, just like any other personal injury case. Burd Law Firm charges a flat 1/3 (33.33%) contingency fee regardless of whether litigation is required (appeals notwithstanding). You pay nothing unless we recover money for you. Call us today for a free consultation to discuss your case and learn how we can help you get the compensation you deserve.
Uninsured motorist (UM) coverage pays when the at-fault driver has no liability insurance at all. Underinsured motorist (UIM) coverage pays when the at-fault driver has insurance, but not enough to cover your damages. For example, if you have $100,000 in damages and the at-fault driver only has $25,000 in coverage, your UIM coverage can make up the difference, subject to Tennessee's reduce-by rule. Tennessee requires insurers to offer UM/UIM coverage, but you can reject it in writing. Both UM and UIM claims are filed against your own insurance company, not the other driver's insurer.
Tennessee requires minimum liability coverage of $25,000 per person and $50,000 per accident for bodily injury, plus $15,000 for property damage (25/50/15). These minimums are dangerously low. A single night in a hospital can exceed $25,000, and a serious injury with surgery easily reaches $100,000 or more. When you're hit by a driver carrying only minimum coverage, you're likely underinsured even if they have insurance. This is why UM/UIM coverage is critical - it fills the gap between what the at-fault driver can pay and what your damages actually are.
Tennessee law generally allows insurance companies to include anti-stacking provisions in their policies, and most do. Stacking means combining UM/UIM coverage from multiple vehicles on one policy or from multiple policies. For example, if you have two cars each with $50,000 UM coverage, stacking would give you $100,000 total. Most Tennessee policies include anti-stacking clauses that limit you to one vehicle's coverage amount. However, coverage from separate policies with different insurers may stack. Review your policy declarations carefully or have an attorney review them to determine your actual available coverage.
The biggest difference is the reduce-by rule vs. add-on rule. Tennessee uses a reduce-by (offset) approach: your UIM coverage is reduced by whatever the at-fault driver's insurance pays. If you have $50,000 UIM and the at-fault driver has $25,000, you collect $25,000 from them and only $25,000 from your UIM - totaling $50,000. Georgia uses an add-on approach: your UM/UIM coverage stacks on top of what the at-fault driver pays. Same scenario in Georgia, you'd collect $25,000 from them plus $50,000 from your UM - totaling $75,000. This matters enormously for accidents near the state line on I-75 or I-24.
Legally, filing a UM/UIM claim should not raise your rates because you were not at fault. Tennessee law prohibits insurers from surcharging policyholders for not-at-fault claims. In practice, some insurers may increase premiums at renewal, citing overall risk factors. If your rates increase after filing a UM claim, you should shop other carriers. The important thing is that you paid for UM/UIM coverage specifically for situations like this. Not using coverage you paid for because you're worried about rate increases is like not using your health insurance because you're worried your premiums might go up. Use what you paid for.
Tennessee law requires your insurer to offer UM/UIM coverage, but you can reject it in writing. If you signed a valid written rejection, you likely have no UM/UIM coverage. However, rejections must meet specific legal requirements. The insurer must have made a meaningful offer with adequate explanation, and the rejection must be signed by the named insured. If the insurer cannot produce a properly executed rejection form, you may have UM/UIM coverage by operation of law. We review rejection forms carefully because insurers sometimes fail to follow proper procedures, which means you may have coverage you didn't know about.
Tennessee's statute of limitations for personal injury is one year from the date of the accident. This applies to UM/UIM claims as well. However, your insurance policy may have its own notice requirements that are shorter - many policies require "prompt" or "timely" notice of the claim. Failing to notify your insurer promptly can give them grounds to deny coverage, even if you're within the statute of limitations. Contact your insurance company and an attorney as soon as possible after the accident. Do not wait months thinking your injuries will resolve on their own.
Yes, you can pursue both. You can sue the uninsured or underinsured driver directly for damages AND file a UM/UIM claim with your own insurer. However, you cannot collect twice for the same damages - any recovery from the at-fault driver reduces your UM/UIM recovery. In practice, suing an uninsured driver is often pointless because they typically have no assets to collect. That's the whole reason you have UM coverage. For underinsured drivers, you collect their policy limits first, then pursue your UIM coverage for the remaining damages. Your insurer has a right of subrogation, meaning they can seek reimbursement from the at-fault driver for what they pay you.
Results may vary. Past results do not guarantee future outcomes. This is not legal advice. Each UM/UIM claim is unique and results depend on specific policy language, coverage limits, applicable state law, injury severity, and other factors. The information on this page is for educational purposes only and does not create an attorney-client relationship.
UM/UIM claims require experienced legal representation. We understand insurance policy language, Tennessee's reduce-by rule, and how to maximize your recovery when coverage is limited. No fee unless we win.
Call us directly:
(423) 777-6116Or schedule your free, no-obligation consultation online:
Free case evaluation. Flat 1/3 (33.33%) contingency fee regardless of whether litigation is required (appeals notwithstanding). You pay nothing unless we recover money for you. Licensed in Tennessee, Alabama, and Georgia.
The Burd Law Firm handles uninsured and underinsured motorist claims throughout the Chattanooga metropolitan area, Hamilton County, and the North Georgia border region. Our location near the Tennessee-Georgia state line gives us particular expertise in cross-border UM/UIM issues and choice-of-law questions that arise from I-75, I-24, and I-59 corridor accidents.
Areas We Serve: Chattanooga, Hixson, Signal Mountain, Red Bank, Soddy-Daisy, East Ridge, Lookout Mountain, Ringgold GA, Fort Oglethorpe GA, and Catoosa County GA.
Office Location:
412 Georgia Ave Suite 102
Chattanooga, TN 37403
Office Hours:
Monday - Friday: 9:00 AM - 5:00 PM
Evening and weekend appointments available by request
Licensed to practice in Tennessee, Alabama, and Georgia. We can evaluate UM/UIM claims under any of these states' laws and determine which state's rules provide the best recovery for your situation.
Important: Tennessee has a 1-year statute of limitations for personal injury claims, including UM/UIM claims. Your policy may also require prompt notice to your insurer. Contact us as soon as possible after an accident with an uninsured or underinsured driver to preserve your rights and ensure you meet all deadlines.