Tennessee Injury Law Center
Let’s start with who is officially Gen Z. Individuals born between 1997 and 2012 are considered Gen Z. The adult members of Gen Z range from 18 years old to 27 years old. .
As these Gen Z adults leave the nest (hopefully) and make their way into the world, they need to understand terms like “deductible”, but only 27% of them do. Specifically, as to auto insurance, 22% of Gen Z adults have “little or no awareness” of the importance of auto insurance”. This is especially frightening because this age group also happens to be the most likely to be in an auto accident. Read on for one of the most important auto insurance tips for everyone, not just Gen Z.
Several different types of auto insurance are available for Tennessee drivers. Below is a brief description of each type:
- Liability Insurance – this type of insurance pays for property damage and personal injury that you cause while operating a motor vehicle. To legally operate a vehicle in the State of Tennessee, you must have liability insurance.
- Medical Payments Coverage – this pays medical expenses for you and any passengers regardless of fault. The maximum payout is typically $5,000. This coverage is optional in the State of Tennessee.
- Collision Coverage – this coverage pays to replace or repair your vehicle regardless of who was at fault for the accident. Collision coverage is not required by law but if you are financing or leasing your vehicle then it usually is mandatory pursuant to the terms of your financing or lease contract.
- Comprehensive Coverage– this coverage pays to replace your car if it is stolen or it will repair or replace your car if it is damaged in a manner other than a car accident. For example, if your car is damaged or destroyed by a flood or fire or a falling tree, comprehensive coverage protects your investment. Like collision coverage, comprehensive coverage is not required by law but is commonly required if you are financing or leasing your vehicle.
- Umbrella Policy – This type of policy provides additional coverage above and beyond what is provided by your automobile liability policy. This type of coverage is usually purchased by individuals with assets that exceed the amount of their auto policy.
Now, let’s talk about the one type of auto insurance coverage that too many drivers do not understand regardless of whether they are Gen Z, a Millennial, Gen X, etc. We are talking about Uninsured/Underinsured Motorist Coverage. Some drivers think this is insurance that is purchased to protect someone who does not have insurance in the event of an accident with that person. In fact, it is exactly the opposite. Uninsured motorist and underinsured motorist are for YOU, in the event you get hit by someone without insurance or without enough insurance to compensate you for your losses.
Lots of folks, not just Gen Z, think that they don’t need UM/UIM coverage if they have collision and health insurance or med-pay coverage. Sure, collision coverage will repair or replace your car and health insurance may cover the majority of your medical bills but neither of these types of insurance will help you if you miss time from work, if you suffer a permanent disability, etc. They will not compensate you for your pain and suffering or if you are rendered a paraplegic in an accident. Those coverages do not compensate you for out-of-pocket expenses like someone to mow your yard because the injuries you sustained in the accident prohibit you from doing so, etc.
In short, you need UM/UIM coverage because roughly 25% of the drivers on Tennessee roads do not have any insurance. Zero. And way too many drivers only have the legal minimum, which has not been raised in decades and is insufficient to fairly compensate involved in a serious accident. By purchasing UM/UIM coverage, you protect yourself and your family in the event of an accident with a driver who does not have any insurance or who does not have enough to pay for the harm they caused. UM/UIM coverage is surprisingly affordable. Gen Z and every other generation should have it.
As always, we are here if you need us. Our award-winning lawyers handle all accident cases on a contingency basis so we only get paid if we win. If you have questions regarding an accident, give us a call. We would love to help.
Nashville: 615-669-3993
Murfreesboro: 615-867-9900
Brentwood: 615-742-4880