By Andrew Darlington
December 31, 2025
22 min read
Hello from Johnson City, Tennessee! As we say goodbye to 2025 and welcome a new year, I've been thinking about the roads we travel—literally and figuratively. In East Tennessee, where families enjoy weekend drives to the Smokies or hauling campers to Cherokee Lake, the last thing you want is an accident derailing your plans. For higher-income households with homes, investments, and recreational "toys" like ATVs or RVs to protect, a common question arises: Why should I add Uninsured Motorist Coverage to my umbrella policy?
As the leader of Veritas Risk Management, with almost 30 of experience advising Tennessee families on comprehensive protection, I've seen how this simple addition can be a lifesaver. Umbrella policies—called Personal Catastrophe Liability (PCL) by Erie Insurance—offer that extra shield, and including UM/UIM extends it to scenarios where other drivers fall short on insurance. In Tennessee, with our mix of urban commutes and rural routes, uninsured accidents happen more than we'd like. This guide, tailored for families across the state, explores the top reasons to add it, backed by real Tennessee stories. It's not just about coverage—it's about preserving your hard-earned assets and peace of mind. If you're ready to review your family's home, auto, life, umbrella, or coverage for ATVs, campers, and RVs, Veritas has you covered with offices in Johnson City at 4451 North Roan Street and Kingsport at 419 E Market St—let's chat about strengthening your safety net.
For a broader look at umbrella basics, check out our other blogs. And if you're considering how auto coverage fits in, read 6 Types of Car Insurance Explained.
Uninsured Motorist (UM) coverage protects you if hit by a driver without insurance; Underinsured Motorist (UIM) helps when their coverage isn't enough. In Tennessee, state law requires insurers to offer UM/UIM (Tenn. Code Ann. § 56-7-1201), but you can decline—though I have never recommend it for families with assets at stake.
An umbrella policy, or Erie's PCL, sits above your primary home and auto policies, providing excess liability coverage—often $1 million or more—for big claims. Adding UM/UIM via endorsements like Erie's PCAT37 makes the PCL excess for these scenarios too. It only pays after your underlying auto UM/UIM exhausts, offering a higher layer for severe cases. For higher-net-worth Tennessee families, this means safeguarding savings from $1,000,000+ medical bills. A client in the Tri-Cities added it after buying an RV—extra assurance for family adventures where the whole family is in the car.
Link to related content: To learn about protecting recreational vehicles, see our page on Personal Auto Insurance.
Tennessee ranks high nationally with about 20% uninsured drivers, per Insurance Research Council data. UM/UIM in your PCL bridges gaps when primary limits fall short—vital for families facing $500,000+ in hospital stays from crashes. Without it, you're tapping savings or facing liens on homes.
In rural Tennessee areas like Washington County, hit-and-runs are common; PCL UM fills voids. A Johnson City family hit by an uninsured trucker had $300,000 injuries—their auto UM covered $100,000, PCL the rest, preventing financial ruin.
For higher-income Tennessee households with homes over $500,000 or investments and assets over $250,000, a major uninsured accident could wipe out net worth. PCL UM/UIM acts as a buffer, covering excess judgments that threaten assets. Tennessee allows garnishment of wages or liens on property for unpaid claims, but would someone really have that much money if they did not have high enough Auto Liability Limits to protect you? Probably not which is what makes this coverage crucial.
Consider a Memphis executive with a lake house and RV—hit by underinsured driver, $800,000 verdict. Auto UIM $250,000; PCL to $1M protected retirement funds. Without, asset sales loomed. This is why families with "toys" like campers add it—safeguards lifestyle.
UM/UIM isn't just for immediate bills; it covers ongoing rehab, therapy, or income loss from disabilities. In Tennessee, with average claim costs rising (per NAIC), PCL excess ensures funds for years-long recovery.
A Chattanooga family with teens: Uninsured driver caused spinal injury, $600,000 lifetime care. Auto UM $250,000; PCL covered excess, allowing home modifications without dipping into college savings. For higher-net-worth parents, this maintains family stability.
Tennessee families love outdoor fun—ATVs on trails, campers at state parks, RVs to Dollywood. PCL UM/UIM extends to these if underlying covers, providing peace amid higher accident risks. Erie's PCAT5 miscellaneous vehicles endorsement requires underlying, but PCL boosts limits.
A Kingsport couple with an RV hit by under insured dump truck—$500,000 damages. Auto/RV underlying $200,000; PCL handled rest, letting them keep traveling. For families with assets, it's worry-free exploration.
Link: To cover your "toys," visit our Personal Auto and Recreational Vehicle Insurance.
Erie's PCAT37 (Ed. 10/21) adds UM/UIM to PCL, paying "ultimate net loss" above underlying. It mirrors underlying terms but as excess—covers "bodily injury" from uninsured/underinsured, up to PCL limit. Requires full underlying limits; excludes peer-sharing unless you/relative driving.
PCL UM/UIM needs underlying auto UM/UIM at Declarations limits— $100,000/$300,000 or higher for families. Erie's PCAT1 auto endorsement excludes PCL coverage without those minimal limits. Boost underlying to match net worth—a Nashville family did $250k underlying limits and a PCL to $2M for full shield.
Higher-income Tennessee households with $500k+ homes, investments, or toys like ATVs benefit—guards against asset seizures. Provides high limits for multi-vehicle families or teen drivers. Cost: $100-300/year for $1M. A Kingsport retiree added Personal Umbrella UM/UIM for RV trips with grand kids—worth every penny.
Example 1: Johnson City uninsured rear-end—$300k injuries. Auto UM $100k; PCL $200k covered rehab, preserved savings.
Example 2: Memphis underinsured T-bone—$700k verdict, driver at at-fault only had $50k of coverage. The injured driver had underlying UIM $250k; PCL to $1M avoided lien on home.
Example 3: Chattanooga RV semi sideswipe but kept going so it was an uninsured motorist claim—$500k damages. Underlying $200k; PCL excess protected retirement.
Assess net worth—if over $500k, consider. Check auto UM/UIM—aim high during your annual review. A Bristol family added after buying a new camper—seamless.
At Veritas Risk Management, we focus on protecting Tennessee families with customized solutions through Erie and leading carriers. From our Johnson City office at 4451 North Roan Street and Kingsport at 419 E Market St, Kingsport, TN 37660, we handle home, auto, business, and life insurance, plus contractor/estate bonds and employee benefits like group health, life, dental, vision, disability, and Aflac. For higher-net-worth households, we emphasize Personal Catastrophe Liability (umbrella), home, auto, life, and coverage for "toys" like ATVs, campers, and RVs to safeguard your lifestyle.
For Personal Umbrella Policies, home, auto, life, or recreational coverage, call us today or visit Veritasrm.com. Tennessee families, let's secure what matters most.
Andrew Darlington heads Veritas Risk Management and Insurance Services as President and Founder, serving East Tennessee communities from bases in Johnson City and Kingsport. Beginning his journey in 1997, he launched Veritas in October 2009 to craft personalized risk strategies for individuals and companies. His broad expertise encompasses home, auto, business, life, health, and workers' compensation, partnering with esteemed carriers like Erie Insurance for solid defenses.
With credentials including Certified Risk Manager (CRM), Certified Insurance Counselor (CIC), Certified Builders Insurance Agent (CBIA), Accredited Adviser in Insurance (AAI), and Chartered Property & Casualty Underwriter, Andrew commits to transparent, client-focused counsel. He authors pieces on issues like coverage assessments, risk trends, and family safeguards, assisting in expense reductions and enhanced security.
A Memphis origin and King University graduate, Andrew makes Johnson City his home with his wife and six children. Away from the office, he delights in basketball, supporting the Vols, church participation, and family outings. Community-involved through Apex Business Network, Johnson City and Kingsport Home Builders Associations and Home Builders Association of Tennessee, Insurors of Tennessee, and as a church elder, Andrew's clients commend his thoughtful, results-oriented method. His core belief? Build lasting trust with integrity in every client connection.