Uninsured and Underinsured Motorist Coverage Explained
Car accidents are stressful enough—but discovering the at-fault driver has little or no insurance can make the situation far worse. That’s where uninsured motorist (UM) and underinsured motorist (UIM) coverage come into play. In Wisconsin, these types of coverage can be critical to protecting your financial recovery after a crash.
What Is Uninsured Motorist (UM) Coverage?
Uninsured motorist coverage applies when you are injured in an accident caused by a driver who has no liability insurance. Although Wisconsin law requires drivers to carry insurance, not everyone complies. If an uninsured driver causes a crash, you could be left with medical bills, lost wages, and other damages.
UM coverage steps in to cover those losses. It typically applies to bodily injury claims, including medical expenses, pain and suffering, and lost income. In Wisconsin, insurance companies are required to offer uninsured motorist coverage, and most policies include it by default.
What Is Underinsured Motorist (UIM) Coverage?
Underinsured motorist coverage is slightly different. It applies when the at-fault driver has insurance, but their policy limits are too low to fully cover your damages. For example, if your medical bills and losses total $100,000 but the other driver only carries $25,000 in liability coverage, UIM coverage can help bridge the gap.
Unlike UM coverage, UIM coverage is not always automatically included in every policy. However, Wisconsin insurers must offer it, and policyholders can choose whether to purchase it.
Why UM and UIM Coverage Matter in Wisconsin
Medical costs from even a moderate accident can quickly exceed minimum insurance limits. Wisconsin’s required minimum liability coverage may not be enough in serious injury cases. Without UM or UIM coverage, you may have limited options for recovering full compensation.
These coverages provide an extra layer of protection for you and your family. They can apply not only when you are driving, but also if you are a passenger, pedestrian, or even injured in a hit-and-run accident.
How Claims Work
Filing a UM or UIM claim involves working with your own insurance company rather than the at-fault driver’s insurer. While that might sound straightforward, disputes can still arise. Insurance companies may question the extent of your injuries, the value of your claim, or whether the other driver truly lacked sufficient coverage.
Because of this, it’s important to document everything after an accident—medical treatment, expenses, and how your injuries affect your daily life. Strong evidence can make a significant difference in the outcome of your claim.
Key Takeaways for Wisconsin Drivers
UM and UIM coverage are essential safeguards in a state where not every driver carries adequate insurance. They help ensure that you are not left paying out of pocket for someone else’s negligence.
Before an accident ever happens, review your policy carefully. Consider increasing your UM and UIM limits to better protect yourself financially. After an accident, understanding how these coverages work can help you make informed decisions and pursue the compensation you deserve.
In the end, uninsured and underinsured motorist coverage isn’t just optional protection—it’s peace of mind on Wisconsin roads.
If you, or someone you know has been wrongfully injured, contact Buss Law, LLC today for a FREE consultation!
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