Every driver in the state of Wisconsin is at risk of being involved in an accident. In many cases, these accidents will lead to costly damages, including lost property and/or physical injuries. Generally, all the losses from the accident will be submitted to the responsible party’s insurance company for reimbursement. However, when the party responsible for the accident has limited or nonexistent insurance coverage, the situation grows more complex.
To protect yourself in the event of an accident caused by an uninsured driver, you need uninsured motorists (UI) and underinsured motorists (UIM) coverage. If possible, you should purchase uninsured motorists property damage (UMPD) insurance as well.
Uninsured and Underinsured Coverage Basics
In almost every state, including Wisconsin, drivers are required to purchase liability insurance to cover both bodily injuries and property damage related to accidents they cause. However, despite these legal requirements, some drivers choose to ignore their responsibilities and drive without insurance. When an uninsured or underinsured driver causes an accident, the victims may not be able to get the benefits they need to cover their expenses and losses.
The purpose of UI, UIM and UMPD is to cover situations in which an uninsured or underinsured driver causes an accident. UI and UIM insurance covers bodily injury, while UMPD reimburses victims for damaged property.
Is UI and UIM Insurance Required?
UI and UIM insurance is required by law in some states. In fact, the state of Wisconsin required drivers to purchase UI and UIM coverage with low limits. However, it is essential to note that buying the minimum amount of coverage required is rarely recommended. The limits on these policies are typically too low to adequately compensate you in the event of an accident caused by an uninsured or underinsured driver.
According to data collected across the United States, between 10 and 15 percent of drivers usually ignore their responsibility to purchase liability insurance. In Wisconsin, the percentage of uninsured drivers was 14.3 during 2015. This number does not include underinsured drivers. The data clearly shows that the risk to drivers in the state of Wisconsin is high. Thus, it is important to purchase adequate UI and UIM insurance policies regardless of legal requirements.
Because of the economic changes related to coronavirus, the risk to drivers on the road is likely to grow even more. Loss of wages made it more difficult for many drivers to afford their car insurance policies. Even though some insurance providers reduced their premiums or offered other forms of relief temporarily, this situation will likely increase the number of uninsured or underinsured drivers on the road.
Getting the Coverage You Need
Drivers in Wisconsin are already required to purchase minimum amounts of liability coverage, as well as UI and UIM insurance. However, for most drivers, the limits on these policies are not as high as they need to be. To make sure you have the coverage you need, we recommend working with one of our independent agents. Not only can we help you review your coverage needs and choose the most appropriate limits, but we can also compare quotes from different insurance providers to make sure you get the best price.
To learn more about your UI and UIM insurance options, please contact Glass Insurance Center today. We have offices located in both Silver Lake and Lake Geneva.