Insurance is an inescapable part of driving a vehicle. Every state requires you to carry at least some kind of insurance, and Wisconsin is no exception. Given what drivers could lose in the event of a serious accident, however, many tend to carry far more than the legal requirement, but this is not always the case. That’s where uninsured motorist (UI) and underinsured motorist (UIM) insurance comes into play. Learn everything you need to know about UI and UIM and discover what makes these particular kinds of coverage essential.
Why Drivers Without Insurance Are a Problem
Driving without insurance is certainly a problem for the driver, but if they cause an accident that leaves you with an injury, it could be a problem for you as well. Your damages are meant to be paid by the other driver’s insurance company, so them not having one can be a serious problem. In Wisconsin, about 14.3 percent of drivers on the road don’t have the proper insurance to cover typical bodily injuries. That’s the 15th-highest percentage in the country.
There are quite a few reasons why someone might be driving without insurance. It could be that they simply can’t afford it. Deferred billing hasn’t made the situation much better either. When policyholders get their billing deferred, they will either have to increase their deductible, reduce their coverage or simply drop their insurance. Unfortunately, far too many opt for the last two options. That’s why it’s important you have all the UI and UIM coverage you need.
Benefits of Uninsured Driver Insurance
When you have uninsured driver insurance, you can drive with peace of mind knowing you’re protected regardless of the other driver’s insurance policy. Uninsured motorist coverage works similarly to liability insurance, albeit in reverse. It essentially takes the place of the liability insurance that the other driver should’ve had.
Uninsured motorist insurance is primarily designed to cover damages you sustain in the form of bodily injuries. Keep in mind, however, that this isn’t restricted solely to medical bills. You can also get compensation for lost wages and even non-economic damages like pain and suffering and post-traumatic stress. In Wisconsin, there is a legal minimum required, though the most serious damages will require more than what some of the low-value policies can offer.
Benefits of Underinsured Driver Insurance
Underinsured driver insurance works much the same as UI. It’s designed to cover damages for any bodily injuries, albeit to a lesser degree. That’s because an underinsured driver will still be able to cover a portion of your damages with their limited insurance. UIM is designed to cover the rest. For example, you may sustain $100,000 worth of injuries in an accident. The other driver who caused the accident may only have insurance that covers $50,000. Your UIM would cover the remaining $50,000.
Find UI and UIM with Frydach Insurance
When you’re looking for UI and UIM, look no further than Frydach Insurance. Our agents are happy to work with you to help you discover the exact kind of insurance that will best fit your needs. Contact us today to get started!