Wisconsin law requires that all drivers be responsible for property damage or bodily injuries they may cause to others in a traffic accident. Most people meet this requirement by purchasing sufficient liability insurance, which covers property damage and injuries to others. Yet more than 14 percent of Wisconsin drivers lack any liability coverage at all, and a more significant percentage fail to have enough coverage. This means that they must pay for claims out of their own resources — either through a deposit with the Wisconsin Department of Transportation or through monthly installments or both. This is difficult; property and injury claims can run several thousand dollars and, in some cases, top more than $1 million.
Some motorists who had liability coverage before the pandemic may end up dropping their coverage as they cannot affor it. We have already seen many instances of that, unfortunately.
Drivers who lack liability insurance may be unable to pay for damages or injuries they cause, or to pay them in a timely fashion. That means the victims of the crash will have to pay for the treatment of injuries, and time lost from work themselves unless they have Uninsured Motorist (UM) or Underinsured Motorist coverage (UIM) on their own auto insurance policies.
What is UM or UIM?
Uninsured Motorist and Underinsured Motorist coverage prevent you from having to pay for injuries to your passengers in accidents where you were not at fault. UM and UIM provides this coverage if the driver who was at fault does not have liability insurance or has too little liability insurance to cover the cost of treating the injuries, and compensation for lost time from work and other activities. UM also provides coverage for injuries if you are a victim of a hit-and-run driver.
Wisconsin law requires all auto insurance policies to include UM coverage; UIM is optional but essential in situations where the driver at fault has low liability coverage. For example, Wisconsin law requires coverage for at least $25,000 in injuries to one person and $50,000 per accident. A major injury and lost wages would require much more than this amount.
Liability insurance pays for bodily injuries and property damages caused by one driver to another driver and passengers. UM and UIM provide coverage in case of an injury in an accident caused by another driver who lacks sufficient liability insurance to pay for treating your injuries. You can ensure that your injuries and lost wages, and those of your passengers are covered by buying enough UM or UIM.
Adding a PERSONAL UMBRELLA , along with the optional UM/UIM endorsement available may provide $1,000,000 or more additional available benefits. Contact Thiel Insurance LLC in Appleton at 920-739-6241 or in Kimberly at 920-788-4131 for an auto insurance quote.