Many drivers are confused by UM and UIM coverage, and it’s not surprising. These types of coverage can cause widespread misconceptions. Confusion is mostly about what types of auto insurance cover who and in what situations.
Most notably, many people mistakenly think that UM and UIM coverage (uninsured and underinsured motorist coverage) is coverage meant to pay the expenses of other drivers who do not have insurance at all or don’t have enough insurance.
This is not the case. In fact, UM/UIM coverage is for you. It may also be for your household family members, your approved drivers, your passengers, and your vehicle.
Below, we will discuss everything you need to know about this type of insurance and why it’s important to have.
What Would You Do if You Were Injured by an Uninsured Driver?
This is the first question you should ask yourself when considering UM and UIM coverage.
About 1 in 7 U.S. drivers don’t have auto insurance of any kind.
If you were to get into an accident with one of these drivers, your injuries would not be covered.
UM and UIM coverage is insurance you purchase, which protects you in these situations.
- Uninsured motorist coverage is used when an uninsured driver causes you injuries because of an accident.
- Underinsured motorist coverage is to protect against drivers who only have the minimum amount of auto insurance required.
Is UM and UIM Coverage Needed in Wisconsin?
As you probably know, insurance requirements vary by state. This is how it is with uninsured and underinsured motorist coverage as well. It depends upon what state you’re in and where your vehicle is registered.
In the state of Wisconsin, uninsured motorist coverage is required. However, it is not required to have underinsured motorist coverage.
What if There’s Damage to My Car?
There is another type of UM coverage as well. It is called uninsured motorist property damage coverage or UMPD.
UMPD coverage is not available in every state. Very few states require that all motorists have uninsured motorist property damage coverage. Some states do not require it, but it is offered by insurance companies.
In the state of Wisconsin, uninsured motorist property damage coverage is not an available coverage option.
This leaves many drivers with questions. If you get into a collision with an uninsured motorist, there may be damage to your car. This damage will be the cause of the other driver if they were at fault. Shouldn’t they have to pay for the damage costs?
Yes, they should.
It is certainly illegal to drive in the state of Wisconsin without insurance. Someone who gets into an accident with you and causes damage to your car or personal injuries faces a lot of legal trouble.
In terms of paying for your vehicle’s damage, you typically have two options:
- Use your collision coverage. If you purchased collision coverage with your auto insurance plan, this should take care of property damage caused by another driver who is uninsured.
- Sue the uninsured driver. Collision coverage is not required, so you may not have it. If this is the case, it is generally within your legal right to sue the other driver for your vehicle’s repair costs.
Questions About UM/UIM Coverage?
Mayville Insurance would like to help. Our agents are standing by to answer your questions and concerns about UM/UIM coverage. We understand these aren’t easy concepts to grasp. We can also assist you in finding a new auto plan or improving your existing policy.
To speak with an agent today, stop into our office, or give us a call.