All motorists have a duty to obtain minimum mandatory insurance coverage. However, not all drivers comply with this basic regulation. According to data from the Insurance Information Institute (III), approximately 15.1 percent of drivers in Wisconsin are uninsured (2022). In other words, more than 1 in every 7 Wisconsin drivers is not properly insured.
You need to protect yourself from the risk caused by uninsured and underinsured motorists. There is specific insurance coverage, known as UM/UIM motorist coverage, that you can obtain for additional protection. Here, our Wisconsin auto accident lawyers provide a more comprehensive overview of uninsured and underinsured motorist coverage.
Drivers can check their UM and UIM coverage limits on their declarations page, which is the summary document that comes with their automobile insurance policy. Reviewing this page regularly helps you understand whether you have enough insurance coverage to protect yourself after a serious accident.
The Challenge: A Path to Compensation After Being Hit By an Uninsured Driver
Wisconsin is a fault-based motor vehicle accident state. A driver or other party who causes a collision is responsible for the resulting damages. The unfortunate reality is that being hit by an uninsured driver can leave you in a difficult position. Without the at-fault driver’s liability insurance to cover damages, recovering compensation becomes more complex.
You can hold a negligent driver personally liable for your damages. However, very few motorists who lack the legally required minimum coverage have sufficient assets to cover damages after a serious accident. Drivers can protect themselves through uninsured motorist coverage.
Driver’s negligence is the foundation of most motor vehicle accident claims in Wisconsin. When the other driver’s negligence caused the accident but they have no liability coverage, your own policy becomes the primary path to recovering expenses for medical expenses, lost wages, and property damage.
Uninsured and Underinsured Motorist Coverage Provides Financial Protection
Uninsured/underinsured motorist coverage is a type of insurance coverage that is designed to protect you against the risk posed by uninsured and underinsured drivers. Whether you were involved in a truck accident, motorcycle accident, or any other type of motor vehicle collision, you may be able to rely on this motorist coverage if the other driver did not have proper liability coverage.
Uninsured motorist coverage typically steps in if the at-fault driver has no active insurance policy. Underinsured motorist coverage helps in situations where the at-fault driver’s policy limits are too low to cover the full extent of your damages. Here are key points to understand:
- Protection from Uninsured Driver Cause Crashes: If you sustain injuries or property damage, UM/UIM can help pay for medical expenses, lost wages, and vehicle repairs that would otherwise fall on you. It is an important form of financial protection.
- Legally Required in Wisconsin: Certain states require UM/UIM coverage, while others make it optional. Our state requires it. In Wisconsin, drivers must obtain uninsured motorist coverage of at least $25,000 for one person and $50,000 for two or more people.
- Coverage Limit Matter: Along the exact same lines as your liability insurance, your UM/UIM coverage will be subject to maximum limits. If your damages exceed those limits, you may need additional coverage options or personal injury protection.
- Hit-and-Run Accidents Are Usually Covered: In many cases, a hit-and-run driver is considered “uninsured.” That matters. Unfortunately, hit-and-run crashes are too common in our region. UM/UIM coverage can step in and help to fill the gap.
The Bottom Line: Uninsured and underinsured drivers pose a significant risk on our roads. It is a financial risk that all motorists should be prepared for. UM/UIM coverage helps to cover the gap. Indeed, UM/UIM can spare you from overwhelming expenses in the wake of an accident caused by someone else’s negligence. It ensures that you receive compensation for injuries, property damage, and other losses, even when the at-fault driver cannot pay. By adding this coverage to your policy, you can achieve greater peace of mind and more comprehensive financial protection.
What Does Underinsured Mean in Wisconsin?
Underinsured means that the at-fault driver carries liability insurance, but their coverage limits are not high enough to pay for all of the damages they caused. For example, if the other driver’s negligence caused $80,000 in injuries and property damage but their policy only covers $25,000, their insurance is not enough to cover the full amount.
Underinsured coverage, also called UIM coverage, covers the gap between what the at-fault driver’s insurer pays and your actual losses up to your own UIM coverage limits. This coverage protects you from being left with large out-of-pocket expenses after a serious accident caused by a driver who technically had insurance but did not carry enough.
Understanding What UM and UIM Cover
Both uninsured motorist coverage and underinsured motorist coverage can pay for bodily injury losses such as medical expenses, medical payments coverage for immediate care costs, and lost wages while you are unable to work. These coverages focus on the personal harm done to you and your passengers in the insured vehicle.
Property damage requires separate collision coverage or comprehensive coverage under most standard automobile insurance policies. If you want your vehicle repairs covered regardless of fault, collision coverage on your own policy handles that. Your UM coverage generally covers bodily injury rather than property damage unless you have specifically purchased uninsured motorist property damage coverage.
The minimum amount of UM coverage required in Wisconsin is $25,000 per person and $50,000 per accident. Many drivers choose higher limits for more protection because medical expenses and lost wages from a serious accident can easily exceed the minimum limit. Reviewing your current limits is a smart step for any Wisconsin driver.
Dealing With Your Own Insurance Company Can Still Be Difficult (An Attorney Can Help)
Your UM/UIM claim is brought against your own insurer. You pay your premiums and, as such, you have the fair and reasonable expectation that any claim will be paid in a timely manner. Unfortunately, some significant challenges can arise. Even when dealing with your own insurer for uninsured motorist coverage, you cannot rely on insurance adjusters to look out for your best interests. Insurers prioritize protecting their own bottom line and want to settle claims for less money. You may encounter disputes over fault, policy limits, or the extent of your injuries.
Submit evidence to support your uninsured motorist claim for better outcomes. Documentation of expenses is required for underinsured motorist claims, so keep records of all medical expenses, property damage repairs, and wages lost. The more organized your documentation, the harder it is for the insurer to dispute the amount you are owed.
A Wisconsin auto accident lawyer with experience handling UM/UIM claims can help you take action and seek the full and fair financial compensation that you deserve.
Insurance Claims Tip: Following a collision with an uninsured or underinsured driver, it is imperative that you notify your own insurance company right away. Even if you know that the other driver was responsible for causing the accident, you should always notify your own insurance provider as soon as possible. You will be required to notify your insurer right away as part of your UM/UIM coverage.
Frequently Asked Questions About Uninsured and Underinsured Motorist Coverage
How Long Do I Have to File an Uninsured Motorist Claim in Wisconsin?
You have three years from the date of the accident to file a personal injury claim under Wisconsin law. You must file your claim within the statute of limitations or you may lose your right to recover compensation entirely. Do not wait, because gathering evidence and building a strong claim takes time, and your insurer needs to be notified promptly under the terms of your policy.
Does UM Coverage Pay for Property Damage to My Vehicle?
Standard uninsured motorist coverage in Wisconsin focuses on bodily injury rather than property damage. If you want coverage for vehicle damage caused by an uninsured driver, you typically need collision coverage or a specific uninsured motorist property damage endorsement. Property damage requires separate collision coverage under most standard policies. Check your declarations page to understand exactly what your policy includes.
What if the At-Fault Driver Has Some Insurance but Not Enough?
This is where underinsured motorist coverage comes in. Underinsured means the other driver has liability insurance, but their policy limits are too low to fully compensate you for your injuries and losses. Your UIM coverage fills the gap between what their insurer pays and the maximum amount your UIM coverage limits allow. This is why carrying adequate UIM coverage limits is so important, especially for serious accidents.
When Is a Vehicle Considered a Total Loss in Wisconsin?
Insurance companies consider a vehicle a total loss if the cost of repairs exceeds approximately 70 percent of the vehicle’s actual cash value. At that point, the insurer pays out the market value of the vehicle rather than covering repairs. This can be a point of dispute, so understanding how your insurer calculates vehicle value helps you evaluate whether a total loss determination is fair.
Do I Need UM/UIM Coverage if I Already Have Health Insurance?
Yes, UM/UIM coverage is still worth having even if you carry health insurance. Health insurance does not cover lost wages, property damage, or pain and suffering the way a UM/UIM claim does. It also typically involves deductibles, copays, and coverage limits of its own. UM/UIM motorist coverage provides a separate layer of protection that covers the full range of losses you may suffer after an accident caused by an uninsured or underinsured driver.
How Our Wisconsin Car Accident Lawyers Can Help With UM/UIM Claims
Uninsured motorist claims are notoriously complex. If you have a lot of questions about your rights or your options after a serious collision, you are certainly not alone. At Fitzpatrick, Skemp & Butler, LLC, our Wisconsin personal injury attorney always puts victims and families first. We have the skills, knowledge, and experience to handle all aspects of your uninsured/underinsured motorist claims. Our team will invest the time and resources to help you get justice and the maximum financial compensation. Your initial consultation with our Wisconsin lawyer is free and confidential.
Contact Our Wisconsin Uninsured Motorist Accident Lawyers Today
At Fitzpatrick, Skemp & Butler, LLC, our Wisconsin car crash lawyers have extensive experience with UM/UIM claims. If you were hit by an uninsured or underinsured driver, we are here to help. Reach out to us by phone at 608-784-4370 or send us a message online for your free, no obligation case assessment. With law offices in Eau Claire, Onalaska, and La Crosse, our firm handles uninsured motorist accident claims throughout the entire region.