You do everything right. You drive safely, you follow the rules of the road, and you carry the required auto insurance to protect yourself and others. But what happens when the driver who hits you didn’t do the right thing? What if they have no insurance at all, or so little that it won’t even begin to cover your medical bills?
Unfortunately, this scenario is all too common on Wisconsin roads. Being in an accident is stressful enough, but discovering the at-fault driver is uninsured or underinsured adds a significant layer of financial anxiety. This is where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage become your most important financial lifeline. This post will explain how this vital coverage works in Wisconsin and what steps you must take to protect your right to compensation.
The Difference Between Uninsured and Underinsured Motorist Coverage
While often grouped together, UM and UIM coverage protect you in two distinct situations. Understanding the difference is key to ensuring you are properly insured.
Uninsured Motorist (UM) Coverage
Uninsured Motorist (UM) coverage is mandatory in Wisconsin. Every auto insurance policy sold in the state must include it. This coverage steps in to pay for your bodily injuries when you are hurt by:
- A driver who has no auto insurance at all.
- A hit-and-run driver who cannot be identified.
Under Wisconsin law, all policies must include UM coverage with minimum limits established by state statute. It is crucial to note that standard UM coverage in Wisconsin is for bodily injury only; it does not cover damage to your vehicle. Property damage must be pursued through other coverage types or directly against the at-fault driver.
Underinsured Motorist (UIM) Coverage
Underinsured Motorist (UIM) coverage is optional in Wisconsin, but it is one of the most important coverages you can buy. UIM protects you when the at-fault driver has insurance, but their liability limits are too low to cover the full extent of your damages.
Consider a scenario where your medical bills, lost wages, and pain and suffering exceed what the at-fault driver’s insurance policy will pay. The at-fault driver only carries the minimum liability coverage required by Wisconsin law. Without UIM coverage, you would be personally responsible for the difference between your total damages and what their insurance pays. If you have UIM coverage, it kicks in to cover that gap, up to your policy limits.
| Coverage Type | Is it Required in WI? | What it Covers |
| Uninsured Motorist (UM) | Yes (Mandatory) | Your bodily injuries caused by a driver with NO insurance or a hit-and-run. |
| Underinsured Motorist (UIM) | No (Optional) | The gap between your damages and the at-fault driver’s INSUFFICIENT insurance limits. |
Steps to Take After an Accident with an Uninsured or Underinsured Driver
If you are in an accident, you may not know the other driver’s insurance status right away. It is vital to follow these steps to protect yourself legally and financially:
- Call 911: Report the accident and request police and medical assistance. A police report is critical for a UM claim, especially in a hit-and-run situation.
- Gather Information: Get the other driver’s name, address, phone number, and license plate number. Use your phone to take a picture of their driver’s license and vehicle registration.
- Document the Scene: Take photos and videos of the vehicle damage, the accident scene, road conditions, and your visible injuries.
- Seek Immediate Medical Attention: Your health is the priority. This also creates a medical record linking your injuries directly to the crash.
- Notify Your Own Insurance Company: Report the accident to your insurer promptly. Explain that the other driver may be uninsured or underinsured, or that it was a hit-and-run.
- Do Not Give Recorded Statements: Avoid providing recorded statements to any insurance company without first consulting an attorney.
The UM/UIM Claim Process: A Fight You Shouldn’t Face Alone
When you file a UM or UIM claim, you are making a claim against your own insurance company. Many people assume their insurer will be on their side, but this is a common and costly mistake. Your insurance company is a business, and its goal is to minimize payouts. They will treat your UM/UIM claim just like any other claim, meaning they may:
- Question the severity of your injuries.
- Argue that some of your medical treatment was unnecessary or excessive.
- Offer a lowball settlement that doesn’t cover your future needs.
- Dispute that the other driver was entirely at fault.
- Delay the claims process in hopes you will accept less.
This is why you need an experienced personal injury attorney. An attorney will advocate for your best interests, not the insurance company’s bottom line.
Maximizing Your Recovery: Stacking Coverage
In Wisconsin, you may be able to “stack” UM/UIM coverage if you have multiple vehicles on your policy. Stacking allows you to combine the coverage limits from each vehicle to increase the total amount available for your claim. For example, if you have two or three cars insured under the same policy with UIM coverage on each, you may be able to stack them for a significantly higher total amount of available coverage. Insurance policies can be complex, and an attorney can determine if stacking is an option for you and how to properly pursue it.
Why Higher UM/UIM Limits Are Worth the Investment
While Wisconsin requires minimum UM coverage by law, those statutory minimums may not be nearly enough to cover serious injuries. Consider purchasing UM and UIM coverage that matches or exceeds your liability coverage limits. The additional premium is often surprisingly affordable, and the protection it provides can be invaluable if you are ever in a serious accident with an uninsured or underinsured driver.
Think of it this way: you cannot control whether other drivers carry adequate insurance, but you can control your own protection. Higher UM/UIM limits give you peace of mind knowing that you and your family are protected, regardless of the other driver’s insurance situation.
Understanding the True Cost of Being Underinsured
Many Wisconsin drivers carry only the state-required minimum insurance coverage to save money on premiums. However, the reality is that serious injuries from car accidents can result in medical expenses, lost income, and other damages that far exceed minimum policy limits. If you are hit by one of these minimally insured drivers, you could face financial devastation unless you have adequate UIM coverage to bridge the gap.
Consider the full scope of damages that can result from a serious accident: emergency room visits, ambulance transport, surgeries, hospital stays, ongoing physical therapy, prescription medications, medical equipment, lost wages during recovery, reduced earning capacity if you cannot return to your previous job, and compensation for pain and suffering. When you add up these costs over months or even years of recovery, it becomes clear why minimum insurance coverage is rarely sufficient to fully compensate an injured person.
Why You Need a Wisconsin Personal Injury Lawyer
Dealing with an uninsured or underinsured motorist claim is complex and requires knowledge of Wisconsin insurance law and claims procedures. The attorneys at Fitzpatrick, Skemp & Butler, LLC have extensive experience holding insurance companies accountable and ensuring our clients get the full compensation they are owed. We will:
- Thoroughly investigate the accident and the at-fault driver’s insurance status.
- Analyze your insurance policy to identify all available coverages, including stacking options.
- Accurately calculate the full value of your claim, including future medical costs and lost income.
- Handle all negotiations with your insurance company so you can focus on recovery.
- Take your case to court if the insurer refuses to offer a fair settlement.
Don’t let an irresponsible driver’s mistake ruin your financial future. Contact us today for a free consultation to discuss your case. You pay no attorney fees unless we win.