Picture this:
You’re on I-43, headed into Milwaukee when suddenly a truck cuts you off, forcing you to swerve off the road and into a ditch.
As you wrap your head around what just happened and assess your injuries, you see the at-fault driver speed off. You doubt you’ll ever see their truck again.
So, what happens now?
Clearly, the accident wasn’t your fault. But there’s no way to get insurance information from the at-fault driver. They are now a hit-and-run driver.
The only way you’d be safe is if you were wise when you purchased your auto insurance plan. You’d have to have chosen to include uninsured motorist coverage in your auto insurance plan.
Let’s closely examine uninsured motorist coverage and similar coverages below.
Uninsured Motorist Coverage
Uninsured motorist coverage (UM insurance) is the only form of insurance that can protect you if you’re in an accident with an uninsured driver. Notably, in the example above, it would pay for your medical expenses, lost wages, and pain and suffering.
UM insurance is meant to protect you. It does not protect uninsured drivers. People commonly misunderstand UM coverage by thinking that it is supposed to protect uninsured drivers if you hit them. Actually, that is what your liability insurance is for.
It’s worth noting that, technically speaking, the example above outlines a hit-and-run situation. In fact, uninsured motorist coverage is mostly meant to protect against any driver who does not have auto insurance.
So, for example, let’s say you got into a fender bender at an intersection. You asked the at-fault driver for their insurance information and found out they didn’t have any. In this case, UM coverage would protect you.
But UM insurance also includes coverage for accidents caused by:
- Hit-and-run drivers (those who know they caused an accident but refuse to stop)
- Phantom drivers (those who don’t realize they caused an accident and, therefore, do not stop)
What Types of UM Coverage Are There?
There are three main types of uninsured coverage:
1. Uninsured Motorist Bodily Injury Coverage = “UMBI Coverage”
UMBI coverage covers bodily injuries sustained in an accident caused by an at-fault uninsured driver.
This type of coverage covers you, the driver. It may also cover others driving your insured car:
– Passengers in your car at the time of the accident
– Other individuals who you’ve approved to drive
* Uninsured motorist coverage is required in Wisconsin.
2. Uninsured Motorist Property Damage Coverage = “UMPD Coverage”
UMPD coverage covers damages to your vehicle if you are in an accident with an at-fault uninsured driver.
* Uninsured motorist property damage coverage is not available in Wisconsin.
3. Underinsured Motorist Bodily Injury Coverage = “UIMBI Coverage”
Like UMBI coverage, UIMBI coverage covers bodily injuries sustained in an accident caused by an at-fault driver, but in this case, the at-fault driver is underinsured. This means that the driver has insurance, but only the bare minimum required by the state.
Underinsured motorist coverage can be useful to have in these situations because it will make up the difference for the lack of adequate insurance that the at-fault driver has. It’s often needed because accident-related medical costs and lost wages can be expensive and may exceed the limits on an underinsured driver’s policy.
* Underinsured motorist bodily injury coverage is not required in Wisconsin, but it is recommended.
If you are considering adding UM or UIM coverage to your auto insurance plan, call or stop into Henricks Wilging Insurance today. Our knowledgeable agents would be happy to help you find a policy that fits your needs.