States have different requirements for mandated insurance coverage. Wisconsin mandates that drivers carry BI and PD liability, UI and Medpay (Bodily Injury, Property Damage, Uninsured Motorist, and Medical Payments) coverage. To review your car insurance coverage, contact a Henricks Wilging Insurance agent. In the meantime, this article answers the question, “What Are UI and UIM?”
UI stands for Uninsured Motorist coverage (required in WI) and UIM stands for Underinsured Motorist Coverage.
- Uninsured Motorist (UI) coverage safeguards you against an at-fault driver who doesn’t carry auto liability insurance. This part of your insurance pays your medical bills if you get hurt and reimburses you for damage to your car. Depending on how your policy is written, hit and run accidents may also fall under uninsured motorist coverage.
- Nearly every state has minimum auto insurance coverage requirements. However, these limits may not cover the costs of the accident. Underinsured Motorist (UIM) coverage fills the gap between the at-fault driver’s insurance coverage and the actual cost of your injuries and auto damage — up to your coverage limit.
Importance of Carrying Enough UI and UIM Insurance
It’s imperative to consider how much coverage you will need for Uninsured, Underinsured, and Uninsured Motorist Property Damage. Historically, between 10% and 15% of drivers do not carry enough UI, UIM or UMPD (if available) coverage. Additionally, 14.3% of Wisconsin drivers don’t carry auto insurance despite the laws.
Help During Economic Uncertainty
Due to the economic uncertainty in the wake of the coronavirus, most insurance companies are offering refunds, including major carriers. Contact your insurance company to find out whether you’re eligible for a rebate and how it will be paid. Some companies are sending checks, while others plan to apply the rebate to your next premium payment.
Some insurers have delayed cancellation and deferred premium payments for unemployed policyholders. Others require you to contact your agent or the insurance company itself to ask for help. You will eventually have to catch up on your payments to keep your insurance. However, your insurance company may be willing to set up payment plans you can afford. Contact your agent before you miss a payment for the best outcome. If you do not pay your premium, you will have to drop your insurance, reduce your coverage or agree to a higher deductible (preferred since this allows you to maintain your coverage levels).
No matter what you decide, many drivers will be forced to drop their car insurance. This makes it imperative that you carry enough UI and UIM liability coverage to handle your injuries and vehicle repairs in the event an uninsured driver hits you on the highway.
State Minimums Are Set Extremely Low
Wisconsin mandates minimum insurance coverage for bodily injury, property damage, and uninsured motorist coverage. However, with the rising costs of medical bills and car repairs, you need to prepare for the worst-case scenario. Discuss this with your agent to determine the amount of coverage needed to protect your financial well-being, which may be much higher than the state minimums.
Coverage Example
Liability coverage for bodily injury (BI) and property damage (PD) pays for damages in an accident that you cause. Uninsured and underinsured motorist coverage pays for BI and PD to you, your passengers or your vehicle in an accident caused by a driver with little or no insurance.
Example: You, your spouse, and children get hit by an uninsured motorist on the way to the movies. Your family incurs medical bills, loss of wages, and vehicle damage in excess of $300,000. Since the other driver has no coverage, or low limits, your UI and UIM insurance kicks in — up to the limit of your coverage. Wisconsin currently requires 25/50 uninsured motorist coverage. This caps the payout to $25,000 per person or $50,000 overall for two or more people for bodily injury coverage. Purchasing additional coverage might raise your premium but it wouldn’t leave you financially destitute — owing up to $250,000 out-of-pocket in the example above.
Working with an Independent Insurance Agent
State limits are subject to change, and the maximum coverage available varies between insurance companies. Working with an independent insurance agent, such as Henricks Wilging Insurance, can give you the information you need to get the maximum UI/UIM coverage you can afford. Contact Henricks Wilging Insurance to set up an audit of your current auto insurance coverage or to get a free quote.
