Understanding Uninsured and Underinsured Motorist Coverage: Why It Matters
When you’re driving, you’re not just relying on your own insurance—you’re also relying on other drivers to have adequate coverage. Unfortunately, not everyone on the road is insured, or insured enough. That’s where Uninsured and Underinsured Motorist Coverage (often abbreviated as UM/UIM) comes in. This often-overlooked piece of your auto insurance policy can be a financial lifesaver when accidents happen with drivers who don’t have the means to pay.
What Does Uninsured Motorist Coverage Do?
Uninsured Motorist Coverage kicks in when you’re hit by a driver who doesn’t have any auto insurance. Even though auto insurance is legally required in Wisconsin, some drivers still take the risk of going without it. If they hit you, they likely won’t be able to cover your medical bills, lost wages, or vehicle repairs. UM coverage protects you in this situation, making sure you’re not left paying out of pocket for someone else’s mistake.
What About Underinsured Motorist Coverage?
Underinsured Motorist Coverage helps when the at-fault driver does have insurance, but not enough to cover your damages. For example, if your injuries total $100,000 and the at-fault driver’s policy only covers $50,000, UIM can cover the remaining $50,000, depending on your policy limits. With rising medical costs and vehicle repair prices, it’s more common than you might think to run into underinsured drivers.
Why You Should Consider Increasing Your UM/UIM Limits
Many people opt for the minimum UM/UIM coverage required by law, but that may not be enough if you’re in a serious accident. It’s worth reviewing your limits and increasing them if you can. The cost to raise your UM/UIM coverage is generally small compared to the protection it offers. Think of it as a safety net—not just for your car, but for your health and financial stability.
How UM/UIM Coverage Works in Real-Life Scenarios
Let’s say you’re stopped at a red light and someone rear-ends you. You suffer a neck injury, miss two weeks of work, and have thousands of dollars in medical expenses. If the driver who hit you doesn’t have insurance, you’d normally be stuck trying to recover those costs on your own. But with UM coverage, your own policy steps in to cover what the other driver couldn’t. Similarly, if the driver has insurance but only carries the state minimum liability limits—which often aren’t enough—your UIM coverage can help bridge the gap so you’re not left footing the bill.
UM/UIM Coverage for Hit-and-Run Accidents
One important (and often overlooked) benefit of uninsured motorist coverage is that it typically applies to hit-and-run accidents. If someone hits your car and speeds off without leaving any information, that driver is considered “uninsured” for insurance purposes. In that case, your UM policy can help cover your injuries and damages. This is especially valuable in urban areas or places with higher rates of hit-and-runs. Without this coverage, you might be left paying for the damage with no way to recover the costs.
Peace of Mind on Every Drive
No one plans to get into an accident, but being prepared can make all the difference. Uninsured and Underinsured Motorist Coverage isn’t just a line item on your policy—it’s protection for you, your passengers, and your future. Take a moment to review your auto insurance and talk to your agent if you’re not sure what your current UM/UIM coverage looks like. It’s one of those things you hope you never need, but you’ll be thankful for if the worst happens.
Final Thoughts: A Small Price for Big Protection
Uninsured and underinsured motorist coverage is one of those things you don’t think much about—until you really need it. With so many uninsured or poorly insured drivers on the road, this coverage gives you peace of mind that you won’t be financially devastated by someone else’s lack of responsibility. It’s relatively inexpensive compared to the costs it could save you. So next time you review your auto insurance, don’t just look at the deductible—look at your UM/UIM limits and make sure they’re strong enough to protect you and your loved ones.
Jim Bremberger has worked in the insurance industry since 2009, gaining extensive experience with minor and significant claims that can significantly impact a family without adequate coverage. By joining the independent sector and teaming up with many insurance carriers, he can offer exceptional coverage at competitive rates for residents all over Wisconsin.