Understanding Uninsured and Underinsured Motorist Coverage
When purchasing auto insurance, many people balk at the initial quote from the insurance company and immediately look for ways to cut down on high premium costs. Unfortunately, because they are optional in most states, uninsured (UM) and underinsured (UIM) insurance coverage are often the first things waived.
In Wisconsin, UM coverage is mandatory but UIM coverage is optional. UM coverage helps you pay for any injuries caused to you or your passengers in an accident involving an uninsured driver or a hit and run. UIM coverage comes into play when you’re hit by a driver who has some insurance, but not enough to cover all of your medical costs.
So is it worth it to purchase one or both of these types of coverage? In our opinion, the answer is yes.
As you can see from the chart on the left, a consumer with this company can buy Uninsured Motorist coverage (UM) at the state minimum level of $25,000/$50,000 for $7.08 per 6 months, or $14.16 per year. For an additional $5.74 every 6 months, or $11.48 they could raise that level to $300,000/$500,000. The same analysis holds true regarding Underinsured Motorist coverage (UIM). The chart shows that for an extra $6.59 every 6 months, or $13.18 per year the consumer could protect his/her family with $500,000/$1,000,000 of UIM coverage.
Even if UM and UIM insurance are not required where you live, remember that the odds of getting hit by an uninsured or underinsured driver might be greater than you think. In Wisconsin alone, the number of uninsured motorists topped out at 12-15 percent in 2012!
The Bottom Line
Bottom line: too many families have been victimized by drunk, inattentive and just plain negligent drivers who carry no insurance or too little insurance. As a result, families are left with woefully inadequate compensation for very serious injuries and death. Don’t fall victim to the negligence of others and consider purchasing both the mandatory UM coverage as well as the optional UIM coverage. This totally affordable protection could end up saving your life.
Domnitz & Domnitz, S.C. are experienced motor vehicle accident attorneys eager to represent those injured through no fault of their own. If you have been injured in a car accident by an uninsured motorist or a motorist with no insurance or insufficient insurance, contact us for a free, no-obligation consultation.