Have you ever thought about what would happen if you were to get into an accident with a motorist in New Holstein who didn’t have insurance?
What if the accident were obviously their fault?
How would they be able to pay for your damages?
How would they be able to pay for any medical expenses you required if you were injured?
What if your passengers were injured?
Many Drivers Don’t Have Insurance
The bottom line is that in the United States today, one in seven drivers are driving without auto insurance. Many other drivers are driving with only the necessary minimum of auto insurance. This puts you at risk.
To solve this rift in coverage, many drivers opt to add UM and UIM coverage to their auto insurance plans.
What Do UM and UIM Stand For?
- UM stands for “uninsured motorist.”
- UIM stands for underinsured motorist.”
Both of these types of insurance protect you. Don’t make the mistake of thinking that they protect drivers without insurance.
What Does UM and UIM Insurance Cover?
UM (uninsured motorist) coverage protects you when an uninsured driver causes an accident. It pays for your medical expenses.
- An uninsured driver is one who has absolutely zero auto insurance coverage. This is illegal.
- UM coverage will pay for your medical expenses and lost wages if you are injured in the accident.
- It can also pay for pain and suffering.
UIM (underinsured motorist) coverage protects you when an underinsured driver causes an accident. It adds to the medical expense coverage that the underinsured driver already has.
- An underinsured driver is one with only the minimum required amount of insurance. This minimum is based on Wisconsin state law.
- They have some liability insurance. But it may not cover all of your medical expenses.
- UIM coverage adds to this coverage to “make you whole.”
- UIM coverage can take care of medical expenses and lost wages if you are injured in the accident.
- It can also pay for pain and suffering.
Remember: UM and UIM Coverage Doesn’t Cover Property Damage
If you were injured in an auto accident, chances are your car was damaged too.
If the accident involved an uninsured driver, however, you’re out of luck. Because their insurance won’t protect you, some states allow drivers to buy UMPD coverage.
UMPD stands for uninsured motorist property damage.
Unfortunately, Wisconsin is not a state that makes UMPD coverage available. Therefore, if you want property damage covered after an accident where an uninsured driver was at fault, you need to have collision coverage.
Collision coverage will pay for this type of property damage in most cases. Still, keep in mind that collision coverage is optional. If you do not have collision coverage, you may be able to take the other driver to court.
What Types of Coverage Are Required in New Holstein?
As a New Holstein resident, you are required to have the minimum amount of auto insured mandated by the state of Wisconsin. This includes:
- Bodily injury liability coverage
- Property damage liability coverage
- Uninsured motorist coverage
* Underinsured motorist coverage is not required in Wisconsin, but you may choose to have it.
Erica Boll Insurance Is Here to Help
It’s not uncommon to be confused by these types of coverage. If you have questions, contact Erica Boll Insurance.
Our experienced agents can help you determine how much UM coverage you should have. We can also help you decide if UIM coverage may be right for you. Get in touch with Erica Boll Insurance today by giving us a call or stopping into our office.
