Imagine you’re driving through the streets of New Holstein, Wisconsin, and you get in an accident that wasn’t your fault. That alone is enough to drastically change your life for a while, even if the at-fault driver carries the necessary insurance. Recovering from your injuries is hard enough, but when there are financial issues as well, the issues can compound significantly. What if you can’t rely on the other driver’s insurance to cover the cost of your injuries? What if they don’t have any insurance at all? That’s where uninsured motorist (UI) and underinsured motorist insurance (UMI) comes in. Learn why you need UI and UIM.
Uninsured Motorists Are Relatively Common
Given the legal requirement in Wisconsin for people to have certain levels of insurance, you’d think that most would have at least some. While most do, more people than you might think don’t. In fact, about 14.3 percent of drivers in the state won’t have enough insurance to cover all the damages you might suffer if you get in an accident. That’s a relatively high figure, as only 14 other states have higher percentages.
The problem of uninsured and underinsured motorists is a serious one that is caused by a variety of different factors. A lot of insurance companies have started offering deferred billing. When this happens, the policyholder is faced with several options. They can either have their deductibles increase, have their coverage reduced or drop their insurance. The latter two options can contribute directly to the uninsured motorist problem, so it’s more important than ever to maintain the coverage you need.
Uninsured Motorist Insurance Means You’re Always Covered
If you’re not at fault for an accident, it’s up to the responsible driver’s insurance company to cover the costs of your damages. If this works out and you’re covered, then you’re good to go, and you can focus on recovery. If they don’t even have an insurance company for you to collect damages from, however, you’re stuck with massive costs and nothing to pay for them but your own finances.
With uninsured motorist insurance, an at-fault driver not having proper insurance coverage is no longer a problem. If you’re involved in a situation like this, you can turn to your UI protection to cover the costs of the accident. Keep in mind that this includes more than your medical bills, as you can file a claim for lost wages and emotional damages like pain and suffering as well.
Underinsured Motorist Insurance Covers the Gap
When you’re involved in an accident and the other driver has some insurance, that’s not an automatic guarantee that you’re covered. You could find that their policy limitations fall far short of the actual cost of your damages. That’s where underinsured motorist insurance comes in. Imagine that another driver’s insurance only covers $50,000 of damages, and you’ve suffered $80,000 in costs. Your own underinsured motorist insurance will cover that $30,000 gap.
Get UI and UIM from Erica Boll
If you’re looking to get UI and UIM coverage in New Holstein, Wisconsin, Erica Boll Insurance has got you covered. Get in touch with one of our agents today and take the first step toward driving with peace of mind.