In the state of Wisconsin, you are required to have a specific amount of insurance for your car. One required type of insurance is called uninsured motorist coverage. This is what we’ll be talking about ahead.
Before we dive right into the definition of uninsured motorist coverage, however, let’s talk about the full extent of required insurance for any vehicle in the state of Wisconsin.
Required Auto Insurance in Wisconsin
There are two types of auto insurance required in Wisconsin.
- Liability insurance
- Uninsured motorist insurance
There are also two types of liability insurance:
– Bodily injury (BI) liability insurance
– Property damage (PD) liability insurance
These types of coverage protect other drivers. That’s because, if you to get into an accident with another driver that was your fault, these coverages would pay for their expenses. It would cover costs for their bodily injuries and property damages.
Uninsured Motorist Coverage
Uninsured motorist insurance is completely different from liability insurance. It is not required in all states, but it is required in the state of Wisconsin.
Also called UM coverage, uninsured motorist coverage is meant to protect you when another driver who is uninsured causes an accident.
There are actually three subtypes of UM coverage:
- Uninsured motorist bodily injury coverage
If an uninsured driver causes an accident with your vehicle, uninsured motorist bodily injury coverage pays your medical expenses. It may also pay for the medical expenses of your passengers, people in your household who are driving your insured vehicle, and others who you have approved to drive your vehicle.
Furthermore, in general, you’ll also get coverage under uninsured motorist coverage if you or any of your household members are hit as a pedestrian by an uninsured driver. This depends on your policy, however, so you should always review it to be sure of the stipulations.
- Underinsured motorist bodily injury coverage
Some drivers on the road are underinsured, which means they have insurance, but it won’t cover very much if they cause an accident.
An underinsured motorist is someone who purchased the least amount of required insurance for their car. If you were to be seriously injured in an accident caused by an underinsured driver, their liability coverage would do little. It is almost certain their limits would be far beneath what you actually require. In this case, you could purchase underinsured motorist bodily injury coverage to make up the difference.
- Uninsured motorist property damage coverage
Lastly, many drivers are looking for added property damage protection. This is where uninsured motorist property damage coverage comes in.
If your car is damaged by an uninsured driver, this type of insurance can cover damages. Unfortunately, property damage coverage for uninsured motorists is not available in all states. Notably, it is available in Wisconsin.
Are You Required to Have All Three Types of UM Coverage?
Naturally, you are not required to have uninsured motorist property damage coverage (UMPD). Notably, it is available in Wisconsin.
You are also not required to have underinsured motorist bodily injury coverage (UIMBI). You are required to have uninsured motorist bodily injury coverage (UMBI).
It’s worth noting that even though UIMBI insurance is not required, it is recommended. It can save you a large amount of money if get into an accident with someone with only minimum insurance.
UM and UIM insurance can be difficult to fully understand. Still, it’s an extremely useful type of coverage to have.
If you have questions about UM and UIM insurance, stop into Terp Family Insurance today, or give us a call at your convenience.