Understanding Uninsured And Underinsured Motorist Coverage

By Howard J. Eglash, Personal Injury Attorney

Most drivers assume that if they are injured in a car accident, the at-fault driver’s insurance company will cover their damages. Unfortunately, that is not always the case. Some drivers carry little or no insurance, while others carry only the minimum coverage required by law. When a serious accident occurs, those policy limits may fall far short of covering medical bills, lost wages, and other losses.

This is where uninsured and underinsured motorist coverage becomes important. Although many drivers carry this coverage as part of their own insurance policies, few understand how it works until they need it.

Understanding uninsured and underinsured motorist coverage can help you make informed decisions about your insurance protection and better protect yourself financially after an accident.

What Is Uninsured Motorist Coverage?

Uninsured motorist coverage, often called UM coverage, helps protect you if you are injured by a driver who does not carry liability insurance.

Although Wisconsin law requires drivers to carry auto insurance, not everyone complies. Some drivers allow their policies to lapse, while others drive without insurance altogether.

If an uninsured driver causes an accident, recovering compensation can become significantly more difficult. Even if you obtain a legal judgment against the at-fault driver, that individual may not have the financial resources to pay for your losses.

Uninsured motorist coverage is designed to fill that gap by allowing you to seek compensation through your own insurance policy.

What Is Underinsured Motorist Coverage?

Underinsured motorist coverage, commonly referred to as UIM coverage, applies when the at-fault driver has insurance, but not enough insurance to fully compensate you for your damages.

For example, imagine a driver carries a liability policy with limits of $50,000. If you suffer serious injuries resulting in medical expenses, lost income, and other damages totaling $150,000, the available liability coverage may not come close to covering your losses.

In situations like this, underinsured motorist coverage may provide an additional source of compensation beyond the at-fault driver’s policy limits.

Without adequate UIM coverage, accident victims may be left paying substantial expenses out of pocket.

Why This Coverage Matters

Many people focus primarily on protecting others when purchasing auto insurance. Liability coverage is important because it protects you if you cause an accident. However, uninsured and underinsured motorist coverage protects you and your family when someone else causes the crash.

This protection becomes especially important because serious injuries often involve expenses that extend well beyond initial emergency care.

Accident victims may face:

• Ongoing medical treatment and rehabilitation
• Lost wages and reduced earning capacity
• Long-term pain and suffering
• Future medical expenses related to the injury

When the at-fault driver lacks adequate coverage, UM and UIM coverage can provide critical financial protection.

Common Misunderstandings About UM And UIM Coverage

Many drivers mistakenly believe that uninsured and underinsured motorist coverage applies only in rare situations. In reality, these claims arise more frequently than many people realize.

Another common misconception is that filing a claim under your own policy is the same as filing a claim against the at-fault driver. While you are dealing with your own insurance company, disputes can still arise regarding the value of the claim and the amount of compensation available.

Insurance companies often evaluate claims carefully and may challenge the extent of injuries, the need for future treatment, or the value of certain damages.

For this reason, understanding your policy and your rights is important.

What Happens After An Accident?

After an accident involving an uninsured or underinsured driver, the claims process can become more complicated than a typical insurance claim.

Several important steps should be taken as soon as possible. Seeking medical attention is critical, even if injuries initially seem minor. Medical records often play an important role in establishing the extent of damages.

It is also important to report the accident promptly and preserve evidence whenever possible. Photographs, witness information, police reports, and medical documentation can all become valuable during the claims process.

Early investigation often helps prevent disputes later.

Reviewing Your Insurance Coverage

Many drivers are unaware of the amount of uninsured or underinsured motorist coverage included in their policies. Some carry only minimal limits, while others have elected additional protection.

Before an accident occurs, it is worth reviewing your policy and considering whether your current coverage aligns with your needs.

Factors that may influence coverage decisions include:

• Your household income and financial obligations
• The amount of driving you do regularly
• The potential cost of serious injuries and long-term medical care
• The level of financial protection you would want available after a major accident

Reviewing your policy today may help prevent difficult financial situations in the future.

Protecting Yourself After A Serious Accident

No one expects to be involved in a serious car accident. Unfortunately, not every driver on the road carries enough insurance to fully compensate injured victims.

Uninsured and underinsured motorist coverage provides an important layer of protection when the at-fault driver lacks adequate insurance. Understanding how this coverage works before an accident occurs can help you make informed decisions and better protect your financial future.

At Bosshard Parke, we help injured individuals throughout La Crosse, Sparta, and western Wisconsin understand their rights after an accident. If you have questions about an uninsured or underinsured motorist claim, our team is here to help.

Contact Bosshard Parke today to schedule a consultation and discuss your options.

Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. For personalized guidance, please consult an attorney at Bosshard Parke.