Godfrey, Leibsle, Blackbourn & Howarth, S.C.
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Elkhorn, WI

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What is the purpose of underinsured motorist coverage?

Although motorists in Wisconsin must have auto liability insurance, many vehicle drivers do not comply and drive uninsured. For that reason, any person who is involved in an accident may discover that the at-fault driver has no insurance coverage. That will mean the innocent party must settle his or her own medical expenses. However, even if the at-fault driver has insurance, it might be an underinsured motorist, meaning that only some of the damages may be covered.

This is why Uninsured Motorist and Underinsured Motorist coverage was created. The minimum liability coverage required varies from state to state. If an at-fault driver meets only the minimum requirements, it might not be nearly enough to cover the medical costs of the other driver.

Having UM and UIM insurance can be invaluable in such circumstances. An injured accident victim can then claim against his or her own insurance for coverage of those damages. It is a unique type of liability insurance in that both pay the damages of the insured party rather than paying it to a third party. The payment would be to cover losses that would have been paid by the other driver’s insurance provider if he or she had not been uninsured or underinsured.

Victims of car accidents in Wisconsin may find it challenging to sort out the insurance issues while having to deal with injuries, hospitals, doctor’s appointments and the inability to return to work. However, they may find comfort in knowing that it can all be left in the hands of an experienced personal injury attorney who can deal with all issues related to the uninsured or underinsured motorist. A lawyer can handle dealing with insurers and make sure that the accident victim receives a fair offer before deciding whether to accept a settlement offer.

Source: thebalance.com, “Uninsured and Underinsured Motorist Coverages“, Marianne Bonner, Accessed on Aug. 4, 2017

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