Wisconsin Uninsured & Underinsured Motorist (UIM) Claims

In Wisconsin, the party who is at fault for a car accident is responsible for the victim’s damages. If the victim files a successful personal injury claim with the negligent party’s insurance provider, he or she can receive compensation for any expenses he or she faced.

But what happens if the negligent party does not have enough insurance coverage to compensate a victim for his or her damages? What if a negligent party does not have automobile insurance at all? Our experienced Wisconsin car accident lawyers are well-versed in the role UIM plays after a crash.

Understanding Uninsured And Underinsured Motorist Insurance

Uninsured motorist (UM) coverage protects you when the at-fault driver has no insurance. Underinsured motorist (UIM) coverage takes effect when the at-fault driver has insurance, but not enough to cover your total damages. It’s crucial to understand that this coverage is designed to protect you and your passengers, not the other driver.

In Wisconsin, motorists are required to carry at least $10,000 of coverage for property damage, $25,000 of coverage for injuries and death to single victims, and $50,000 of coverage for injuries and deaths in multivictim accidents in their automobile insurance policies.

Although motorists are not required to carry uninsured or underinsured motorist coverage, this type of coverage can be critical in cases where the at-fault party does not have the necessary coverage to pay the victim for his or her damages.

While Wisconsin mandates liability insurance, the harsh reality is that many drivers still operate vehicles without insurance or with only minimum coverage. This directly affects accident victims, potentially leaving them with significant financial burdens.

According to recent estimates, approximately 15.6% of Wisconsin drivers are uninsured, placing the state 16th in the nation for uninsured motorists. This alarming statistic underscores the importance of UM/UIM coverage. Without it, you could find yourself facing steep medical bills and lost wages with no recourse, even if the accident wasn’t your fault.

When Does UM/UIM Coverage Apply?

Understanding when UM/UIM coverage applies is crucial for protecting yourself on the road. Here are the key scenarios where this coverage comes into play:

• The at-fault driver has no insurance: This is the primary scenario for UM coverage. If you’re involved in an accident caused by a driver who has no insurance whatsoever, your UM coverage steps in to protect you.
• The at-fault driver has minimum coverage, but your damages exceed it: This is where UIM coverage acts as a “gap filler.” For example, if your damages total $100,000, but the at-fault driver only has $25,000 in coverage, your UIM could cover the remaining $75,000 (up to your policy limits).
• Ghost drivers and unidentified drivers: In situations where a phantom vehicle causes you to swerve and crash without direct contact, and there’s no way to identify the responsible party, your UM coverage might apply.

It’s important to note that these coverages are designed to protect you and your passengers, ensuring you’re not left financially vulnerable due to another driver’s lack of adequate insurance.

What To Do After A Hit-And-Run Accident

Many cases that are filed with drivers’ uninsured motorist policies are hit-and-run accidents, meaning that the filing party was involved in an accident with another motorist who fled the scene.

If you are a victim of a hit-and-run, take photographs of your injury and the surrounding scene to demonstrate how the accident occurred. If there were any witnesses to the accident, their testimonies would be very important to your claim.

Fill out an official police report with the local law enforcement to create another piece of evidence for your claim. Submitting evidence with your uninsured motorist claim will give it a better chance of resulting in a favorable settlement for you.

What Damages Does UM/UIM Cover?

UM/UIM coverage in Wisconsin is designed to provide comprehensive protection for accident victims. When you file a claim, you may be able to recover compensation for:

• Medical expenses: This includes all past, present and future medical bills directly related to your injuries from the accident. It covers everything from emergency room visits to ongoing physical therapy.
• Lost wages/income: If your injuries prevent you from working, UM/UIM can replace your lost income during your recovery period.
• Loss of earning capacity: In cases where your injuries result in long-term or permanent disability affecting your ability to earn a living, this coverage can provide compensation for future lost earnings.
• Pain and suffering: These noneconomic damages account for physical pain, emotional distress, mental anguish and loss of enjoyment of life.
• Disfigurement: If your injuries result in permanent scarring or other visible changes to your appearance, UM/UIM can provide compensation.
• Loss of consortium: This covers damages related to the impact of your injuries on your relationship with your spouse or partner.
• Out-of-pocket expenses: This can include costs for transportation to medical appointments, home modifications necessitated by your injuries and other related expenses.

Keep in mind that in Wisconsin, property damage is typically not covered under UM/UIM policies. Instead, property damage is usually handled through collision coverage or the at-fault driver’s liability insurance.

Filing An Insurance Claim

Like any other insurance claim, you must file your uninsured or underinsured motorist claim within the statute of limitations, which is three years from the date of the accident in Wisconsin.

Underinsured motorist claims differ from uninsured motorist claims in that they provide additional compensation, rather than being the sole source of compensation for the victim. If your expenses exceed the amount of compensation the provider can pay, you can seek compensation for the difference between these amounts from your own policy’s underinsured motorist coverage.

If you file this type of claim, you will need documentation to show the amount of compensation you received from the other party’s insurer, as well as documentation showing your total expense amount.

Work With An Experienced Lawyer

If you have been injured in a car accident and the negligent party does not have enough insurance coverage to compensate you for all of your damages, you can seek the compensation you need through your own insurance policy’s uninsured/underinsured motorist coverage.

To learn more, contact our team of experienced car accident lawyers at Hammett, Bellin & Oswald, LLC. Contact our team online or call us at 920-202-8872.