01/08/2020
As some of you may have noticed, our FB page has been inactive for awhile. We switched our website provider, which led to needing to redo this page. Hopefully, I will return weekly to provide updated advice and information. Your continued contact is appreciated.
Today I would like to emphasize the importance of underinsured motorist insurance. In Wisconsin, every auto policy automatically includes uninsured motorist coverage by law. That insurance provides a payment when you were struck and injured by an uninsured motorist. It does not cover your property damage, but it does cover your personal injury impact, such as medical bills, lost income, and pain and suffering. Underinsured motorist (UIM) coverage is a different type of insurance.
If you are involved in an accident with another driver who does have auto insurance, that insurance may be insufficient to cover your damages. In such circumstances, if you have elected to include UIM coverage in your insurance policy, you can pursue from your own company any amounts in excess of the maximum insurance coverage of the negligent driver (subject to certain deductions). For example, if the other driver had $25,000 worth of coverage, but your medical bills alone were $70,000, having UIM coverage up to the highest possible limit will potentially help provide you protection those bills may be paid, as well as lost income and pain and suffering. Between 2009 and 2011, underinsured motorist coverage basically prohibited anything to be subtracted from the UIM coverage and allowed the coverage to be “stacked,” if you had up to three cars on the same policy. As a result, each car’s premium you paid gave you multiple coverage if you were injured by another driver while you were operating one of the cars on the policy. In the above situation, if a 2010 driver had $100,000 UIM coverage for 3 cars, he or she could collect the $25,000 from the negligent driver’s insurer, and could seek up to $300,000 from her or his own policy.
That changed as of November 1, 2011. The legislature, responding to the insurance lobby, removed “stacking” as a requirement, so that having paid premiums for multiple cars on the same policy no longer meant you could add each car’s coverage, instead limiting you to only the one auto’s benefits. In addition, it allowed insurers to reduce what they paid out by amounts received from health insurance, worker’s compensation, and even the other driver’s insurance. In that same situation described above, if you received the $25,000 from the other driver and your health insurance covered $55,000 of the medical bills, your company would subtract that $80,000 from the $100,000, so the most you could get from your own policy to compensate you for all your damages would be $20,000. You can see how that change benefitted the insurers and not the consumers.
As a result, I recommend you get the maximum available UIM coverage on your cars, and even have it on your umbrella policy if you have one. The premiums are not that huge, and one serious accident can impose huge medical bills, an inability to work, and debilitating disability and pain for a lifetime. Several of my personal injury clients have had the foresight to protect themselves by making sure they had maximum possible UIM coverage, allowing them to receive the compensation they needed when seriously injured.
As always, you should have your legal concerns addressed by an individual lawyer, as advice here is not meant to provide actual legal advice as to any specific fact situation. In matters of personal injury or criminal defense, we provide a free initial consultation at Hertel Law, S.C., and would be glad to meet with you to review individual case situations.