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Why You Need Liability Insurance

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If you own a vehicle, you most likely know that you need to purchase certain types of insurance coverage to protect yourself on the road. In fact, the state of Wisconsin even requires drivers to purchase a minimum amount of property damage and bodily injury liability coverage. However, these are not the only types of insurance you need to be properly protected. 

Understanding the Limits of Liability Insurance

The property damage and bodily injury liability policies you are required to purchase under state law apply only when you are responsible for an accident. For example, if you fail to yield to another vehicle and cause a crash, your liability insurance will cover any property damage or injuries that occur up to the limits of your policy. 

However, if you are involved in an accident caused by another driver, your liability insurance would not apply. Instead, you would be relying on the other party’s insurance coverage. If the responsible driver is not insured, you won’t have access to the benefit you need to cover your losses unless you have UI and UIM coverage. 

What Is UI and UIM Insurance?

UI and UIM insurance policies offer specialized policies that apply in the event of an accident caused by another driver who lacks insurance or has a limited amount of coverage. In these cases, your UI and UIM insurance will pay for your related losses, including medical bills, lost wages, and property damage up to the limit of the policy.

Research indicates that a significant portion of drivers is currently operating their vehicles without the appropriate insurance coverage. Historically, the percentage of drivers who elected not to purchase the required car insurance has been as high as 15 percent. This figure does not include those drivers who purchase insurance coverage with low limits that won’t provide sufficient payment in the event of an accident. Thanks to the recent COVID pandemic and the associated economic difficulties, it is likely that these numbers are even higher. 

Purchasing the Coverage You Need

Like all insurance policies, UI and UIM insurance coverage is subject to limits. These limits will determine the maximum amount of benefits you will receive when involved in a covered accident. For this reason, it is important to consider the limits carefully when you shop for insurance coverage. UI and UIM coverage limits are typically expressed as split limits, with the first number referring to the maximum amount of coverage per person and the second number referring to the maximum amount of coverage per accident. 

To ensure that you have the UI and UIM coverage you need to adequately protect yourself from loss, talking to an insurance agent is recommended. An independent insurance agent will be able to review your situation and needs to determine the appropriate coverage limit. Your independent insurance agent will also be able to help you compare quotes from different insurance providers to find the option that is most affordable for you. 

At Main Street Insurance, we offer customized services for every client in Ashland and the surrounding area. Please contact us today to get started.