Across the United States, about one in seven drivers are uninsured.

Despite state laws requiring drivers to have auto insurance, about 13.8% of motorists are uninsured according to a study from the Insurance Research Council (IRC). The research group says the poor economy is likely a major factor in this number.

In Wisconsin, auto insurance is required. On April 12th, Governor Walker signed Assembly Bill 4 into law, which takes effect on November 1st. This Bill is designed to lower car insurance rates.

What Happens If I am Hit by an Uninsured Driver?

The solution is found in your own auto insurance policy. Despite its name, uninsured motorists coverage is not designed to protect the uninsured driver; it is for YOUR protection. UM coverage typically pays for injury you suffer from an accident caused by an uninsured driver. UM coverage also applies to damages in hit-and-run incidents.

Underinsured Drivers

Because many drivers underestimate the necessary limits of insurance, there is an even greater amount of underinsured drivers (motorists who are inadequately insured). Many people only purchase minimum limits like $25,000 per person, $50,000 per accident for bodily injury and $10,000 for property damage. It is not until these drivers are involved in accidents caused by an uninsured or underinsured motorist and they have to pay for their own damaged car or bodily injuries that they realize how important adequate insurance is.

Purchasing higher limits of UM/UIM coverage will lower the risk of no liability coverage in the event of a major injury. You may even want to consider purchasing umbrella insurance.

The Poor Economy is No Reason to Go Without Insurance

You may be frustrated with car insurance premiums, but there are ways to address rising costs. This e-mail address is being protected from spambots. You need JavaScript enabled to view it   to discuss these items:

• If you have your home and auto insurance with the same company, are you getting a discount?
• Does my coverage take full advantage of the discounts offered by my company?
• I have more than one car; am I getting a credit?
• Does it make sense to change my deductibles?
• Do my cars really need physical damage coverage insurance? (An important consideration for older vehicles)
• Do lifestyle choices such as drinking or smoking affect my premium?
• My son or daughter is on the honor roll, does this affect my premium?
• Did you know that my car has special security features?
• Does the company have accurate information on how often and how far I drive?
• Is my vehicle charged an additional premium because of its type or performance?
• Do I qualify for a loss-free history or policy longevity discount?

Information from Insurance Journal. 

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