If you’re looking to cut costs, you may start looking at what car insurance coverage is essential. It’s important to understand what each coverage does and what your other options are. Keep reading to learn more.
Bodily Injury Coverage
Bodily injury coverage is a liability coverage. It would cover the other driver’s medical expenses and lost wages due to their injuries if the accident were your fault. It does not cover your own medical bills or lost wages. Remember, liability means something that someone else can sue you for.
In Wisconsin, you need to have bodily injury limits of at least $25,000 per person and $50,000 per accident. Keep in mind that your liability for a serious accident can be far above these limits, and you could be sued for anything above your insurance limits. To protect your home and other assets, you’ll want to ask your insurance agent how much coverage you really need.
Property Damage Coverage
Property damage coverage is another liability coverage. It pays to fix the other driver’s car or any buildings or other objects you may have hit. It does not cover damage to your own car.
Wisconsin only requires $10,000 in property damage coverage. However, many cars are worth more than that, and you’d be responsible for any amount of insurance that doesn’t pay if you were at fault. Again, you may choose to purchase higher limits to give yourself adequate protection.
Uninsured and Underinsured Motorist Coverage
Uninsured and underinsured motorist coverage protects you when the other driver didn’t have insurance. Even though the law says everyone needs to have insurance, about 15% of drivers both in Wisconsin and nationally drive without insurance. In some states, that number is even higher. In addition, you could find yourself in a situation where your losses due to an accident far exceed the other driver’s insurance limits. You could sue for the difference, but you’d need to pay your lawyer from the amount you win, and the other driver may not have any money for you to collect even if you do win.
Uninsured and underinsured motorist coverage essentially replaces the other driver’s liability coverage. In Wisconsin, all drivers are required by law to carry at least $25,000 in UI/UIM coverage per person and $50,000 per accident. These limits replace the other driver’s bodily injury coverage. Uninsured motorists property damage isn’t mandatory, but you should see if your insurance company includes it or makes it available as a separate option.
What if You Need to Cut Your Insurance Costs?
If you need to cut your insurance costs, there are a few things you can try.
- While you don’t want to cut essential coverage, review your financial situation with your insurance agent to see if your limits are too high or if you have duplicate coverage from multiple insurance products.
- If you were impacted by COVID-19, check to see if your insurance company is offering refunds or discounts due to fewer people driving during this time.
- See if you can switch to a different payment schedule to stretch out your payments or get a discount for paying sooner.
- Consider increasing your deductible if you have the savings to cover it.
Ask Your Insurance Agent
Your independent insurance agent is here to help you. To learn more about what coverage is essential and how to save money, talk to Wolfgram Insurance today.