4015 80th St # F, Kenosha, 53142 • Phone: (262) 652-4070 • Fax (262) 652-2491
Frequently Asked Questions about:
Auto Insurance
Q1: Why Should I Buy Auto Insurance?
Q2: What happens if I do not have insurance and I have an accident?
Q3: Does Liability Insurance protect me and pay my attorney fees associated with an accident?
Q4: What is the Wisconsin Financial Responsibility Law?
Q5: What is Bodily Injury Liability Coverage?
Q6: What is Property Damage Liability Coverage?
Q7: What is Uninsured Motorist Coverage (UM)?
Q8: What is Underinsured Motorist Coverage (UIM)?
Q9: Are insurers required to notify policyholders who do not
have UIM coverage of its availability.
Q10: What is Medical Payments Coverage?
Q11: What does Collision coverage pay for?
Q12: What does Comprehensive coverage pay for?
Q13: What types of things are considered when determining my insurance premium?
Q14: What do I do if I have an auto accident?
Q15: How can I lower my car insurance premium?
Q16: What should I think about when buying car insurance?
Q17: Does my personal policy cover me when I rent a car?
Q1: Why Should I Buy Auto Insurance?
A1: If you cause an auto accident,
you may be responsible
for the losses of the
other people involved. A
claim may be made or a
lawsuit filed against you for
those losses. You may have
to pay not only for the property
damage you cause, but
also for the medical expenses,
lost wages, and
pain and suffering of any
injured person. The amount
of money you may have to
pay could be substantial.
Q2: What happens if I do not have insurance and I have an accident?
A2:
If you don’t have insurance, anything of value that you own,
including your home, savings, future wages, and other assets, may be taken to pay for losses by anyone involved in the accident (the other driver, any passengers, pedestrians, property owners, etc., etc.,).
Q3: Does Liability Insurance protect me and pay my attorney fees associated with an accident?
A3: Yes
Q4: What is the Wisconsin Financial Responsibility Law?
A4: This law is designed
to make sure that any motorist licensed to drive in Wisconsin has insurance or enough money to pay for
damages to others that may be caused by a motor vehicle.
These requirements may be met through insurance, a
surety bond, or self-insurance. Details are available at the
Department of Transportation, Motor Vehicle Division, Hill
Farms State Office Building, Madison, Wisconsin 53705,
http://www.dot.state.wi.us
Q5: What is Bodily Injury Liability Coverage?
A5: Bodily Injury Liability Coverage does not protect you or your car directly. If
you cause an accident injuring other people, it protects you
against their claims up to the stated amounts for medical
expenses, lost wages, pain and suffering, and other
losses. It will also usually pay if the accident was caused
by a member of your family living with you or a person using
your auto with your consent.
Q6: What is Property Damage Liability Coverage?
A6: Property damage liability coverage pays for any damage
up to the stated amount you cause to the property of others
such as a crushed fender, broken glass, or a damaged wall
or fence. Your insurance will pay for this damage if you
were driving your auto or if it was being driven by another
person with your consent. Property damage liability also
pays if you damage government property like a light pole
or signpost, up to the limit you choose.
Q7: What is Uninsured Motorist Coverage (UM)?
A7: Uninsured motorist coverage applies to bodily injury you,
your family, and other occupants of your vehicle incur when
hit by an uninsured motorist or hit-and-run driver. It also
covers you and your family if injured as a pedestrian when
struck by an uninsured motorist or hit-and-run driver. It
protects you by making sure that money is available to pay
for your losses that were caused by someone else. The
minimum amount of coverage required by law is $25,000/
$50,000 for bodily injury only. You may want to purchase
more than the minimum coverage required by law if you feel
the need for more protection. Uninsured motorist coverage
does not cover your property damage and does not protect
the other driver. Your insurer may sue the other driver for
any money the insurer pays you because of the other
driver’s negligence.
Q8: What is Underinsured Motorist Coverage (UIM) ?
A8: Underinsured Motorist Coverage (UIM) is an optional coverage that increases the bodily injury
protection to you and the people in your car up to the
amount of coverage you purchase. It becomes effective
when the party causing an accident has lower bodily injury
liability limits than your UIM limits. The maximum dollars
paid is then the difference between the two limits.
Q9: Are insurers required to notify policyholders who do not
have UIM coverage of its availability.
A9: Yes -
The minimum limits of
UIM coverage, if accepted after notification, are $50,000
per person and $100,000 per accident.
Q10: What is Medical Payments Coverage?
A10: This coverage pays medical or funeral expenses for you or
others injured or killed in an accident while riding or driving
in your auto. This includes all reasonable hospital, surgical,
chiropractic, x-ray, dental, professional nursing, prosthetic,
and rehabilitation expenses up to the limits of the
coverage.
Q11: What does Collision coverage pay for?
A11: Collision coverage
pays if your auto collides with an
object, including another car, or if it overturns. Your own
insurer will pay for such damage even if the collision is your
fault.
In addition, collision premiums are based on the make and
model year of your car. You should evaluate the current
market value of your car and your ability to afford a similar
car should it be destroyed before you purchase this
coverage. You may not need this coverage if your car
Q12: What does Comprehensive coverage pay for?
A12:
Comprehensive coverage pays for damage to your auto
from almost all other causes such as fire, vandalism,
water, hail, glass breakage, wind, falling objects, civic
commotion, or hitting an animal. Damage from striking a
deer is a relatively frequent accident in Wisconsin. It is
important to know that most policies cover hitting an
animal under comprehensive, not collision, insurance.
Comprehensive coverage also pays if your auto or parts of
it, are stolen. Flood damage is also covered. If you carry collision
without comprehensive coverage, you are not covered for
flood damage.
NOTE: If you borrow money from a bank or some other financial
institution to buy your car, the lender will probably require
you to purchase physical damage coverage to protect both
of your interests in the car.
Q13: What types of things are considered when determining my insurance premium?
A13: Your age, sex, and marital status /
Where you live. (Generally, people living in
metropolitan areas pay more than those in rural / less
congested places.) /
Your car - its year, make, and model (the less it costs to repair
or replace your vehicle, the lower the cost of your
premium).
How you use your car. business or pleasure /
Prior insurance coverage.
Q14: What do I do if I have an auto accident?
A14:When you are in an accident. There are 4 steps to take: First, notify the police. Second, exchange information with the other driver(s) involved in the accident. Third, contact your insurance company as soon as you possibly can. Fourth, do all of the required steps your insurance company asks you to do. For more information about filing a car insurance claim, see our auto resources section.
Q15: How can I lower my car insurance premium?
A15: There are a number of things you can do to lower your car insurance. They include, shopping around, asking for discounts on your current policy, holding multiple insurance policies with the same carrier, and raising your deductible. If you would like to get competitive quotes on your auto insurance use our auto quote section.
Q16: What should I think about when buying car insurance?
A16: Here are some basic things to consider when purchasing car insurance. First, decide what optional coverage's you want and need. Look at your situation and don't be fooled into buying something you don't need. Secondly, analyze the companies who are vying for your business. Make sure they are reputable and price competitive. Third, purchase the amount of liability insurance that is right for you.
Q17: Does my personal policy cover me when I rent a car?
A17: For this one, you must call your insurance company OR ask the agent from whom you are buying your new policy. Many states mandate that your insurance company provide coverage when you are renting a vehicle. Some insurance companies will only cover rental cars if you are on vacation, and not for business.
