Wisconsin Auto Insurance Requirements: What You Need To Know

As of June 1, 2010, Wisconsin requires all automobile owners to carry insurance on their vehicles. The minimum coverage liability limits are 25/50/10, meaning $25,000 for bodily injury per person, $50,000 per accident, and $10,000 for property damage. Drivers are also required to have uninsured motorist coverage of $25,000 per person and $50,000 per accident. The average annual cost for state minimum car insurance in Wisconsin is $378, or about $32 per month for a 40-year-old driver.

Wisconsin's minimum insurance requirements

Wisconsin requires drivers to have minimum car insurance coverage to protect against financial consequences in the event of a mishap. As an at-fault state, Wisconsin holds the responsible party liable for damages in an accident.

The minimum coverage liability limits in Wisconsin are 25/50/10. This means that drivers are required to carry a minimum of $25,000 for bodily injury liability per person, $50,000 per accident, and a $10,000 minimum for property damage liability per accident. In addition, drivers in Wisconsin must also have uninsured motorist coverage with minimum limits of $25,000 per person and $50,000 per accident.

The average annual cost for state minimum car insurance in Wisconsin is $378, which equates to approximately $32 per month for a 40-year-old driver. The exact cost of your premium may vary depending on your age, driving experience, and other factors.

While collision and comprehensive coverage are not mandated by Wisconsin's state minimum auto insurance requirements, lending institutions may require both collision and comprehensive insurance for financed or leased vehicles. If you own your vehicle outright, the choice to carry these coverages is yours. However, they can provide additional protection for your investment.

The cost of minimum coverage

Wisconsin requires drivers to have minimum car insurance coverage to protect against the financial consequences of a mishap. The state's minimum coverage liability limits are 25/50/10, meaning $25,000 for bodily injury per person, $50,000 per accident, and $10,000 for property damage. The state's minimum coverage requirements also include uninsured motorist coverage of $25,000 per person and $50,000 per accident.

The average annual cost of minimum coverage car insurance in Wisconsin is $403, which is approximately $34 per month for a 40-year-old driver. The monthly premium for a typical 40-year-old driver is around $32, varying with different providers. The two most affordable options for state minimum coverage auto insurance in Wisconsin are AAA, at $195 per year and $16 per month, and Erie, at $243 per year and $20 per month.

The cost of your premium can be influenced by whether the state operates on a fault or no-fault basis. Wisconsin is a fault state, meaning the at-fault driver's insurance typically covers the costs of bodily injury and property damage resulting from an accident.

While several factors affect the cost of your minimum car insurance, age is often a key determinant. In Wisconsin, drivers between the ages of 22 and 29 face the highest premiums because this group is considered by insurers to be more likely to be involved in accidents due to less driving experience.

Wisconsin does not mandate collision or comprehensive coverage as part of its state minimum auto insurance requirements. However, lending institutions may require both collision and comprehensive insurance on financed or leased vehicles. If you own your vehicle outright, the choice to carry these coverages is yours. Nevertheless, they can protect your investment against various non-collision-related incidents and collisions.

Cheapest companies for minimum coverage

When it comes to minimum coverage, Erie is the cheapest option in Wisconsin, with an annual premium of $243, or $20 per month. AAA is another affordable choice, costing $195 per year, or $16 per month. Rural Mutual is also mentioned as the cheapest company for minimum coverage by Bankrate.

The cost of your premium can be influenced by your age, with younger drivers often facing higher premiums due to their relative lack of driving experience. For example, in Wisconsin, drivers between the ages of 22 and 29 typically pay higher rates.

It's worth noting that while minimum coverage can help you meet legal requirements and keep premiums low, it might not provide sufficient protection in the event of a major accident. To better protect yourself financially, consider purchasing higher liability limits if you can afford to do so.

Additionally, minimum coverage only covers damages to other people's vehicles and property, not your own. If you want coverage for your own vehicle, you'll need to opt for full coverage, which includes comprehensive and collision insurance.

Add-on coverages

Yes, auto insurance is required in Wisconsin. As of June 2024, Wisconsin requires drivers to carry minimum auto insurance coverage to legally operate a vehicle. The minimum coverage includes $25,000 for bodily injury liability per person, $50,000 per accident, and $10,000 for property damage liability per accident. Drivers also need to have uninsured motorist coverage of $25,000 per person and $50,000 per accident.

While the state of Wisconsin does not mandate collision or comprehensive coverage, lending institutions may require both collision and comprehensive insurance for financed or leased vehicles. If you own your vehicle outright, you can decide whether to purchase these coverages. However, they can provide valuable protection against a range of non-collision incidents and collisions.

Comprehensive Coverage

Comprehensive insurance is an optional coverage that protects your vehicle from non-collision events such as theft, fire, or natural disasters. While it is not mandated by Wisconsin law, it can be a wise investment to safeguard your vehicle. Comprehensive coverage will pay for repairs to your car in the event of theft, fire, or hail damage, but it will not cover damages resulting from a collision.

Collision Coverage

Collision insurance is another optional coverage that pays for damage to your car from any accident, regardless of who is at fault. This coverage is typically required by lending institutions if you have a loan on your vehicle.

Uninsured/Underinsured Motorist Coverage

Uninsured/Underinsured Motorist Coverage will cover your medical expenses, lost wages, and repair costs if you are hit by a driver with no insurance or insufficient coverage. This type of coverage is especially important in Wisconsin, as approximately 13.3% of Wisconsin drivers were uninsured as of 2019.

Medical Payments Coverage

Medical Payments Coverage, or MedPay, is optional coverage that reimburses you for medical and funeral expenses after an accident, regardless of who is at fault. This coverage can help pay for deductibles and copays that your health insurance may not cover. The minimum coverage amount for MedPay in Wisconsin is $1,000 per accident.

Rental Car Reimbursement

Rental Car Reimbursement covers the cost of a rental car while your vehicle is being repaired after a covered event. This coverage does not include fuel, insurance, or other rental extras.

Towing and Labor Coverage

Towing and Labor Coverage pays for towing and basic roadside assistance costs when your vehicle breaks down. However, it does not cover more extensive repairs that need to be done at a garage.

Custom Parts and Equipment Coverage

This coverage safeguards any aftermarket enhancements made to your vehicle, such as custom wheels or a stereo system. It does not cover the original parts that came with your vehicle.

Accidental Death Coverage

Accidental Death Coverage provides a payout if you or a passenger dies or experiences certain injuries in a car accident. It does not cover non-accidental deaths or injuries.

Classic Car Insurance

Classic Car Insurance offers agreed-upon values for vintage or collector cars, tailored to their unique characteristics. This coverage is not intended for vehicles used for regular commuting.

Penalties for driving without insurance

Wisconsin requires all drivers to have car insurance or an accepted substitute, and they must carry proof of coverage while driving. If you're caught driving without insurance in Wisconsin, you could face serious penalties and fines. Here are the penalties for driving without insurance in Wisconsin:

Fines

If you're caught driving without insurance in Wisconsin, you could be fined up to $500. Additionally, if you fail to show proof of insurance at the time of a traffic stop or accident, you could be fined up to $10. These fines are meant to deter people from driving without insurance and to encourage compliance with the law.

License and Registration Suspension

If you're caught driving without insurance, your driver's license and vehicle registration may be suspended. This means you will lose your driving privileges and won't be able to legally drive your car until you reinstate your license and registration. Reinstating your license and registration will also incur additional fees, adding to the financial burden of driving without insurance.

SR-22 Requirement

After a violation, you may be required to file an SR-22 form, also known as a financial responsibility form, to reinstate your license. This form proves that you have the minimum required auto insurance. The SR-22 must be maintained for at least three years, and failure to keep it on file could result in your driving privileges being revoked again.

Increased Future Insurance Premiums

Driving without insurance can also lead to higher insurance costs in the future. Auto insurance companies consider maintaining continuous coverage when determining your premiums. A lapse in coverage will be viewed unfavourably and may result in increased premiums or the need to explore high-risk insurance policies, which are typically more expensive.

Vehicle Impoundment

In some cases, your vehicle could be impounded if you are caught driving without insurance. This means your car will be towed and held at an impound lot, and you will be responsible for paying the associated costs to get your vehicle back.

Fraudulent Proof of Insurance

If you knowingly provide fraudulent proof of insurance, you may face even more severe penalties. In Wisconsin, offering fraudulent proof of insurance can result in a fine of up to $5,000. This is a significant financial penalty and demonstrates the seriousness of driving without insurance in the state.

Frequently asked questions