Auto Insurance In Wisconsin: What's The Law?

Auto insurance is mandatory in Wisconsin, with drivers required to carry a minimum of $25,000 in liability coverage for bodily injury or death of one person in an accident, $50,000 total liability coverage for bodily injury or death, and $10,000 liability coverage for property damage per accident. These minimum requirements are meant to protect drivers from financial risk in the event of an accident, with the option to purchase additional coverage for added protection. Failure to comply with these requirements can result in penalties, including fines and suspension of one's driver's license.

Wisconsin's minimum insurance requirements

In Wisconsin, car insurance is mandatory for all drivers. The state has predefined minimum insurance requirements that drivers must meet. These requirements are not meant to restrict how much coverage you can or should get, but rather serve as a baseline for the necessary protection. Here are Wisconsin's minimum insurance requirements:

Liability Insurance

Liability insurance is mandatory for all drivers in Wisconsin. This type of insurance covers the other vehicle and its driver and passengers when you are at fault in an accident. The minimum requirements for liability insurance in Wisconsin are as follows:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident for more than one person
• $10,000 property damage liability per accident

Uninsured Motorist Coverage

Uninsured motorist coverage is also important in Wisconsin. This coverage pays for medical claims when the other driver is at fault and does not have insurance or in the case of a hit-and-run. The minimum requirement for uninsured motorist coverage is:

• $25,000 bodily injury liability per person
• $50,000 bodily injury per accident for you and your passengers

Underinsured Motorist Coverage

Underinsured motorist coverage is also recommended in Wisconsin. This coverage applies when the other driver has insufficient insurance to cover personal injuries. It comes into effect after the other driver's personal injury coverage has been exhausted. The minimum requirement for underinsured motorist coverage is:

• $50,000 bodily injury liability per person
• $100,000 bodily injury per accident for you and your passengers

Proof of Insurance

Wisconsin requires drivers to provide proof of insurance during a police stop. It is important to have valid insurance documentation with you when driving to comply with the law.

While these are the minimum requirements, you may choose to opt for more extensive coverage to protect yourself, your vehicle, and your passengers fully. It is advisable to discuss your specific needs with an insurance agent to determine the most suitable coverage options and explore any available discounts.

Penalties for driving without insurance

In Wisconsin, it is mandatory for all drivers to have car insurance or an accepted substitute, and they must carry proof of coverage while driving. If a driver is caught without proof of insurance or financial responsibility, they may face a $500 fine and a suspension of their driving privileges. If you can't provide proof of insurance at the time of the request, you may be given the chance to provide it to the state's department of motor vehicles later, but this usually comes with a $10 fine. If you fail to provide proof because you don't have the insurance, you will be fined up to $500 and have your driving privileges suspended.

To get your driving privileges reinstated, you must purchase an insurance policy and file an SR-22 certificate for a minimum of three years. You will also need to pay a $60 reinstatement fee. If your insurer drops your coverage during this three-year period, you must find a new insurer and file a new SR-22 form as soon as possible, or risk losing your driving privileges again.

If you are caught driving without insurance and are involved in an accident, you may face further penalties. According to the Wisconsin Safety Responsibility Law, the state can suspend your driving privileges and car registration if you cause an accident while uninsured. However, you can avoid these additional penalties if you post a security deposit, sign an instalment agreement, or submit a lease of liability proving you have settled the claims with the other party. Alternatively, you can request a safety responsibility hearing if you believe you were not at fault for the accident.

It is important to note that providing fraudulent proof of insurance can result in a fine of up to $5,000. Driving without insurance not only carries legal penalties but also exposes you to significant financial risk if you are involved in an accident.

Types of auto insurance coverage

Auto insurance policies usually include multiple types of coverage, each serving a different purpose. While some types of coverage are mandatory, others are optional and can be added to your policy for additional protection. Here are the common types of auto insurance coverage:

Liability Coverage

Liability coverage includes two types of car insurance: bodily injury liability and property damage liability. If you cause an accident, liability insurance covers the other driver's expenses for property damage, injuries, or even death. Bodily injury liability covers the medical costs resulting from an accident, while property damage liability covers the repair costs to vehicles, fences, mailboxes, or buildings. The coverage limits for liability insurance are typically represented as three numbers, such as 100/300/50, indicating the maximum payout per person, per accident, and for property damage, respectively.

Personal Injury Protection and Medical Payments Coverage

Personal injury protection (PIP) and medical payments coverage (MedPay) cover the medical expenses for you and your passengers after a car accident, regardless of who was at fault. PIP may also cover funeral expenses, child care, or lost wages due to injuries sustained in the accident. This type of coverage is mandatory in no-fault states.

Uninsured and Underinsured Motorist Coverage

Uninsured motorist coverage protects you financially if an uninsured driver hits you. Underinsured motorist coverage, on the other hand, comes into effect when the at-fault driver's insurance limits are insufficient to cover all the injuries or damage they caused. These coverage types may include uninsured motorist bodily injury coverage (UMBI), uninsured motorist property damage coverage (UMPD), underinsured motorist bodily injury coverage (UIMBI), and underinsured motorist property damage coverage (UIMPD).

Collision and Comprehensive Coverage

Collision and comprehensive coverage are optional but may be required in certain situations, such as leasing or financing your vehicle. Collision insurance covers damage to your car after an accident, regardless of fault, while comprehensive insurance covers damage to your car from incidents other than collisions, such as theft, storms, floods, vandalism, or hitting an animal. Both types of coverage are typically subject to a deductible, which is the amount you must pay out of pocket before your insurer pays the remaining cost.

Additional Coverage Options

In addition to the standard coverage types, there are several optional coverages you can add to your policy. These include rental reimbursement, roadside assistance, new car replacement insurance, full glass coverage, rideshare insurance, mechanical breakdown coverage, custom parts and equipment value coverage, classic car insurance, and business or commercial auto insurance. These additional coverages provide specialized protection for specific situations and can be tailored to your unique needs.

Is digital proof of insurance accepted?

Yes, digital proof of insurance is accepted in Wisconsin. In fact, all 50 states and Washington, D.C., allow drivers to show proof of insurance on their phones, according to the Property Casualty Insurers Association of America. This change has occurred relatively recently, with no states allowing electronic proof of insurance as recently as 2011. Now, every major auto insurer allows customers to display their ID cards using a mobile app.

While it is convenient to be able to present an electronic ID, it also saves money and time. Without proof of insurance, you may be issued a ticket and have to go to court to demonstrate that you are insured. This can result in court fees and the need to take time off work.

It is worth noting that some states, like Massachusetts, do not require a car insurance card as proof of coverage. Instead, vehicle registration certificates include insurance information. Similarly, in New Hampshire, most drivers are not required to carry auto insurance, so electronic ID cards are not necessary.

To ensure you are prepared to provide proof of insurance when needed, it is recommended to download your car insurer's mobile app, if available. You can also check with your insurer to confirm their specific offerings.

When might you need a car accident attorney?

While there is no legal obligation to hire an attorney after a car accident, doing so can help you navigate the complexities of insurance claims and personal injury lawsuits. Here are some scenarios where you might need a car accident attorney:

Severe Injuries or Long-Term Disabilities

If the accident resulted in serious injuries, ongoing medical treatment, or long-term disabilities, a car accident attorney can help you seek the compensation you deserve. They will guide you through the legal process while you focus on your recovery.

Unclear Liability or Complex Scenarios

If fault hasn't been clearly established, or if there are multiple parties involved, an attorney can help protect your interests and navigate complex legal issues. They will investigate the accident, gather evidence, and establish liability.

Uninsured or Underinsured Drivers

If your accident involves an uninsured or underinsured driver, an attorney can assist in seeking compensation through your own insurance policy's uninsured motorist clause. They can help evaluate your losses and explore all available options.

Significant Medical Expenses and Lost Wages

If you are facing substantial medical bills and time off work due to your injuries, an attorney can help you recover these economic losses. They will work to ensure you receive fair compensation to cover your expenses.

Dealing with Insurance Companies

Insurance companies often prioritize their bottom line over your best interests. An attorney can handle all communication and negotiations with insurance companies, countering low settlement offers and advocating for your rights. They understand insurance laws and can negotiate on your behalf to maximize your compensation.

Statute of Limitations Concerns

If you are unsure about the time frame for filing a lawsuit, an attorney can help. They are knowledgeable about state statutes of limitations and will ensure your claim or lawsuit is filed within the required deadline.

In summary, while you may not need an attorney for every minor car accident, it is beneficial to seek legal representation when your case involves significant injuries, complex liability issues, insurance disputes, or potential litigation. A car accident attorney will provide valuable expertise and support, allowing you to focus on your recovery while they fight for your rights.

Frequently asked questions