Auto Insurance: Wisconsin's Mandatory Law

In the state of Wisconsin, auto insurance is mandatory for all drivers. The state has set minimum coverage requirements, which include liability coverage for bodily injury or death and property damage. Specifically, drivers in Wisconsin must have a minimum of $25,000 for bodily injury liability per person, $50,000 for total bodily injury liability per accident, and $10,000 for property damage liability per accident. The state also requires uninsured motorist coverage, which protects drivers in the event of an accident with an uninsured or hit-and-run driver. The minimum coverage limits for this are $25,000 per person and $50,000 per accident.

Wisconsin's minimum coverage liability limits

The state's minimum coverage requirements are meant to safeguard drivers from the financial consequences of a mishap. Wisconsin is an "at-fault" state, which means that the responsible party is held liable for any damages resulting from an accident. The at-fault driver's insurance will cover the costs of bodily injury and property damage, up to the policy limits.

While collision and comprehensive coverage are not mandated by Wisconsin, lending institutions may require them for financed or leased vehicles. These types of coverage can protect your investment in the event of non-collision-related incidents and collisions. If you own your vehicle outright, the choice to carry these coverages is up to you.

It's important to note that the cost of your premium can be influenced by whether the state operates on a fault or no-fault basis. As a fault state, Wisconsin typically holds the at-fault driver's insurance responsible for covering the costs of an accident.

The average annual cost of auto insurance in Wisconsin

In Wisconsin, the average annual cost of auto insurance varies depending on the level of coverage and other factors such as age, gender, driving record, and credit score. Here is an overview of the average annual and monthly costs for both full coverage and minimum coverage auto insurance in the state:

Full Coverage Auto Insurance:

The average annual cost of full coverage auto insurance in Wisconsin is approximately $1,004 to $1,516, with a monthly cost of around $84 to $126. This includes comprehensive and collision coverage, in addition to the state's minimum liability coverage. The cost varies depending on factors such as age, driving record, and credit score. For example, younger drivers in their 20s can expect to pay higher premiums, with rates decreasing as they gain more experience on the road.

Minimum Coverage Auto Insurance:

The average annual cost of minimum coverage auto insurance in Wisconsin is about $378 to $400, with a monthly cost of around $32 to $33. This includes the state's minimum liability coverage, which is $25,000 for bodily injury per person, $50,000 for bodily injury per accident, $10,000 for property damage, and uninsured motorist coverage of $25,000 per person and $50,000 per accident. The cost can vary depending on factors such as age, with drivers between 22 and 29 typically facing higher premiums due to their higher risk profile.

It's important to note that these averages may not reflect the exact cost of auto insurance for individuals, as rates can vary significantly based on personal factors and the insurance company. Additionally, Wisconsin drivers are encouraged to compare quotes from multiple insurance providers to find the most affordable rates and coverage options that best suit their needs.

What happens if you drive uninsured in Wisconsin

In Wisconsin, it is mandatory for all drivers to have car insurance or an accepted substitute and carry proof of coverage while driving. The minimum coverage amounts are $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident, and $10,000 for property damage liability per accident. Uninsured motorist bodily injury coverage of $25,000 per person and $50,000 per accident is also required.

If you are caught driving without insurance in Wisconsin, you could face several consequences. Firstly, you may be subject to a fine of up to $500. If you knowingly provide fraudulent proof of insurance, this fine increases to a maximum of $5,000. Your driving privileges will also be suspended, and you will need to pay a $60 reinstatement fee to get them back. Additionally, you will be required to file an SR-22 form, which typically results in higher insurance premiums.

If you are caught driving without insurance in an accident, the penalties can be more severe. In addition to the fines and fees mentioned above, your vehicle registration will be suspended for up to three years, and you will need to pay a $50 reinstatement fee. If you cause an accident while uninsured, the state can also suspend your driving privileges and car registration. However, you can avoid these additional penalties if you post a security deposit, sign an installment 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 driving without insurance in Wisconsin is a serious matter, and it is always recommended to maintain at least the state's minimum coverage to avoid these risks and ensure financial protection.

The cheapest companies for minimum coverage auto insurance in Wisconsin

Yes, auto insurance is mandatory in Wisconsin. The state has set minimum insurance coverage requirements that drivers must meet to legally operate a vehicle. These include liability insurance and uninsured motorist bodily injury coverage. The minimum liability limits in Wisconsin are often not enough to cover the cost of a major crash.

Erie

Erie has the most affordable full coverage and minimum liability policy quotes in Wisconsin. Their full coverage costs $83 per month, and their liability-only coverage costs $24 per month. Their rates are $45 and $18 cheaper per month, respectively, than the statewide average. Erie also has the most affordable car insurance for young drivers in Wisconsin.

USAA

USAA offers the most affordable average car insurance rates in Wisconsin, with an average monthly rate of $60.83. However, their policies are only available to current and former military members and their families.

Geico

Geico is a solid alternative for most drivers, offering competitive rates at an average of $71.42 per month. They also have the lowest average rates for young adult drivers aged 25.

American Family

American Family has the second-cheapest full coverage option at $105 per month, although Erie has better rates for minimum coverage. They also have a much better mobile app than Erie, so they may be preferable if you prefer to manage your policy online.

Auto Club Group

Auto Club Group has the cheapest car insurance in Wisconsin, with an average annual rate of $903 for full coverage.

Integrity

Integrity offers the cheapest rates in Wisconsin for minimum coverage car insurance for a 35-year-old driver with a clean driving record, at $147 per year on average.

AAA

AAA has the cheapest minimum coverage option at $195 per year, or $16 per month.

Travelers

Travelers has the cheapest full coverage option for 20-year-old drivers with clean driving records, at $1,794 per year.

State Farm

State Farm has the most affordable rates in Wisconsin for drivers with poor credit scores, at $118 per month for full coverage.

Secura

Secura has the cheapest sample rate for drivers with an accident on their record, at $1,001 per year on average.

Western National

Western National has the cheapest auto insurance for 20-year-old drivers after a DUI, at $662 per year on average.

Rockford Mutual

Rockford Mutual has the cheapest minimum coverage option for 30 and 40-year-old drivers, at $236 per year.

Hastings Mutual

Hastings Mutual has the cheapest full coverage option for 30-year-old drivers, at $952 per year. They also have the cheapest rates for drivers with poor credit in several age groups.

Progressive

Progressive has the cheapest full coverage option for 50-year-old drivers with a DUI, at $1,724 per year.

What liability insurance covers

In Wisconsin, auto insurance is indeed mandatory, with drivers required to carry minimum coverage. This includes liability insurance, which covers injuries and damages caused by the policyholder if they are at fault in an accident. Here's a detailed overview of what liability insurance covers:

Bodily Injury Liability Coverage:

Liability insurance covers bodily injuries to others if you are at fault in an accident. In Wisconsin, the minimum coverage required is $25,000 per person for bodily injury and $50,000 per accident. This means that if you are found responsible for a collision, your insurance will cover the medical expenses and injury claims of the other driver and their passengers, up to these specified amounts.

Property Damage Liability Coverage:

In addition to bodily injuries, liability insurance also covers damage to another person's property if you are at fault. The minimum property damage liability coverage in Wisconsin is $10,000 per accident. This includes repairs or replacement of the other driver's vehicle, as well as any other property damaged in the accident, such as fences, buildings, or lamp posts.

Uninsured Motorist Coverage:

Liability insurance typically includes uninsured motorist coverage, which protects you if you are in an accident with a driver who does not have insurance or in a hit-and-run situation. In Wisconsin, the minimum uninsured motorist coverage is $25,000 per person and $50,000 per accident for bodily injury. This coverage ensures that your medical claims will be paid even if the other driver is uninsured or cannot be identified.

Underinsured Motorist Coverage:

Liability insurance may also provide underinsured motorist coverage, which comes into effect when the at-fault driver has insufficient insurance to cover the full extent of the damages. This coverage ensures that you can still receive compensation for your injuries or property damage when the other driver's policy limits are exhausted.

Exclusions and Additional Coverage:

It's important to note that liability insurance does not cover damage to your own vehicle or injuries you sustain in an accident. For that, you would need to purchase additional coverages such as collision insurance or personal injury protection (PIP). Liability insurance also typically excludes coverage for certain situations, such as weather-related accidents or damage caused by animals. You may have the option to purchase additional coverage for these scenarios.

While the minimum liability insurance requirements in Wisconsin provide a basic level of protection, it is recommended that drivers consider their individual needs and opt for higher coverage limits to ensure adequate financial protection in the event of a serious accident.

Frequently asked questions