Insurance Requirements For Wisconsin Drivers: What You Need To Know

If you're a driver in Wisconsin, you're required by law to have a certain level of auto insurance. The minimum coverage requirements are $25,000 of bodily injury liability coverage per person, $50,000 of bodily injury liability coverage per accident, and $10,000 of property damage liability coverage per accident. Uninsured motorist coverage is also mandatory, with minimum coverage of $25,000 per person and $50,000 per accident. While these are the legal minimums, drivers can opt for more coverage to better protect their finances and property.

Bodily injury liability insurance

In Wisconsin, liability car insurance is mandatory for all drivers. This includes bodily injury liability insurance, which covers the medical expenses of the other driver and their passengers in an accident that you are deemed at fault for. It also covers any legal fees incurred.

The minimum bodily injury liability coverage in Wisconsin is $25,000 per person and $50,000 per accident. This means that if you are found to be at fault in a car accident, your insurance company will pay up to $25,000 for each person injured in the other car, and up to a total of $50,000 for all injuries in the other vehicle. This coverage is designed to protect you from financial hardship in the event of an accident, as medical bills and legal fees can quickly add up.

While the minimum coverage requirements in Wisconsin are clear, insurance experts recommend purchasing more coverage if you can comfortably afford it. This is because the minimum amount may not be sufficient to cover all damages in the event of a serious accident. The "right" amount of insurance depends on your personal financial situation and the value of your assets. By purchasing higher levels of coverage, you can further protect yourself and your family.

In addition to bodily injury liability insurance, Wisconsin also requires drivers to have property damage liability insurance and uninsured motorist coverage. Property damage liability insurance covers the cost of repairing the other driver's car and any other property damaged in an accident, while uninsured motorist coverage pays for medical claims if you are in an accident with a driver who does not have insurance or in the case of a hit-and-run.

Property damage liability insurance

It is important to note that the minimum coverage required by law may not be sufficient for all drivers. The "right" amount of insurance depends on your personal assets and the level of protection you need. If you can comfortably afford it, it is generally recommended to purchase a higher level of coverage than the minimum required. This will provide you with additional financial protection in the event of an accident.

In addition to property damage liability insurance, there are other types of auto insurance that are required or optional in Wisconsin. Uninsured motorist coverage and liability coverage for bodily injury or death are also mandatory, while medical payments coverage, collision insurance, and comprehensive insurance are optional. It is always a good idea to review your insurance policy and understand the types and amounts of coverage you have to ensure that you are adequately protected.

When purchasing auto insurance in Wisconsin, it is important to shop around and compare different insurance companies and policies. By doing so, you can find the best coverage for your needs at a price that fits your budget. It is also recommended to review your policy regularly and make any necessary adjustments to ensure that you maintain the appropriate level of coverage.

Uninsured motorist coverage

In Wisconsin, uninsured motorist coverage is a mandatory component of any auto insurance policy. This coverage protects individuals who are legally entitled to compensation for bodily injury, death, sickness, or disease resulting from an accident with an uninsured driver. The minimum amount of uninsured motorist coverage required in Wisconsin is $25,000 per person and $50,000 per accident. This means that if you are in an accident with a driver who does not have insurance, your insurance company will provide coverage for you and your passengers, up to these specified limits.

It is important to note that uninsured motorist coverage only applies when the other driver involved in the accident does not have insurance. If the other driver has insurance but does not have sufficient coverage to pay for your medical and repair costs, you would then rely on underinsured motorist coverage. While underinsured motorist coverage is not mandatory in Wisconsin, insurance companies are required by state law to offer it to you. This type of coverage ensures that you are protected if the at-fault driver's insurance limits are insufficient.

When purchasing auto insurance in Wisconsin, it is essential to understand the difference between uninsured and underinsured motorist coverage. While both types of coverage protect you financially in the event of an accident, they apply to different scenarios. Uninsured motorist coverage kicks in when the other driver has no insurance, while underinsured motorist coverage comes into play when the other driver's insurance limits are too low. By understanding these distinctions, you can make informed decisions about the level of coverage that best suits your needs.

Underinsured motorist coverage

In Wisconsin, underinsured motorist coverage is optional but commonly recommended. This type of coverage protects you and your passengers if you are hit by a driver who doesn't have enough insurance to cover your medical and car repair bills. This can include situations where the at-fault driver has some liability insurance but their policy limits are insufficient to cover the full extent of the damages incurred.

Under Wisconsin law, insurance companies must offer you underinsured motorist coverage, but you have the option to reject it in writing. If you choose to include underinsured motorist coverage in your policy, you are required to purchase a minimum of $50,000 in coverage per person and $100,000 per accident. This coverage ensures that you have financial protection in the event that the other driver's insurance is insufficient to cover your expenses.

It's important to note that underinsured motorist coverage is different from uninsured motorist coverage, which is mandatory in Wisconsin. Uninsured motorist coverage protects you if you are in an accident with a driver who does not have any insurance at all. On the other hand, underinsured motorist coverage comes into play when the at-fault driver has insurance but it is not sufficient to cover all the damages.

When deciding whether to include underinsured motorist coverage in your auto insurance policy, it's important to consider the potential costs of an accident. Medical bills and vehicle repairs can quickly add up, and if the at-fault driver doesn't have enough insurance, you could be left with significant out-of-pocket expenses. By including underinsured motorist coverage, you can have peace of mind knowing that you have additional financial protection in the event of an accident.

While it is an optional coverage, underinsured motorist protection can provide valuable financial security in the event of an accident with a driver who has insufficient insurance coverage. It ensures that you and your passengers are taken care of, regardless of the other driver's insurance status.

Proof of insurance

In Wisconsin, it is mandatory to have car insurance or an accepted substitute, and drivers must carry proof of coverage while driving. This means that you must have an active auto insurance policy that meets the state's requirements and carry proof of this when driving.

The most common form of proof is an insurance ID card, which can be printed or electronic. This can be displayed on a smartphone, for example, using an app. If you are unable to provide proof of insurance when asked by a law enforcement officer, you will have to pay a $10 fine and send proof to the state's department of motor vehicles. If you are unable to provide proof because you do not have the proper amount of insurance, you will be fined up to $500 and have your driving privileges suspended.

Other Forms of Proof

There are other ways to prove financial responsibility, such as a surety bond or a real estate bond. A surety bond must be issued by a licensed surety company and be good for at least $60,000 in payments. A real estate bond requires the backing of two individuals who own real estate in Wisconsin and a combined $120,000 in stocks. These options, however, are not recommended as you will still be liable for damages in a car accident.

SR-22 Form

If you are asked by the state, your insurer will need to file an SR-22 form to prove you have the minimum required auto insurance. This is usually only necessary after a major driving violation. The SR-22 will need to remain on file for at least three years from the date of reinstating your license.

Fraudulent Proof of Insurance

It is important to note that providing fraudulent proof of insurance may result in a fine of up to $5,000.

Frequently asked questions