Wisconsin Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist in the state of Wisconsin?

• When it comes to auto insurance, the state of Wisconsin is unique. While Wisconsin law requires all drivers to maintain financial responsibility, financial responsibility doesn’t necessarily mean drivers must purchase auto insurance.
• In order to comply with Wisconsin financial responsibility laws, all drivers must show that they have the ability to pay for damages if he or she is found to be at fault in an accident. Driver’s can purchase liability insurance or place a cash deposit of $60,000 with the Wisconsin Department of Transportation. In some cases, you may even post a bond from an auto insurance company that’s licensed to sell insurance in Wisconsin.
• If you purchase liability insurance, you must purchase it from a broker or insurance company that’s licensed in the state of Wisconsin. State law requires that drivers carry the minimum amounts of $25,000 for personal injury, $50,000 for death, and $10,000 for property damage.
• Failure to provide proof is financial responsibility upon request can result in license and registration suspension.
• Wisconsin drivers must show proof of insurance when reinstating a driver’s license  after the license or vehicle registration has been revoked, to reinstate driving privileges after a license suspension, and drivers under the age of 18 (without a sponsor).
• In the state of Wisconsin, drivers do not have to show proof of insurance when renewing a driver’s license or registering a vehicle.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Wisconsin, your policy must include minimum liability coverage of:

$25,000 for personal injury,
$50,000 for death,
and
$10,000 for property damage

What are the Rental Car Insurance Requirements?

In the state of Wisconsin it is illegal to operate any motor vehicle without proof of financial responsibility, this includes rental cars. Rental cars must carry the minimum liability coverages required under Wisconsin law. It is important to keep in mind that most Wisconsin auto insurance policies include car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is not required in the state of Wisconsin.  Because Wisconsin is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. The recommended amount of Uninsured/Underinsured Motorist Coverage in the state of Wisconsin is $50,000/$100,000 per person/per accident.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Wisconsin, it is legal to exclude a member of your household from your policy. It is also legal for your auto insurance company to write a policy that excludes household members that may be considered high-risk due to driving history, etc. These exclusions are listed in the exclusions section of the policy, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. Because a household exclusion means that the excluded person will not be covered under any circumstances, including emergencies, it is extremely important to examine your auto insurance policy carefully before signing on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If you allow your insurance to lapse in the state of Wisconsin, the insurance company will notify the department of motor vehicles. The DMV will notify you by mail with a set amount of time to provide proof of financial responsibility. If you fail to provide proof or financial responsibility, your license and registration will be suspended/revoked.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Wisconsin, it is legal for auto insurers to use Personal Credit History to help determine which products they will offer as well as rates. Your Personal Credit History may also be used to determine whether you will be making monthly or quarterly payments or if you will be required to pay the entire premium upfront. Your Personal Credit History and credit score is also used to create an “insurance risk score.” This score also helps determine your auto insurance rates. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. That said, Personal Credit History is not the only assessment tool Wisconsin auto insurance companies may use. They also consider age, gender, where you live, car make and model, how much you drive, and driving record.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Wisconsin follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because Wisconsin is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, Wisconsin resident’s average insurance premium was approximately $590, the 45th most expensive in the nation. This was down 4.1% from the previous year. The national average was $817.

Sources

Insurance Information Institute

Wisconsin Commissioner of Insurance