Q: I heard that auto insurance is now required in Wisconsin, but what else has changed?
A: Effective June 1, 2010, Wisconsin became the 49th state to mandate auto insurance for vehicle drivers, leaving only New Hampshire as the last holdout.
Previously, Wisconsin operated under a “financial responsibility” law that encouraged, but did not require, insurance coverage, instead requiring drivers to prove that they either had insurance coverage or had sufficient financial ability to pay for damages or injuries if they caused an accident. The minimum limits of insurance coverage in Wisconsin have not been changed since being set in 1982. With the new law, for insurance policies issued or renewed after January 1, 2010, and through at least December 31, 2016, the minimum limits of liability insurance coverage (pays for injuries or damages to another if you are legally liable) are now $50,000.00 per injured person, $100,000.00 per accident (for injuries or death to two or more people), and $15,000.00 per accident for damage to property. Also, the minimum limit for medical payment coverage (pays for medical and funeral expenses for drivers, passengers, and sometimes pedestrians injured in an accident) has been increased to $10,000.00 per person, and the minimum limits of both uninsured motorist coverage (pays for injuries or death if the accident is caused by an uninsured driver or owner) and underinsured motorist coverage (pays for injuries or death if the accident is caused by a driver or owner who has insufficient insurance coverage to fully compensate the injured person for his damages) have been increased to $100,000.00 per person and $300,000.00 per accident.
Under the new law, definitions of an uninsured motor vehicle and underinsured motorist coverage have been changed to provide for consistency and increased insurance coverage benefits. The ability now exists to increase insurance coverage for uninsured motorist coverage, underinsured motorist coverage, and medical payment insurance coverage by adding together the insurance policy limits for up to three owned-vehicles. Also, with the new changes, prior insurance policy provisions allowing for a reduction of uninsured motorist coverage and underinsured motorist coverage by amounts paid through other sources (such as workers’ compensation or disability benefits) have been eliminated. If drivers are unable prove auto insurance coverage at the time of a traffic stop or accident, law enforcement personnel may issue a fine of up to $500.00 for not having insurance coverage, or up to $10.00 for not having proof of insurance available in his or her immediate possession.
– Jonathan S. Safran of Samster, Konkel & Safran, S.C.
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