• 17
  • May
    2010

As of June 1st, 2010, the State of Wisconsin will require all automobile owners to carry car insurance.  By making this policy change, the legislature is being proactive in protecting the physical, mental and financial well-being of the citizens of Wisconsin.  Wisconsin is the 49th state to adopt a mandatory auto insurance policy.

As of June 1st, 2010, the State of Wisconsin will require all automobile owners to carry car insurance.  By making this policy change, the legislature is being proactive in protecting the physical, mental and financial well-being of the citizens of Wisconsin.  Wisconsin is the 49th state to adopt a mandatory auto insurance policy.

Because these changes are fast approaching, we would like to offer some basic information about the new law.  As of June 1st, 2010, the following mandatory coverage limits will be in place:

  • Minimum Liability Coverage (for injury or death of 1 person): $50,000
  • Minimum Liability Coverage (injuries or deaths of 2+ people in 1 accident): $100,000
  • Minimum Liability Coverage (for damage to property): $15,000

The above coverage protects you and your family from claims by other individuals when you are involved in an auto accident.  The above coverage does not protect you or your car directly*, but rather will be accessed in the event you cause an automobile accident.  Without this type of coverage your personal assets and finances could be exposed to claims by individuals involved in the accident you caused.

Most importantly, the fact that this coverage is mandatory means you and your family will have coverage under the at-fault driver's insurance policy if you're involved in an accident that is not your fault.  The goal of the legislature in enacting these laws was to attempt to end situations where individuals are damaged through no fault of their own, and yet, they are made to bear the burden of the costs associated with those damages because the offending driver has no insurance.

The next classifications of mandatory auto insurance coverage are referred to as "uninsured" and "underinsured" motorist coverage.  The applicable limits for this coverage under the new law are:

  • Uninsured (UM) Motorist Coverage (injury or death of 1 person): $100,000
  • Uninsured (UM) Motorist Coverage (injuries/deaths of 2+ people in 1 accident): $300,000
  • Underinsured (UIM) Motorist Coverage (injury/death of 1 person): $100,000
  • Underinsured (UIM) Motorist Coverage (injuries/deaths of 2+ people in 1 accident): $300,000

First, it is important to define and differentiate between the above listed forms of coverage.  Uninsured Motorist Coverage (UM) is implicated when you are in an accident that was caused by a person who does not have insurance.  Remember, mandatory insurance is a very new law and there will still be people who fail to obtain the required coverage.  In that event, UM coverage will protect you and see to it that you are not left to pay for the damages caused by the negligent actions of another. 

Underinsured Motorist Coverage (UIM) is implicated when the damages you suffer in an accident, caused by another, exceed the limits of the at-fault driver's insurance.  If you suffer more than $50,000 in damages, but the other driver has purchased only a minimum, $50,000, policy, you will have additional insurance in place to cover your damages in excess of $50,000.  Both UM and UIM are vitally important and have therefore been made mandatory as part of the new law.

Lastly, it is important to know that there are monetary penalties in place for failing to purchase mandatory insurance.  The goal of the mandatory auto insurance law is to protect each individual in Wisconsin.  Hopefully, the number of encounters with uninsured motorists will steadily decline as the new law continues to take effect.  Ultimately, these laws will save the State of Wisconsin and the taxpayers money due to the current societal and governmental costs associated with damages caused by uninsured motorists.

We encourage you to share the above information with your family and friends, or feel free to direct them to our blog so they can read the information themselves.  Thank you for taking the time to read and consider this important information, we hope it is helpful, and we ask that you check back regularly to see our updated blog postings.

* Property damage coverage can be purchased separately on the same policy to protect your car.