Auto Insurance Requirements in Wisconsin
All drivers in Wisconsin must have an active auto insurance policy that meets state requirements. A valid policy includes $10,000 of property damage per accident, $25,000 of bodily injury liability coverage per person, $50,000 of bodily liability coverage per accident and the same amounts for uninsured motorist coverage.
Make sure you carry proof of coverage anytime you're driving, because law enforcement officers can ask for it during traffic stops and at the scene of an accident.
Wisconsin car insurance minimum requirements
Your Wisconsin car insurance policy must always include bodily injury, property damage and uninsured motorist coverage. Having a policy means your insurer will pay for certain expenses if you cause a car accident.
WI required car insurance coverage | WI required minimums |
|---|---|
|
Bodily injury (BI) | $25,000 per person/$50,000 per accident |
|
Property damage (PD) | $10,000 per accident |
|
Uninsured motorist bodily injury (UMBI) | $25,000 per person/$50,000 per accident |
Bodily injury (BI) coverage pays for the other driver's medical expenses if you're at fault in an accident. Minimums in Wisconsin are $25,000 per person and $50,000 per accident. Any legal fees will also be covered under this portion of your policy.
Property damage (PD) coverage pays the other driver's car repair bills if you're at fault in an accident. It also pays for other types of property that you damage while driving. The minimum in Wisconsin is $10,000.
Uninsured motorist bodily injury (UMBI) covers you and your passengers — or anyone covered under your policy — if you're in an accident with a driver who doesn't have insurance. The minimum is $25,000 per person and $50,000 per accident, and you can't purchase coverage that is higher than your BI coverage. As of 2019, 13.3% of Wisconsin drivers were uninsured.
Optional car insurance coverage in Wisconsin
Under state law, Wisconsin car insurance companies must offer you underinsured motorist and medical payments coverage.
These are optional, and you may reject them in writing. Before you do, understand what they do for you.
Underinsured motorist bodily injury (UIMBI) covers you and your passengers if you're hit by a driver who doesn't have enough insurance to cover your medical and car repair bills. In Wisconsin, you'd need to buy at least $50,000 in coverage per person and $100,000 per accident.
Medical payments (MedPay) reimburses you for medical costs and funeral expenses after an accident, whether or not you were responsible. If you choose to add MedPay, the minimum coverage is $1,000 per accident. While this portion of your policy may overlap with health insurance, MedPay can help cover your health insurance plan's deductibles and copays.
Alternative proof of financial responsibility
Proof of financial responsibility means you can demonstrate that you have an active car insurance policy that meets or exceeds state minimums if asked for it. The most common form of proof is an insurance ID card. Some drivers may have to ask their insurer to file an SR-22 form, if the state requests it, in order to meet financial responsibility requirements.
However, if you don't have an insurance policy, there are three acceptable alternatives that may prevent your license and vehicle registration from being suspended.
Surety bond: You can fulfill the liability requirements by having a licensed surety company issue you a surety bond good for at least $60,000 in payments. This bond needs to be good for the same minimum coverages as a car insurance policy ($25,000/$50,000 bodily injury and $10,000 property damage). If you cannot fulfill the judgments against you, the surety company will cover the difference and bill you later. Surety bonds only satisfy your liability. You would still be responsible for paying for damages to your car and your medical bills.
Real estate bond: By getting backing from two other individuals, both of whom must own real estate in Wisconsin and a combined $120,000 in stocks, you may produce a real estate bond as your proof. A valid bond will have a lien on the real estate of at least $60,000 in payments (how much an insurance company will pay under a minimum policy) and will be approved by a court judge in the county where the real estate is located. You will need the court clerk to record it and send a copy to Wisconsin’s secretary of state. In case you cannot fulfill the payments you are responsible for in an accident, the two individuals listed will pay the debt in your place or have their real estate taken.
Cash deposit: The final alternative is to make a cash deposit of at least $60,000 with the Wisconsin Department of Transportation. The state can use this money to satisfy a court judgment against you if you cause a car crash. If the deposit is insufficient, you'll be responsible for making up the difference.
ValuePenguin's guide to SR-22 insurance in Wisconsin can help you understand the requirements and compare options.