Key Takeaways
- Wisconsin requires minimum liability coverage of 25/50/10 for all registered vehicles
- Uninsured motorist bodily injury coverage (25/50) is mandatory in Wisconsin
- Wisconsin follows a tort (at-fault) system with modified comparative negligence
- Drivers must carry proof of insurance and show it upon request by law enforcement
- Penalties for driving without insurance include fines up to $500 and license suspension
Wisconsin Auto Insurance Requirements
Wisconsin law requires all drivers to maintain minimum auto insurance coverage. The state uses a traditional tort (at-fault) system for determining liability in auto accidents.
Minimum Liability Coverage: 25/50/10
| Coverage Type | Per Person | Per Accident | Property Damage |
|---|---|---|---|
| Bodily Injury | $25,000 | $50,000 | - |
| Property Damage | - | - | $10,000 |
What These Limits Mean
- $25,000 Bodily Injury per Person: Maximum paid for injuries to one person
- $50,000 Bodily Injury per Accident: Maximum paid for all injuries in one accident
- $10,000 Property Damage: Maximum paid for damage to another person's property
Mandatory Uninsured Motorist Coverage
Wisconsin requires uninsured motorist bodily injury (UMBI) coverage:
| Coverage | Minimum Limits |
|---|---|
| UMBI per Person | $25,000 |
| UMBI per Accident | $50,000 |
UMBI Coverage Protects Against
- Accidents with uninsured drivers
- Hit-and-run accidents
- Underinsured motorists (with UIMBI)
Additional Coverage Options
Physical Damage Coverage (Optional)
| Coverage | Description |
|---|---|
| Collision | Damage from collision with another vehicle or object |
| Comprehensive | Damage from theft, vandalism, weather, animals |
| Rental Reimbursement | Cost of rental car while yours is repaired |
| Towing/Labor | Roadside assistance and towing |
Medical Payments (MedPay)
- Pays medical expenses regardless of fault
- Covers driver and passengers
- Optional in Wisconsin
Underinsured Motorist Coverage (UIMBI)
- Covers when at-fault driver has insufficient limits
- Highly recommended in Wisconsin
- Same limits as UMBI
Exam Tip: Wisconsin requires 25/50/10 liability coverage AND 25/50 uninsured motorist bodily injury coverage. Memorize both requirements.
What are Wisconsin's minimum auto liability limits?
Wisconsin Tort System
Wisconsin follows a traditional at-fault (tort) system for auto insurance, not a no-fault system.
How the Tort System Works
- At-fault driver responsible: The driver who caused the accident is responsible for paying damages
- Third-party claims: Injured parties file claims against the at-fault driver's insurance
- Right to sue: Injured parties can sue for damages including pain and suffering
- No restrictions on lawsuits: Unlike no-fault states, there are no thresholds to meet before suing
Modified Comparative Negligence
Wisconsin uses a modified comparative negligence rule (51% bar rule):
| Your Fault Percentage | Can You Recover? |
|---|---|
| 0-50% | Yes - damages reduced by your percentage of fault |
| 51% or more | No - you cannot recover any damages |
Comparative Negligence Example
Scenario: $100,000 in damages, you are 25% at fault
- Your recovery: $100,000 × (100% - 25%) = $75,000
Scenario: $100,000 in damages, you are 51% at fault
- Your recovery: $0 (barred from recovery)
Joint and Several Liability
In Wisconsin:
- Defendants less than 51% at fault: Liable only for their percentage
- Defendants 51% or more at fault: Jointly and severally liable
Direct Action Against Insurers
Wisconsin allows injured parties to:
- Name and sue the at-fault driver's insurance company directly
- Include the insurer as a defendant in the lawsuit
- Make the jury aware of insurance coverage
Statute of Limitations
| Claim Type | Time Limit |
|---|---|
| Personal Injury | 3 years from accident |
| Property Damage | 6 years from accident |
Exam Tip: Wisconsin uses a modified comparative negligence system with a 51% bar. If you are 51% or more at fault, you cannot recover any damages.
Under Wisconsin's modified comparative negligence rule, what happens if you are 40% at fault in an accident?
Proof of Insurance Requirements
What Drivers Must Carry
- Insurance identification card (paper or electronic)
- Must show proof upon request by law enforcement
- Electronic proof on smartphones is accepted
When Proof is Required
- Traffic stops
- At the scene of an accident
- Vehicle registration renewal
- When filing accident reports
Penalties for Driving Without Insurance
| Violation | Penalty |
|---|---|
| Operating without insurance | Fine up to $500 |
| Failure to show proof at stop | Fine up to $10 |
| Fraudulent proof of insurance | Fine up to $5,000 |
| Repeated violations | Higher fines, longer suspensions |
Additional Consequences
- License suspension
- Vehicle registration suspension
- SR-22 requirement for reinstatement
- Difficulty obtaining future coverage
SR-22 Requirements
When SR-22 is Required
- After driving without insurance conviction
- After certain serious traffic violations
- After at-fault accident while uninsured
- DUI/DWI convictions
SR-22 Details
- Certificate of Financial Responsibility
- Filed by insurance company with DMV
- Required for 3 years typically
- Higher insurance premiums
Exam Tip: Wisconsin accepts electronic proof of insurance on smartphones. However, fraudulent proof of insurance carries a penalty of up to $5,000.
What is the maximum fine for operating a motor vehicle without insurance in Wisconsin?
Which coverage is mandatory in Wisconsin in addition to liability insurance?