Most drivers are aware that Wisconsin law requires all vehicles operating on a state highway or road to have liability insurance coverage. (Wis. Stat. § 344.62) What is less widely known is that Wisconsin law also prescribes the mandatory minimum amount of coverage required for each vehicle. Wisconsin statute § 344.01(d) dictates that each vehicle must have liability coverages of:
- $25,000 (for one person) for bodily injury or death from an accident
- $50,000 (for two or more people) for bodily injury or death from an accident
- $10,000 for property damage to others from an accident
Vehicles are also required to have the same minimum coverages for injuries and deaths caused by uninsured motorists.
What Do the Mandatory Minimum Coverage Amounts Actually Mean?
The requirement to have $25,000 for one person’s injuries or death, and $50,000 for two or more people’s injuries or death applies to liability situations—where the driver of that vehicle is “at-fault.” The coverage also applies if the driver (or any passenger) of the vehicle is injured or dies due to a collision caused by an uninsured motorist. The $10,000 minimum coverage for property damage provides payments for damage caused to another person’s vehicle or other property.
These coverage amounts are collectively referred to as the state minimum policy limits. Policy limits define the maximum amount an insurance company is required to pay for each category of insurance. If you have the state minimum coverage and cause an accident where someone is injured:
- The most the insurance company will pay for injuries or death is $50,000 total, regardless of the number of people involved.
- The most any one person can receive for their injuries or death is $25,000.
- The most your insurance company will pay for damage you cause to another person’s vehicle or other property is $10,000.
It’s important to note that if you only have the state minimum coverage, you would not have any coverage for damage to your own vehicle—even if you are involved in an accident with an uninsured motorist.
Additional Auto Insurance Coverages
Medical Payments Coverage
Medical payments coverage is optional “no-fault” coverage that provides payment or reimbursement for medical expenses incurred after an accident. The “no-fault” aspect means you can use the coverage (up to your policy limit), regardless of who was at fault. This applies to both you and your passengers.
Underinsured Motorist Coverage
Underinsured motorist coverage provides additional recovery if you are injured in an accident and the at-fault driver’s insurance is insufficient to compensate you. To benefit from this coverage, your policy limits must exceed those of the at-fault driver. You must first receive the full amount available from the at-fault driver’s policy before receiving any additional compensation from your own.
In Wisconsin, underinsured motorist coverage typically includes a reducing clause, which means your policy limits are reduced by the amount received from the at-fault party’s insurance. For example, if the at-fault driver has $25,000 in liability coverage and you have $50,000 in underinsured coverage, you would only be eligible for an additional $25,000 after receiving the $25,000 from the at-fault driver’s insurer.
Umbrella or Excess Coverage
By law, umbrella or excess coverage provides at least $1,000,000 in liability coverage per person or per accident that exceeds certain required underlying liability insurance coverage (Wis. Stat. § 632.32(2)(d)). To purchase umbrella coverage, you may be required to have at least $250,000 or $500,000 in liability coverage.
Umbrella coverage can also be tied to uninsured and underinsured motorist coverages, but this must be specified when purchasing the policy.
How Much Coverage Should You Have?
Insurance is essential when you need it, but it is also an expense you must pay even if you never use it. Depending on your financial situation, it can be challenging to prioritize additional coverage beyond legal requirements. While having as much coverage as possible is ideal, you should aim for as much coverage as you can afford at any given time. Regularly reassessing your policy ensures you and your family remain protected.
How to Check Your Auto Insurance Coverage
When you purchase or renew your auto insurance, you should receive a declarations page listing your policy coverages. You can also check your insurance company’s online portal or app under the “coverages” section to review your selected coverage types and amounts.
Conclusion
Regardless of Wisconsin law, auto insurance is not just about liability—it also protects you, your family, and your passengers in case of an accident. Liability coverage applies to injuries you cause in an accident where you’re at fault. Uninsured, underinsured, and medical payments coverage help protect you if you are injured in an accident caused by someone else.
Reviewing and reassessing your auto insurance coverage now ensures you are prepared in case of an accident. Understanding your policy details in advance helps prevent unwelcome surprises when you need coverage the most.
The Turke & Steil LLP Personal Injury Team: Not your typical injury lawyers.