Law Office Report - Summer 2010
Major Changes in Automobile Insurance
Attorney Gerald M. O'Brien
In its most recent legislation, the Wisconsin legislature has adopted major changes in automobile insurance requirements. For the first time Wisconsin automobile drivers will be required to have automobile insurance in order to operate their vehicles. A number of other significant changes were included in this far-reaching bill. A summary of the effect of those changes follows.
What am I required to do to prove that I have the necessary coverage?
As of June 1, 2010, all operators of a motor vehicle must have proof that they have the required coverage. Anyone that does not have such a certificate should contact his or her insurance agent immediately to obtain one. A good practice is to put the certificate in the glove compartment of the vehicle so that it is always readily available.If I buy automobile insurance, what coverages are required in Wisconsin and what are the minimum limits I can purchase?
Your automobile insurance policy must provide the following minimum liability coverage:
$50,000 for injury or death of one person
$100,000 for injury or death of two or more people; and
$15,000 for property damageThe law also requires uninsured and underinsured motorist coverage each with minimum limits of $100,000/$300,000 for bodily injury coverage. You may want to protect your assets by purchasing more coverage than what is provided in the minimum policy required in Wisconsin. Higher limits are available for an additional premium.
What is covered under bodily injury liability coverage?
This coverage does not protect you or your car directly. If you cause an accident injuring other people, it protects you against their claims up to the stated amounts for medical expenses, lost wages, pain and suffering and other losses. It will also usually pay if the accident was caused by a member of your family living with you or a person using your own auto with your consent. It does not pay for bodily injury you may sustain.What is covered under property damage liability coverage?
Property damage liability coverage pays for any damage to the property of others up to the stated amount provided by the policy (i.e., a crushed fender, broken glass, or a damaged wall or fence). Your insurance will pay for this damage if you were driving your auto or if it was being driven by another person with your consent. Property damage liability also pays if you damage government property like a light pole or signpost, up to the limit you choose.What is uninsured motorist coverage?
Uninsured motorists (UM) coverage applies to bodily injury you, your family, and other occupants of your vehicle incur when hit by an uninsured motorist or hit-and-run driver. It also covers you and your family if injured as a pedestrian when struck by an uninsured motorist or hit-and-run driver. It protects you by making sure that money is available to pay for your losses that were caused by someone else. The minimum amount of coverage required by law is $100,000 per person and $300,000 per accident for bodily injury only.You may want to purchase more than the minimum coverage required by law if you feel the need for more protection. Uninsured motorist coverage does not cover your property damage and does not protect the other driver. Your insurer may sue the other driver for any money the insurer pays you because of the other driver’s negligence.
What is underinsured motorists coverage?
Underinsured motorists (UIM) coverage increases the bodily injury protection to you and the people in your car up to the amount of coverage you purchase if the at-fault driver’s insurance does not cover your bodily injury losses. The minimum limits of UIM coverage are $100,000 per person and $300,000 per accident.Your insurance agent will be familiar with the new law and should be able to answer any questions that you may have and make sure that you have the coverage required by the new law.