Major Changs in Automobile Insurance

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 damage

The 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.

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Major Changes in Automobile Insurance