Not Paying for Insurance Could Cost You


Wisconsin’s mandatory auto insurance law took effect June 1. All motorists operating vehicles in the state must carry proof of insurance, which police can ask for during any traffic stop. Failure to carry proof of insurance, usually in the form of a card from the insurer, means a $10 fine. Failure to have vehicle insurance carries a fine of up to $500. Offering proof of insurance that is found to be fraudulent may result in a fine of up to $5,000.

According to police estimates, the state has about 14% uninsured motorists.

According to an article on, the new rules and confusion over them have caused customers to flock to insurance offices statewide. Several agents said they’ve had double or triple the normal number of calls and visits about auto insurance this week.

Agents also have to explain the terminology of auto insurance and the types of coverage to customers who have never had it before. To add to the potential confusion, agents in some cases are telling drivers that the new state minimum coverage rules don’t really do enough to protect them. 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.
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.

There is no requirement that you provide proof of insurance when you obtain your driver license or are registering a vehicle, unless that information is requested by DMV and is a requirement before reinstatement of a driver license after a suspension or revocation.
Insurance agents acknowledge that the new insurance rules have customers complaining about prices. Advocates for the poor say people who now are driving without insurance will be even less able to afford it because changes in the law make minimum coverage more expensive. But 48 other states already had mandatory auto insurance. As of June 1, New Hampshire is the only state not mandating coverage.

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One Response to “Not Paying for Insurance Could Cost You”

  1. Articley Says:

    Thank you so much ……

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