Insurance Center

Wisconsin law requires that every driver maintain financial responsibility. This means that the driver, whether through a bond or by purchasing automobile insurance, has the ability to pay for damages s/he may cause if at fault in a motor vehicle collision.

What Is Insurance?

Motor vehicle insurance is a type of insurance policy covering damages both to and by that driver's automobile. The policy usually covers such things as the repair or replacement of the vehicle. The policy may also cover medical costs incurred by the driver or other parties involved in the crash.

In Wisconsin, you must purchase auto insurance from a dealer or broker licensed to sell insurance in Wisconsin.

Insurance Agent or Broker?

An insurance agent usually works for one particular insurance company and will be the person you meet with each time you need to make an insurance purchase or a change in your policy. Many people keep one insurance salesperson for many years and use the same company of several different insurance needs.

Insurance brokers are licensed insurance agents who work independently, and can legally sell insurance policies from any one of a number of insurance companies. Insurance brokers are usually the best bet if you want to get the best insurance coverage for your money.

But It Wasn't My Fault!

If you are in a crash that is not your fault, that's when the other driver's insurance covers the damage to your vehicle and any medical bills if you or others have injuries. Rather than these expenses having to be paid directly by the other party, who may or may not have funds to cover them, it becomes the responsibility of the insurance company to pay for damages.

Proof Not Required

Unlike some states, Wisconsin does not require drivers to show proof of insurance if they wish to renew their driver's license or register motor vehicles, but that does not mean that insurance, or another form of financial responsibility, is not required.

When is Proof of Insurance Required?

• To reinstate a driver's license if that person's driving privileges or vehicle registration has been revoked.

• To reinstate driving privileges after a license suspension, if the suspension was due to a damage judgment or for an infraction of the safety responsibility law.

• For drivers under the age of 18 in lieu of having a sponsor.

How Much Insurance?

You will be required to show proof of liability of at least $25,000 for personal injury, $50,000 for death, and $10,000 for property damage by filing a form called the "SR-22 certificate," which can be issued from an insurance company.

Insurance Options

If you are required to show proof of insurance, you must purchase your policy from an insurance company that is licensed to do business in Wisconsin, and you must have the insurance company provide you with an SR-22 policy, which means that the insurance company will automatically notify the DMV if you should allow your insurance policy to lapse of if you cancel your policy.

If you choose to not purchase an insurance policy, in some cases, you may be permitted to post a bond from an insurance company, or you may place a cash deposit of $60,000 with the Wisconsin Department of Transportation.

Insurance Prices

Insurance policy prices are based on more than just your car type, age and driving record. Such things as how far you drive to and from work, your neighborhood, and even whether or not you smoke can come in to consideration when figuring an insurance policy price.

There's not too much you can do about your neighborhood's reputation, and it's hard to find work near home, but you can keep your insurance prices manageable by obeying the law and avoiding traffic tickets. A driver with a bad driving record may pay as much as double what his next-door-neighbor pays, even if they work for the same company, drive the same miles each week, and have the exact same car and no teen drivers or any other extras.

Costs and Payment Options

Insurance costs are usually quoted as an annual figure; the price you are quoted is the total price for one year's coverage. One year is the normal term for most insurance policies.

Depending on the company or broker you use, you could be offered other payment options including making two, four, six or even 12 payments over the course of the year of the policy. Pay the annual quote if possible, as the insurance companies do not break up those policy payments for free. Do the math on the figures provided by the agent or broker and you'll be able to see just how much they are charging you to allow you to pay over time.

Don't struggle to pay a premium in full, though, just because of a small fee to split up payments; it may be easier on your budget to take the multiple payment options, even if it does cost a little more.

Shop Around

Like anything else in life, don't settle for the first insurance policy you see. Shop around, talk to a broker, and get a few quotes before you settle with one insurance company.

If an agent or broker tells you that his or her policy is the only one you will qualify for, due to age or driving record, run away! Do some more shopping and chances are, you'll find the coverage you need from at least two or three other carriers. Get several quotes before you seal a deal.