Wisconsin Auto Law

ATTENTION ALL WISCONSIN DRIVERS!!!

Significant changes have been implemented in Wisconsin insurance law as a result of the passing of the budget bill by our legislature and signed into law by Governor Doyle. These changes will impact all Wisconsin drivers in terms of the level of coverage provided and the premiums they will be charged. Some of the changes are clear, others lack clarity. The final impact of these changes will not be known until they have been tested in court.

EFFECTIVE NOVEMBER 1, 2009

• The minimum required limit for Auto Medical Payments coverage increases to $10,000. This coverage may still be rejected in writing.
• The Auto Medical Payments limit can be increased (stacked) if an insured is injured by a vehicle as a pedestrian. The increased (stacked) limit is based on the number of vehicles carrying Auto Med Pay coverage and is limited to a maximum increase of three. This change cannot be rejected nor prohibited.
• The Auto Underinsured Motorist coverage becomes mandatory and, therefore, can no longer be rejected.
• The minimum required limit for both the Auto Uninsured Motorist and Underinsured Motorist coverage increases to $100,000/$300,000 split limit.
• The Auto Uninsured Motorist limits can be increased (stacked) in the event of a covered loss. The increased (stacked) limit is based on the number of vehicles carrying the Auto Uninsured Motorist coverage and is limited to a maximum of three. This change cannot be rejected nor prohibited.
• The Auto Underinsured Motorist coverage limits can be increased (stacked) in the event of a covered loss. The increased (stacked) limit is based on the number of vehicles carrying the Auto Underinsured Motorist coverage and is limited to a maximum of three. This change cannot be rejected nor prohibited.
• The Uninsured and Underinsured Motorist coverage forms can no longer contain any reducing clause language. This means the coverage limit will not be reduced based on other insurance that may also apply to the loss.
• The Uninsured Motorist coverage language can no longer require actual physical contact with another vehicle in order for coverage to apply to a loss. Coverage will now apply as long as an independent third party verifies the existence of the other vehicle involved in the accident.
• The Personal Umbrella coverage will automatically include Uninsured and Underinsured Motorist coverages unless one or both are rejected in writing by the policyholder. This coverage must be offered if Personal Umbrella coverage is desired.
• The Personal Umbrella Uninsured Motorist or Underinsured Motorist coverage limits can be increased (stacked) in the event of a covered loss. The increased (stacked) limit is based on the number of vehicles carrying the Personal Umbrella Uninsured Motorist or Underinsured Motorist coverage and is limited to a maximum of three. This change cannot be rejected if Personal Umbrella Uninsured and/or Underinsured Motorist coverage applies under the Personal Umbrella coverage and it cannot be prohibited.

EFFECTIVE JANUARY 1, 2010

• The required minimum Bodily Injury and Property Damage limits for ONLY those auto policies that have or require a financial responsibility filing will be $50,000/$100,000/$15,000.

EFFECTIVE JUNE 1, 2010

• The required minimum auto Bodily Injury split limit and Property Damage limit will increase to $50,000/$100,000/$15,000.
• Auto liability insurance will become mandatory. An insured will be required to provide proof of auto liability insurance (like a valid Auto ID card) if requested by traffic enforcement after being stopped for a primary traffic infraction. Failure to provide proof will result in a fine. The officer can issue a $10 ticket to those who have insurance but don’t have proof with them. Those who don’t have insurance can be fined up to $500.

A bulletin regarding the insurance statutory provisions contained in the 2009-2011 Wisconsin State Budget – 2009 Wisconsin Act 28 is now available for viewing at http://oci.wi.gov/bulletin.htm.