When it comes to auto insurance, many Wisconsin drivers assume that meeting the state’s minimum requirements is enough in case of an accident. Legally, that may be true. But from an attorney’s perspective, minimum coverage often leaves drivers financially exposed after a serious auto accident. Understanding what coverage to add, and what might not be necessary, can help protect both you and your finances in the future.
Wisconsin’s Minimum Auto Insurance Requirements
Wisconsin law requires all drivers to carry auto insurance. Policies must include a minimum of:
Liability coverage
- $10,000 for property damage
- $25,000 per accident involving a single person
- $50,000 per accident involving more than one person
Uninsured motorist (UM) coverage
- $25,000 per person
- $50,000 for two or more people (Bodily injury only)
These limits are legally required, but they are sometimes not enough to cover the true cost of a serious crash. A single emergency room visit, surgery, or extended physical therapy can exceed these amounts quickly.
Auto Insurance Coverage Wisconsin Attorneys Commonly Recommend
While every situation is different, personal injury attorneys encourage drivers to consider the following additions or upgrades to their policies.
1. Increase Your Liability Limits
One of the most important steps you can take is raising your liability coverage above the state minimum. Higher limits help protect you if someone is seriously injured or a lawsuit is filed after an accident.
From a legal standpoint, minimum coverage often provides a false sense of security. Increasing limits is usually far more affordable than people expect and far less expensive than defending a claim out of pocket.
2. Underinsured Motorist Coverage (UIM)
Wisconsin law requires uninsured motorist coverage, but underinsured motorist coverage is optional.
UIM coverage protects you if the at-fault driver has insurance, but not enough of it. Attorneys frequently see cases where the other driver’s policies are exhausted quickly, leaving injured victims without adequate compensation unless they have UIM coverage.
This coverage is important for medical expenses, lost wages, and ongoing care after serious injuries in Wisconsin auto accidents.
3. Collision and Comprehensive Coverage
Collision coverage pays for damage to your own vehicle after an accident, regardless of who was at fault. Comprehensive coverage protects against non-collision events such as theft, vandalism, severe weather, or animal strikes.
Attorneys often recommend these coverages when a vehicle has significant value or would be difficult to replace. Without them, drivers may be forced to pay for repairs or replacement out of pocket while liability issues are still being resolved.
4. Medical Payments Coverage (MedPay)
Medical payments coverage helps pay medical expenses for you and your passengers after an accident, regardless of fault.
This coverage can be useful for covering deductibles, co-pays, or immediate medical bills while insurance claims are pending. Attorneys often view MedPay as a practical tool to reduce financial stress following an accident.
5. Umbrella Insurance
The best thing to do is get the limits you can afford and then add a $1 million umbrella coverage. These policies are often surprisingly affordable and offer important extra liability coverage for little cost compared to the assets it can safeguard.
Umbrella insurance generally provides liability coverage for:
- Injuries to others
- Damage to others property
- Certain lawsuits
- Personal liability situations
What Does Umbrella Insurance Cover?
Umbrella insurance provides coverage beyond the limits of your other insurance policies, or for claims that may not be covered by liability policies.
Coverage Depends on Your Situation
Not every optional coverage is necessary for every driver, and understanding what you can reasonably skip can help you balance protection with affordability.
When you might skip or minimize these certain coverages:
Collision and Comprehensive: If your vehicle is older and has minimal market value (generally under $2,000-$3,000), the cost of these coverages may exceed what you’d receive in a claim. In these cases, many drivers choose to self-insure and skip collision and comprehensive entirely.
Medical Payments Coverage (MedPay): If you already have strong health insurance with low deductibles and out-of-pocket maximums, additional MedPay coverage may be redundant. However, MedPay can still be valuable for covering health insurance deductibles immediately after an accident without waiting for liability to be determined.
High Umbrella Limits: While umbrella policies are often affordable, drivers with limited assets and minimal income may find that standard increased liability limits provide sufficient protection without adding umbrella coverage. Umbrella insurance becomes more important as your assets, home equity, and savings grow.
Why Being Underinsured Is a Common Problem
From a Habush attorney’s perspective, underinsurance is one of the most common issues seen in auto accidents. Many drivers assume their insurance will fully protect them, only to discover that policy limits are quickly exhausted when serious injuries are involved.
Once coverage runs out, individuals may be personally responsible for remaining costs, including medical bills and legal damages.