Yes, car insurance is mandatory in Wisconsin. State law requires all drivers to carry minimum liability coverage. The mandatory minimums are $25,000 for injury or death of one person, $50,000 for injury or death of two or more people, and $10,000 for property damage in a single accident. This is often abbreviated as 25/50/10 coverage.
Driving without the required proof of insurance can lead to significant penalties. For a first offense, you could face a fine of up to $500. If you're caught a second time within a three-year period, the fine increases to a minimum of $500 and you could have your driver's license suspended for up to three years. Law enforcement may also impound your vehicle.
While meeting the state minimums keeps you legal, it's often not enough to cover the full costs of a serious accident. Medical bills and vehicle repairs can easily exceed these limits, leaving you personally responsible for the difference. Most financial advisors recommend increasing your liability limits and considering additional coverage like uninsured motorist protection (also required in Wisconsin) and collision coverage.
| Requirement/Consideration | Minimum Amount / Details |
|---|
| Bodily Injury Liability (per person) | $25,000 |
| Bodily Injury Liability (per accident) | $50,000 |
| Property Damage Liability (per accident) | $10,000 |
| Uninsured Motorist Coverage | $25,000/$50,000 |
| First Offense Fine (no insurance) | Up to $500 |
| Subsequent Offense Fine | Minimum $500 |
| License Suspension (subsequent offense) | Up to 3 years |
| Recommended Higher Liability Limit | $100,000/$300,000 |
There are very few exceptions to this rule. The primary alternative is to qualify as a self-insurer, which involves proving financial responsibility to the state, an option generally only feasible for large companies with extensive fleets of vehicles. For the vast majority of drivers, purchasing a policy from a licensed insurer is the only practical way to comply with the law.
