Each state provides its own laws on auto insurance. Wisconsin has its own general provisions as required by their own law. However, in general, auto insurance can be defined as a contract of agreement entered into by and between an insurance company and an insured, may be an individual or a group. The contract is anchored on the insured paying a certain premium in exchange of the insurance company's promise to afford certain liability coverage as entered into in the policy contract.As provided by the Office of the Commissioner of Insurance (OCI) in the State of Wisconsin, auto insurance in Wisconsin becomes mandatory after June 1, 2010, with several exceptions in limited situations which requires other security in the form of a surety bond, personal funds or certificate of self-insurance. Being mandatory, the law requires that auto insurance policy must provide minimum liability coverage of $50,000 for injury or death of a person; $100,000 for injury or death of two or more persons; and $15,000 for damage of property. The law further requires bodily injury coverage of $100,000/$300,000 as minimum limit for uninsured and underinsured motorist. However, anyone can purchase as many coverage as he wants. Wisconsin provides minimum limit and allows additional premiums in higher limits.
To understand how auto insurance in Wisconsin works, let us discuss each coverage briefly:
-Bodily injury liability covers your liability to anybody you injured when you meet an accident. This type of coverage shoulders all your liabilities against other people's claims for medical expenses, lost wages, damages and other losses. Of course, it protects you up to the stated amount in your insurance policy.
-Property damage liability coverage shoulders any damaged property of other people up to the amount stated in your auto insurance policy. The damages may include broken glass, crushed fender, damaged wall or broken fence, as a result of any car accident caused by you or anyone driving your car with your consent. Coverage also includes payments to any damaged government property due to same cause.
-Uninsured motorist coverage covers for your own bodily injury or of anyone injured who is in your vehicle when hit by an uninsured motorist or a hit-and-run reckless driver. This also covers you or any member of your family who is injured as a pedestrian hit or struck by same uninsured motorist. In the same way, underinsured coverage pays for your injury when the adverse insurance does not cover your bodily injury losses.
-Physical damage coverage includes the collision coverage, which pays for the physical damage of your vehicle; and comprehensive coverage, which pays for the damages to your vehicle due to fire, hail, water, falling objects, and the like.
Now, you have a glimpse of the basic information about the different coverage of auto insurance in Wisconsin. Applicable policies for claims and renewals are likewise provided for insurance company to follow. However, the rates of auto insurance vary. Almost all auto insurance company has its own special discount packages to offer to attract customers. If you wish to avail cheap auto insurance in Wisconsin, you simply take note of the minimum limit required by law and consider the package offerings of the insurance company.
