Auto insurance will be required in the state of Wisconsin starting June 1, 2010. While the Department of Transportation and the office of the Commissioner of Insurance have yet to figure out some of the details and some of its fuzzier enforcement aspects, this much seems clear:

 

ü  Wisconsin drivers will be required to carry with them proof — probably a card or letter issued by an insurer — that they have auto insurance starting June 1, 2010.

 

ü  If a driver is stopped on suspicion of a traffic violation, the police officer can ask for proof of insurance. 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. (One of the still-fuzzy aspects, according to state officials, is how police will discern the difference between a person who doesn't have insurance or simply doesn't have proof).

 

ü  Underinsured motorist coverage, which now is optional, will be required for state drivers on new or renewed policies starting November 1, 2009.

 

ü  Motorists will need to have a policy providing at least $50,000 in bodily injury coverage for one person, $100,000 in bodily injury coverage per accident, and $15,000 to cover property damage. The current limits are $25,000, $50,000, and $10,000, respectively. The higher limits go into effect January 1, 2010.

 

ü  "Stacking" of motor vehicle policies (combining coverage limits for multiple vehicles to determine the limit of insurance coverage available for bodily injury or death suffered by a person in any one accident) to determine liability amounts is now allowed in Wisconsin. Prior to the budget enactment, the stacking of vehicle policies to determine liability limits was not allowed. The budget language limits "stacking" to three vehicles owned by the insured. Please note that there is no guidance on which three vehicle policies can be stacked. This provision also appears to apply to commercial vehicle policies as well.

 

Finally, the bill prohibits an insurer from placing an insured in a high-risk category because the insured previously had no motor vehicle insurance.