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It feels great when you finally pay off your car. Without a lienholder, you have more flexibility with your auto insurance policy. However, fewer requirements do not mean fewer risks. Understanding Wisconsin’s insurance laws will help ensure you stay properly protected.
Liability Insurance Requirements in Wisconsin
Wisconsin requires all drivers to carry liability auto insurance. Liability coverage protects other drivers and their vehicles if you cause an accident. The minimum required limits are 25/50/10, which means:
- \$25,000 bodily injury coverage per person
- \$50,000 bodily injury coverage per accident
- \$10,000 property damage coverage per accident
Keep in mind that liability insurance does not protect your own vehicle if it is damaged. To protect yourself, Wisconsin also requires uninsured motorist bodily injury coverage at 25/50.
These requirements apply whether your car is brand new or twenty years old.
Requirements Are Different for Paid-Off Vehicles
When a lender holds the title, they require both collision and comprehensive coverage to protect their financial interest. Once you own your vehicle outright, these coverages become optional under Wisconsin law. You decide whether the added expense fits your needs and budget.
Things to Keep in Mind for Car Insurance
The age and condition of your vehicle often play a major role in determining what coverage makes sense. Older vehicles typically have lower market value, which can make collision and comprehensive coverage difficult to justify. On the other hand, if you drive a newer model, protecting your investment may be worth the cost. Wisconsin’s severe weather is also a factor to consider.
An Expert Will Go Over Your Options With You
Choosing the right insurance setup for a paid-off vehicle does not have to be complicated. A knowledgeable agent can walk you through your options and help you determine the right level of protection. Contact Senz Insurance Agency Inc. in Beloit, WI, and our team will make sure you have the coverage you need.
