What to Do After a Wisconsin Car Accident With No Insurance

Getting into a car accident is stressful enough It’s even worse when you don’t have insurance. In Wisconsin, it’s illegal to drive without at least liability coverage. If you’re uninsured and cause an accident, you could face license suspension, registration suspension, fines, and lawsuits from the other driver

While an uninsured accident in Wisconsin can create big problems, you still have options to get your license back and avoid huge costs. Here’s what to know about handling an uninsured car accident in Wisconsin and how to limit the damage.

Wisconsin Insurance Requirements

Under the Wisconsin Safety Responsibility Law, all vehicles operated in the state must carry liability insurance. The minimum required auto insurance coverage includes:

• $25,000 bodily injury liability per person – Covers medical bills for each person injured in the accident
• $50,000 bodily injury liability per accident – Total payout for all injuries in the accident
• $10,000 property damage liability – Repairs or replacement for property damaged

These minimums are woefully inadequate in many accidents. That’s why experts recommend carrying higher limits like 100/300/100 to fully protect your assets.

If you cause an accident without meeting the state minimum insurance requirements, the consequences can be severe:

• License suspension – The Wisconsin DMV will suspend your license for one year.
• Registration suspension – Your vehicle registration will also be suspended.
• Fines – You can face fines up to $500.
• Future high-risk insurance rates – Once your license is reinstated, you’ll pay much higher insurance premiums for 3 years.
• Lawsuits – The other driver can sue you personally for damages that exceed your insurance payout. This can lead to garnished wages and liens against your property.

Clearly, driving uninsured in Wisconsin leaves you very vulnerable after an at-fault accident. However, the state does give you a few options to avoid suspension and restore your driving privileges.

Post a Security Deposit

If you caused the accident while uninsured, the first step is to cooperate with the Wisconsin DMV and provide requested information to determine fault and damages.

Once the claims are investigated, the state will give you the option to post a security deposit that covers the estimated damages. This deposit protects victims so they can get their cars fixed and medical bills paid while claims are processed.

The deposit must be in the full amount set by the DMV – typically at least $25000 for injury claims and $10000 for property damage. You may be able to arrange an installment plan to pay it over time. As long as you cooperate and provide the security funds, the one-year license suspension will be waived.

Sign an Installment Agreement

If you can’t afford to pay the large security deposit upfront, Wisconsin gives you another option – signing an installment agreement to pay damages in smaller increments over 12 months.

This written agreement submitted to the DMV allows you to reimburse the other driver or their insurance company directly in installments, avoiding suspension. However, the state will tack on a $50 service fee to set up a payment plan.

The installment option prevents the worst penalties, but failure to make timely payments will result in an immediate one-year license suspension. And even with an installment plan, you still face financial consequences and civil lawsuits until all damages are paid.

Seek Forgiveness from the Other Driver

Believe it or not, the victim in the accident has the power to request that the DMV waive the security deposit requirement and allow you to keep your license.

If the other driver or their insurer formally agrees in writing not to seek damages from you, the DMV can opt not to suspend your license. Make sure any agreement is submitted to the DMV in time to halt enforcement actions.

Of course, counting on forgiveness from someone you injured in an accident is risky. But for minor fender benders with understanding victims, it’s possible they may let you off the hook completely.

Use Alaska or New Hampshire Insurance

Wisconsin allows drivers to provide proof of liability insurance issued in the states of Alaska or New Hampshire to avoid penalties after an uninsured accident.

These two states do not mandate policy minimums, so their state minimums are de facto $0. By quickly obtaining a cheap non-owner insurance policy from AK or NH for proof, you may be able to reinstate your Wisconsin license and registration without interruption.

Transfer Your License and Registration

Some drivers try to skirt Wisconsin’s requirements altogether by transferring their license and registration to another state right after an uninsured accident

If you formally move to a new state and switch your docs, Wisconsin may no longer have standing to suspend your new out-of-state license. Each situation is different, so consult a legal professional before attempting this strategy.

File for an Occupational License

If your license is already suspended in Wisconsin after an uninsured accident, you can apply for an occupational driver’s license. This restricted license allows you to legally operate vehicles only for limited work purposes while your suspension remains in effect.

You’ll need to prove that having your full license is essential for maintaining your current employment. Expect to provide extensive documentation and pay application fees for an occupational license.

Consult an Attorney

To fully understand your options and legal rights after causing an accident with no insurance, it’s smart to have an experienced Wisconsin attorney review your case. They can advise you on the smartest steps to reinstate your license fast and avoid massive fines.

In many cases, an attorney can negotiate favorable terms with the DMV or other driver’s insurer on your behalf. Their expertise can be invaluable for limiting damages after an uninsured accident.

Shop for New Insurance ASAP

Once you get through the immediate crisis of an uninsured accident in Wisconsin, prioritize getting properly insured again before you drive. Shop around and compare quotes from insurers like State Farm, Allstate, GEICO, and more.

While rates will be higher due to your accident, establish a relationship with an agent who can help you find affordable coverage options. Having at least state minimum liability protection means you’ll avoid future penalties if another accident occurs.

How to Avoid Uninsured Accidents

Driving without insurance significantly increases your liability on Wisconsin roads. Here are some tips to avoid uninsured accidents in the future:

• Shop around – Compare quotes regularly to find the cheapest liability rates you qualify for.

• Raise deductibles – By accepting higher deductibles, you can lower policy premium costs.

• Drop optional coverages – Eliminate extras like rental reimbursement or roadside assistance for savings.

• Maintain a good driving record – Avoid tickets and accidents to qualify for the lowest possible rates.

• Ask about discounts – Take driver safety courses, maintain good credit, insure multiple cars/policies with one company, and take advantage of other ways to save.

• Consider state minimums – If money is tight, this ensures you meet requirements for the lowest premium.

• Explore state insurance programs – Wisconsin offers options like auto insurance plan and pooled fund for higher risk drivers.

Driving uninsured might seem like an easy way to save money, but the aftermath of an at-fault accident without coverage can be financially devastating. Protect yourself and others on the road by reviewing these Wisconsin insurance compliance rules and exploring all options for getting insured.