Wyoming Auto Insurance Requirements

Mandatory Auto Insurance Law

Wyoming's Compulsory Insurance Law

Wyoming law (W.S. 31-9-101 et seq.) requires all motor vehicle owners to maintain minimum liability insurance coverage.

Purpose: Ensure financial responsibility for auto accidents

Requirement: Continuous coverage while vehicle is registered

Enforcement: Through traffic stops, accidents, and registration

Exam Tip: Wyoming is a "mandatory insurance" state. Operating a vehicle without required insurance is illegal and subject to penalties including fines, license suspension, and SR-22 requirements.

Minimum Liability Coverage: 25/50/20

Required Coverage Limits

What the Limits Mean

25/50/20 Explained:

• $25,000 per person: If you injure someone in an accident, your policy pays up to $25,000 for their injuries
• $50,000 per accident: If multiple people are injured, your policy pays up to $50,000 total
• $20,000 property damage: Pays up to $20,000 for damage to others' vehicles or property

Coverage Example

Accident Scenario:

• You cause an accident injuring two people
• Person 1 medical bills: $30,000
• Person 2 medical bills: $15,000
• Property damage: $8,000

25/50/20 Policy Pays:

• Person 1: $25,000 (max per person) → You owe $5,000
• Person 2: $15,000 (within limits)
• Total BI: $40,000 (within $50,000 per accident limit)
• Property: $8,000 (within $20,000 limit)

You Are Personally Liable For: $5,000 (Person 1's excess damages)

Exam Tip: Wyoming's minimums are adequate only for minor accidents. Producers should discuss higher limits (50/100/50 or 100/300/100) with clients to avoid personal exposure.

Proof of Insurance

Carrying Proof of Coverage

Wyoming Law Requirement: All drivers must carry proof of insurance

Acceptable Forms:

• Insurance identification card (physical)
• Electronic proof on smartphone or device
• Copy of declarations page
• Digital insurance app display

What Must Be Shown:

• Insurance company name
• Policy number
• Effective dates
• Vehicle identification
• Named insured

When Proof Must Be Provided

Electronic Proof: Wyoming law explicitly allows digital proof of insurance displayed on electronic devices.

Exam Tip: Wyoming accepts both paper and electronic proof of insurance. Officers cannot confiscate devices to view proof.

Uninsured/Underinsured Motorist Coverage

UM/UIM Offer Requirement

Wyoming Law (W.S. 26-15-106):

• Insurers MUST offer UM/UIM coverage
• Coverage must equal liability limits unless rejected in writing
• Insured may decline, but must do so explicitly

What UM/UIM Covers

Uninsured Motorist (UM):

• Bodily injury caused by uninsured driver
• Hit-and-run accidents
• Driver whose insurer denies coverage or becomes insolvent

Underinsured Motorist (UIM):

• Bodily injury when at-fault driver has insufficient insurance
• Pays difference between at-fault driver's limits and your damages
• Subject to your UIM policy limits

UM/UIM Coverage Limits

Default: Equal to liability limits unless lower limits selected

Example:

• Liability coverage: 50/100/25
• UM/UIM coverage offered: 50/100
• Can select lower UM/UIM if desired

Rejection Requirements

To Decline UM/UIM:

• Must be in writing
• Named insured must sign
• Must be informed rejection
• Insurer keeps signed rejection form

Standard Rejection Language:

"I have been informed of the availability of uninsured/underinsured motorist coverage. I understand this coverage protects me if injured by an uninsured or underinsured driver. I elect to reject this coverage."

Exam Tip: Wyoming REQUIRES insurers to offer UM/UIM, but policyholders may reject coverage in writing. Many consumers keep UM/UIM due to high uninsured driver rates.

Wyoming Tort System

At-Fault (Tort) System

Wyoming follows a tort liability system:

How It Works:

1. At-fault driver is legally responsible for damages
2. Injured parties file claims against at-fault driver's insurer
3. At-fault driver's liability insurance pays damages
4. Injured parties may sue at-fault driver for excess damages

Modified Comparative Negligence

Wyoming Rule: 50% Bar Rule (W.S. 1-1-109)

How It Works:

• Injured party's damages reduced by their percentage of fault
• If injured party is 50% or more at fault, they recover nothing
• If injured party is less than 50% at fault, they recover reduced amount

Comparative Negligence Examples

Example 1: 20% at Fault

• Total damages: $100,000
• Injured party's fault: 20%
• Recovery: $100,000 × 80% = $80,000

Example 2: 50% at Fault

• Total damages: $100,000
• Injured party's fault: 50%
• Recovery: $0 (50% bar rule)

Example 3: 40% at Fault

• Total damages: $100,000
• Injured party's fault: 40%
• Recovery: $100,000 × 60% = $60,000

Exam Tip: Wyoming's 50% bar rule means if you are 50% or more at fault, you recover nothing. If less than 50% at fault, your recovery is reduced by your percentage of fault.

Additional Auto Coverages

Optional Coverages

Collision Coverage

What's Covered:

• Damage to your vehicle from collision with another vehicle
• Damage from collision with objects (tree, pole, guardrail)
• Single-vehicle rollovers

Deductible: Typically $250, $500, or $1,000

Payment: Actual cash value minus deductible

Not Covered: Collision damage while racing or intentional acts

Comprehensive Coverage

What's Covered:

• Theft of vehicle or contents
• Vandalism and malicious mischief
• Glass breakage
• Falling objects (tree branches, rocks)
• Fire and lightning
• Hail, wind, flood
• Animal strikes (deer, elk)
• Riot and civil commotion

Common in Wyoming:

• Deer/elk collisions (very common)
• Hail damage (frequent in spring/summer)
• Windshield damage (gravel roads)

Deductible: Typically $100-$1,000 (often lower than collision deductible)

Exam Tip: Wyoming has high rates of deer and elk collisions. Comprehensive coverage pays for animal strikes. Collision coverage does NOT cover animal strikes—only comprehensive does.

Medical Payments Coverage

What's Covered:

• Medical expenses for you and passengers
• Regardless of fault (no-fault coverage)
• Payable in addition to liability
• Covers ambulance, hospital, surgery, doctor visits

Typical Limits: $1,000, $2,000, $5,000, or $10,000 per person

Coordination: May coordinate with health insurance

Penalties for No Insurance

First Offense

Subsequent Offenses

Increased Penalties:

• Higher fines (up to $750+)
• Longer license suspension
• Possible jail time
• Extended SR-22 requirement

After Accident Without Insurance

Consequences:

• Personally liable for all damages
• License suspension until damages paid
• SR-22 required for 3 years minimum
• Possible civil lawsuit

Exam Tip: Driving without insurance in Wyoming results in license suspension, fines, and mandatory SR-22 filing. The SR-22 requirement lasts at least 3 years and significantly increases insurance costs.

SR-22 Certificate

What Is an SR-22?

Definition: Certificate of Financial Responsibility filed by insurer with Wyoming DMV

Purpose: Prove high-risk driver maintains required insurance

Not a Policy: SR-22 is a filing, not insurance coverage

Who Needs SR-22?

SR-22 Process

1. Court Orders SR-22: Following conviction or violation
2. Obtain SR-22 Insurance: Purchase policy from SR-22-authorized insurer
3. Insurer Files SR-22: Company files certificate with Wyoming DMV
4. Maintain Continuous Coverage: Any lapse results in license suspension
5. Fulfill Requirement: Maintain for full 3-year period

Cost: SR-22 filing fee typically $25-50, plus increased insurance premiums

Lapse Consequences: If coverage lapses, insurer notifies DMV → immediate license suspension

Exam Tip: An SR-22 is NOT insurance—it's proof of insurance. Insurers must notify the DMV immediately if SR-22 coverage lapses or cancels. This triggers automatic license suspension.

Out-of-State Accidents

Coverage While Traveling

Wyoming Auto Policies Provide:

• Coverage in all 50 states and Canada
• Minimum limits of Wyoming or state visited (whichever higher)
• Automatic adjustment to meet other state requirements

Example:

• Wyoming policy: 25/50/20
• Traveling in California (requires 15/30/5)
• Policy automatically provides 25/50/20 (Wyoming's higher limits)

Non-Resident Coverage in Wyoming

Visitors to Wyoming:

• Must have coverage meeting Wyoming minimums
• Out-of-state insurance accepted
• Must carry proof of insurance

Auto Insurance Policy Structure

Personal Auto Policy (PAP) Organization

Part A: Liability Coverage

• Bodily injury and property damage liability
• Defense costs
• Supplementary payments

Part B: Medical Payments Coverage

• No-fault medical expense coverage
• For insured and passengers

Part C: Uninsured Motorists Coverage

• UM and UIM coverage
• Bodily injury protection

Part D: Coverage for Damage to Your Auto

• Collision coverage
• Other than collision (comprehensive) coverage

Part E: Duties After an Accident or Loss

• Insured's obligations following loss

Part F: General Provisions

• Policy terms, conditions, definitions

Named Driver Exclusions

Excluding High-Risk Drivers

Purpose: Reduce premium by excluding specific drivers

Requirements:

• Must be in writing
• Named driver specifically identified
• Excluded driver must have other insurance or not drive
• Signed acknowledgment

Effect: No coverage if excluded driver operates vehicle

Common Uses:

• Exclude high-risk household member with separate policy
• Exclude driver with suspended license
• Exclude young driver rated elsewhere

Exam Tip: Named driver exclusions are powerful tools to reduce premiums but create coverage gaps. If excluded driver operates vehicle, there is NO coverage under the policy.

Good Driver Discounts and Rating Factors

Common Discounts

Rating Factors

Insurers consider:

• Age and gender
• Marital status
• Driving record (accidents and violations)
• Credit-based insurance score
• Vehicle make, model, year
• Annual mileage
• Garaging location (ZIP code)
• Coverage selections and deductibles

Wyoming-Specific Considerations

Rural Driving Conditions

Wyoming Challenges:

• Long distances between cities
• Wildlife collisions (deer, elk, antelope)
• Harsh winter weather
• Remote locations with limited services
• Gravel roads common

Insurance Implications:

• Higher mileage = higher premiums
• Comprehensive coverage important (animal strikes)
• Towing coverage valuable (long distances)
• Windshield coverage useful (gravel damage)

Winter Driving

Winter Risks:

• Ice and snow (October through April)
• Black ice on mountain passes
• Limited daylight hours
• Road closures

Coverage Recommendations:

• Collision coverage (weather-related accidents)
• Rental reimbursement (vehicle in shop)
• Towing and labor (stranded situations)

Summary: Wyoming Auto Insurance

Required Coverage: ✓ 25/50/20 liability minimums ✓ Proof of insurance at all times ✓ UM/UIM must be offered (can reject in writing)

Wyoming System: ✓ Tort (at-fault) liability system ✓ Modified comparative negligence (50% bar rule) ✓ SR-22 for high-risk drivers

Recommended Coverage: ✓ Higher liability limits (50/100/50 or more) ✓ Uninsured/underinsured motorist coverage ✓ Comprehensive (animal strikes, hail) ✓ Collision (weather-related accidents) ✓ Medical payments ✓ Rental reimbursement and towing