A Year After Wisconsin Drivers Got a Reprieve

In April 2011, the Wisconsin State Senate passed a law to lower the high standards it held regarding insurance coverage. Every state has their own rules and regulations regarding the minimum levels of auto insurance coverage a licensed driver needs to carry. Usually these laws mandate bodily injury coverage as well as property damage coverage, though in some states, PIP or personal injury protection is mandatory instead.

Wisconsin’s liability limits post-2009 have been 50/100/15. What this means in English, is that they need to carry bodily injury liability limits in the amounts of $50,000 per injured person to a maximum of $100,000 per accident. The 15 means $15,000 of property damage liability.

In April 2011, these limits were scaled down to $25,000 per injured person to a maximum of $50,000 per accident, and $10,000 worth of property damage liability.

According to the InsuranceJournal, “Mark Johnston, state affairs manager for the National Association of Mutual Insurance Companies (NAMIC), also commended the Wisconsin Legislature for passing AB 4. ‘The numerous mandates in that bill increased premiums and thereby created undue hardship on those Wisconsin motorists who could least afford it,’ Johnson said.”

Positive Side-Effects

As a byproduct of lowering these minimum standards, insurance will naturally become cheaper for drivers to obtain. The 50/100/15 levels of liability coverage will still be available to those who feel they are warranted and can pay for them, while those that can’t afford that much insurance can opt for the 25/50/10 minimum.

In addition, Wisconsin hopes that this will reduce the number of uninsured drivers out on their streets. Sometimes high insurance costs can mean the difference between paying for groceries, paying the mortgage, or complying with the law. People need to eat, and they need to be able to pay for their homes. These are just some examples that oftentimes take precedence over having high levels of insurance coverage.

This decrease will serve to help families out. If you’d like to learn more about other Wisconsin laws regarding auto insurance coverage, please visit our website.

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