Wisconsin Passes Bill to Reduce Mandatory Minimum Auto Liability Limits

The Wisconsin Legislature passed a bill that will reduce the mandatory minimum auto insurance liability limits in that state.

The American Insurance Association (AIA) commended the Wisconsin State Senate for passing Assembly Bill 4, which insurance trade groups say will improve the state’s automobile insurance climate for consumers. The bill was previously approved by the Wisconsin State Assembly.

In 2009, Wisconsin doubled its minimum liability limits, requiring motorists to obtain $50,000 in coverage for accidents causing bodily injury or death for a single victim, $100,000 for multiple victims, and $15,000 for property damage. AB 4 will roll back those limits to $25,000, $50,000 and $10,000, respectively.

This legislation “should hopefully decrease the number of uninsured motorists in the state who currently can’t afford coverage,” said Steve Schneider, AIA Midwest vice president.

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.

Property Casualty Insurers Association of America Regional Manager Jeffrey Junkas noted that, “in addition to addressing financial responsibility limits, it returns medical payments and uninsured motorist minimum limits to their prior levels. This bill restores several important provisions, all of which help to temper loss costs that ultimately drive auto insurance premiums.”

Topics Auto Wisconsin