Wisconsin Proposal to Increase Driver Liability Coverage Still Being Evaluated

Wisconsin Republicans have failed in an attempt to remove a budget provision they say will cause car insurance rates to increase in the state.

The proposal, submitted by Gov. Jim Doyle, proposes to increase the minimum amounts of liability coverage required for drivers. Current liability limits of $25,000 for each person, $50,000 for each accident, and $10,000 for property damage per accident would increase to $100,000, $300,000 and $25,000, respectively.

Wisconsin would have the highest mandatory auto liability limits in the nation if the law were to pass, according to the National Association of Mutual Insurance Companies. “The changes would translate to increases of 40 percent or more in auto insurance premiums,” said Mark Johnston, NAMIC’s Midwest state affairs manager. “This would especially impact low- and middle-income families, since many of those with higher incomes already choose the higher coverage levels and, therefore, would not be impacted as severely.”

Johnston says the governor’s proposal would also undo many tort reforms that protect defendants who bear little responsibility for an accident. Someone who is barely connected to an accident could end up paying the entire amount of the damage. “An example would be when an uninsured drunk driver causes a horrific accident. The plaintiff’s lawyer will strain to look for someone else with insurance, such as another driver or a property owner near the scene of the accident, who somehow can be said to have contributed to the accident,” Johnston explained.

The proposal would also drive up costs by allowing the “stacking” of insurance policies, requiring uninsured motorist coverage when an accident is caused by a phantom car – which would result in increased fraud, and increasing the amount of paperwork required, Johnston explained.

“These are significant public policy changes, and they need to go through the proper legislative process where there is time for analysis and public comment,” Johnston said. “Sticking the legislation in the budget greatly reduces the opportunity for scrutiny and usually creates legislative mistakes.”

Sources: Governor’s office, NAMIC

Latest Comments

• June 1, 2009 at 9:37 am

  sandman says:

  It is about time that liablity minimums catch up with the real world. Why should I have to pay extra premiums in case I am injured by the folks that don't want to pay their f... read more
• May 29, 2009 at 12:45 pm

  badger says:

  This proposal would never have moved forward if proposed as an independent bill in the legislature. Public sentiment would have doomed it as would have the lawmakers. We never... read more