Wisconsin Auto Insurance Rates May Increase
Friday, February 20th, 2009
Scott Bauer from the Associated Press has reported on the impact Governor Jim Doyle’s new budget could have on Wisconsin auto insurance. The Wisconsin Insurance Alliance is against the provision that would require an increase in the lowest level of coverage available to buy:
- $300,000 in total coverage (formerly $50,000)
- $100,000 in coverage per person (formerly $25,000)
- $25,000 in property damage coverage (formerly $10,000)
The state actually doesn’t require that drivers buy auto insurance! However, those who do buy insurance must have a minimum of coverage. The new proposal would give Wisconsin the highest levels of minimum coverage in the nation, although it will still not be mandatory.
Objections to this rule from insurers are centered around the possibility of higher amounts of minimum coverage resulting in greater claim payouts, Scott says. Therefore, they predict auto insurance premiums would be from 33% to 43% more expensive. On the other hand, lawyers believe that the currents are unrealistic and have not been adjusted for inflation in decades. They claim that liability insurance, as opposed to health insurance, should cover more of the cost of auto accident claims resulting in injury.
