Madison Office: 122 South, State Capitol  Phone: (608) 266-7745  E-mail: Sen.Harsdorf@legis.wi.gov

Auto Insurance Coverage Requirements to Rise

Governor Doyle’s budget provision calling for an increase in minimum coverage amounts for motor vehicle insurance has been adopted by the Legislature’s budget writing committee, with a few modifications.

The Governor's proposal would increase liability coverage from $10,000 to $25,000 for property damages, from $25,000 to $100,000 for bodily injury coverage, and from $50,000 to $300,000 for bodily injury of two or more people. The Governor also called for raising uninsured and underinsured coverage amounts to $100,000 per person and $300,000 per accident.

These changes were adopted by the Legislature’s budget writing committee, with one change that phases in the liability coverage requirements of $25,000/$100,000/$300,000 over three years. The Wisconsin Insurance Alliance estimates that this provision would raise premiums between $96 and $309.

While this provision is expected to increase auto insurance premiums, which are currently some of the lowest in the country, there is no reason to include such non-fiscal policy items in the budget. It should come out and be debated on its own merits.