Wisconsin drivers may get a break on their auto insurance prices; Republican’s have put a bill up for vote to decrease the minimum amount of liability insurance required. This may be a no-win situation; some of the components of the bill may end up costing drivers more in the long run.
Just over two years ago the Democratic majority passed a bill to raise the minimum liability limits required to reflect pricing changes. It had been over 20 years since liability insurance had been raised. When Republican’s won the state majority, they proposed to repeal the bill and lower the minimum coverage back to its previous status.
The new bill would still make vehicle liability insurance mandatory, but it would decrease the minimum amount the driver would be required to carry. As long as the new bill passes the state Senate vote; it will take effect about six months after the Governor signs it into law.
What Wisconsin’s may not be aware of, is what other changes the new bill may impose. New driver’s getting insurance for the first time can be placed in a “high risk” category, if the insurer chooses to do so. Also, the insurer will be allowed to put reducing clauses in the policy. This means if the insured driver is in an accident with someone who is underinsured, they may not collect as much on their claim.
The new bill would also deny policy holders from “stacking” their coverage, which was allowed in the previous bill. Additionally, this new version would also make underinsured coverage voluntary; at this time underinsured coverage is mandatory.
Republicans are hoping the Senate will vote on repealing the law, later this month.