Contact: Cullen Werwie, 608-267-7303
Bill Passes Both Houses with Bipartisan Support
Madison – Governor Scott Walker signed Act 14 today which repeals the auto insurance minimum coverage mandate put in place by the previous administration.
“Repealing this anti-consumer mandate is good for middle class Wisconsinites and small businesses and I am proud to sign its repeal and replacement,” Governor Walker said. “It is important to note that this bill received bipartisan support in both houses of the Legislature. I thank Senator Frank Lasee and Representative John Nygren for their leadership on this issue. I also thank the Independent Insurance Agents of Wisconsin for providing important testimony that described the severe impact last session’s insurance law changes had on consumers.”
Under current law, auto insurance mandates increased the coverage from 2009 levels of $25,000 for causing injury or death of one person, $50,000 for two persons, and $10,000 for property damage to $50,000, $100,000 and $15,000 respectively. Insurance companies were forced to pass the cost onto consumers in order to pay for this massive government-mandated increase.
Act 14 will remove the mandate and bring current levels back down to 2009 levels.
All Wisconsin drivers are required to carry “underinsurance” coverage. “Underinsurance” refers to a driver who causes an accident but cannot cover the total damages he/she is liable for. The current mandate places that insurance minimum to $100,000/person and $300,000/accident. Under new law, it will reduce to $50,000/person and $100,000/accident.
Wisconsin drivers will still be required to carry auto insurance under the new law.
