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State Legislature Passes Law Lowering Wisconsin Car Insurance Rates

Minimum limits for personal injury and other liability protection can increase car insurance rates, so Wisconsin motorists should be excited to hear that the statehouse is reducing limits, even if they aren't happy about other moves at the statehouse in Madison.

It is a big deal because Wiscsonsin, unlike some other states, requires a mandatory minimum level of coverage for all drivers who own their vehicles, notes BuisnessWeek. It also goes against a previous bill passed by Democrats just two years in 2009. Coverage would require at least a $25,000 limit for on personal injury claim, $50,000 for all occupants and others involved, and $10,000 for property damage.

Will it Pass?

Wisconsin state legislators have been making headlines in a number of other areas, notably in collective bargaining rights. It's accurate to suggest that there is heavy partisanhip on both sides, which means that the bill, promoted by Republicans, could face heavy scrutiny. No one is yet sure whether it will pass.

At the same time, it's the type of legislation that's likely to be involved in bipartisan compromises, and it's fairly low down on the list of priorities for Democrats in the Senate. It won't be passed tomorrow, but it's likely to pass this year.

Why Will It Matter for Wisconsin Car Insurance Policy Holders?

If you have ever played with online tools for car insurance, you know that liability limits play a large role in the cost of coverage, and a few thousand dollars one way or the other can have a significant impact on a six-month or one-year policy quote.

In Wisconsin, it's even more significant because of the gaps between the Democrat limits of 2009 and the new proposed limits that could be passed in 2011. The new 10/50/10 limits are substantially lower than the old limits of $50,000 for a single injury, $100,000 for all persons involved in the crash and $15,000 for property damage.

The savings differ based on a number of factors included in Wisconsin car insurance policy quotes, but it should represent a fair amount of savings if its passed. Wisconsin residents interested in the savings may wish to contact their local legislator to speed passage. It needs to be re-introduced in the state Senate in order for passage and for new Governor Scott Walker to sign the bill into law.