Mandatory auto insurance premiums will now be lowered as state senate & house approve bill


shutterstock_6129931Now, the mandatory auto insurance premiums will be rolled back as the State Senate & the House has approved a bill. In 2009 as per the law there was a hike in auto insurance premiums for some of the motorists.

It is important to have a better understanding of what this law entails for motorists. The Wisconsin motorists would still be required to carry insurance but this new law could help them decide the amount of coverage that would be required. According to the bill that has been passed in the legislature the state’s mandatory liability premiums that were raised in 2009, have been lowered.

According to Gov. Scott Walker, motorists were put under a lot of pressure when the insurance premiums were raised especially for those motorists who belonged to the lower-income groups as they could not find any car insurance policy that was affordable.

As per the present law motorists are expected to carry $50,000 coverage for accidents that result in bodily injury or death for a single accident victim, $100,000 for multiple accident victims, and $15,000 for property damage. But as per the new bill these limits would be rolled back to $25,000, $50,000, and $10,000 accordingly.

The opinion seems to be divided as the opponents feel that the higher premiums are necessary in view of the rising accident-related costs and those favoring the bill feel that auto insurance will become more affordable for everyone. However, going by the trends of 2009 many feel that the insurance rates may not actually go down.

Steve Jacobs from State Farm Insurance states that as per the new minimum required in the level of insurance that motorists were expected to carry there was a slight increase in rates due to that.

The drivers were of the opinion that lower premiums would help everyone. However, the bill still requires the governor’s signature.

Speaking in favor of the bill, Tom Mott has stated that the main problem was that the unemployment levels were high and people could ill afford the high insurance rates and hence the easiest way out was to give up on insurance.

Speaking in favor of the bill, David Andress stated that anything that could bring down the rates was always welcome.

Wisconsin auto insurance has so far ranked amongst the top five in the lowest insurance category in the nation, both after as well as before the hike in premium in 2009.