Wisconsin Congressmen Thinking Of Expanding Auto Coverage


Wisconsin lawmakers are contemplating if there is a need to expand auto insurance coverage for residents or not.  They are looking into the possible financial repercussions of changing the mandated coverage requirements, if in the long run it would prove to be costly for drivers.

Wisconsin Congressmen Thinking Of Expanding Auto CoverageIn June of this year, legislators passed amendments to existing auto insurance laws, primary of which was making auto coverage for Wisconsin motorists mandatory.  However, the minimum coverage requirements are not that clearly defined and there have been some discussions about overhauling the concerned provision in the bill.

For example, in cases of collisions with both drivers being badly injured, it would be highly disadvantageous to the victim if the driver who caused the accident was not insured or inadequately insured.

People are wondering if the current minimum coverage requirement, which has been in existence for 30 years, remains relevant and sufficient in today’s setting.  Critics argue that the current bill for auto insurance falls short in providing sufficient protection to today’s drivers and that legislators should perform a top-down realignment of outdated auto insurance bills.

Congressmen on the other hand are worried that residents might not appreciate getting higher bills, especially in these tough economic conditions.  They also said that people understand the importance and significance of car insurance however, if the cost of getting covered becomes prohibitive, they might as well take the risk of driving uninsured.

A local cab company complained that it had to pay more in premiums today even if their claims have dropped significantly. For small companies, it is a heavy burden to cover costs that are not directly benefitting the company.

Insurance companies admit to the timeliness of the legislation but observed that people now have to pay for coverage they don’t really need in the first place.  Some drivers, who are experiencing financial hardships, would have no choice but to give up coverage rather than go hungry.  It goes without saying that people in stressful economic conditions, would first take care of essentials like food and shelter rather than conveniences and luxuries.

Drivers are requested to check with their insurance companies if their coverage is in line with the current changes in the local auto insurance bill.  For example, the minimum coverage has went up to $15,000 for accidents causing property damage, $50,000 for injuries sustained and for uninsured/underinsured liability coverage is $100,000/$300,000.

Democratic lawmakers are threatening to boycott the proposed amendments initiated by Republican legislators, but there have been talks circulating that the changes would soon see the light of day.