Wisconsin Senate Passes Lower Car Insurance Levels

The Wisconsin state Senate passed legislation that would lower minimum levels of auto insurance. Car insurance would still be required under the bill passed on a bipartisan 25-7 vote, but the levels of coverage required would drop. Democrats approved higher limits in 2009 when they controlled the Legislature. Most of the changes took effect in 2010 after more than 20 years of no changes.

The current liability minimums are $50,000 for injuring or killing one person, $100,000 for injuring or killing two people and $15,000 for property damage. Under the legislation, the limits would drop to $25,000, $50,000 and $10,000

The higher requirements were a popular campaign target for Republicans who won conrol of the Legislature in the November election, and they passed the bill quickly. Republican Gov. Scott Walker has said he supports the lower minimum and will sign the bill if it’s passed. It cleared the Assembly on a preliminary vote, but Democrats used a procedural move to delay a final vote until later in February.

Senate Bill 7 would reduce the minimum coverage for liability and uninsured drivers insurance. It would make coverage for underinsured voluntary again, as it was before the 2009 law passed. Underinsured coverage kicks in when the motorist who caused the accident has lower liability limits than the amount of damage.

The changes would take effect six months after the governor signs the bill.