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AIA Urges Wisconsin Senate to Pass Bill Reducing Auto Liability Coverage Minimums

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Posted on 18 Mar 2011

The American Insurance Association (AIA) on Thursday urged the Wisconsin State Senate to pass A.B. 4, legislation that would reduce minimum auto insurance liability coverage requirements for Wisconsin motorists. In 2009, Wisconsin doubled its minimum liability limits.  Under the new bill, limits would be reduced by 50 percent.

A.B. 4 passed the Wisconsin State Assembly earlier this month and is expected to be considered by the Senate after it reconvenes on April 5.
AIA believes that mandating unnecessary higher coverage limits adds to motorists’ insurance costs and increases the number of uninsured.

“Doubling auto liability limits didn’t make sense in 2009 and maintaining them doesn’t makes sense in now,” said Steve Schneider, AIA Midwest Region vice president.  “High minimums have costly implications for insurance consumers and it makes no sense to provide more insurance coverage for people who don't want it or need it.  Reducing liability limits will help Wisconsin motorists save money while providing sufficient insurance coverage.”

In 2009, the Wisconsin Legislature adopted and then-Gov. Jim Doyle signed legislation increasing the state minimum auto insurance liability limits.  Under the 2009 law, motorists are currently required to obtain $50,000 of coverage for accidents causing bodily injury or death for a single victim, $100,000 for multiple victims, and $15,000 for property damage.

A.B. 4 would roll back those limits to $25,000, $50,000 and $10,000 respectively.  Motorists have the option of purchasing coverage that exceeds the minimum liability requirements.

“Passage of this bill will benefit consumers,” said Schneider.  “Wisconsin’s motorists deserve greater choice and flexibility in this challenging economy.”


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