Budget Bill Changes Wisconsin Car Insurance Landscape
Governor Jim Doyle signed the 2009 Wisconsin budget bill on June 29, 2009, bringing sweeping changes to Wisconsin's automobile insurance law.

August 23, 2009 /24-7PressRelease/ -- Budget Bill Changes Wisconsin Car Insurance Landscape

Article provided by Domnitz & Skemp, S.C.
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Governor Jim Doyle signed the 2009 Wisconsin budget bill on June 29, 2009, bringing sweeping changes to Wisconsin's automobile insurance law. The Governor boldly included in the $62 billion, two-year budget bill his "Truth in Auto Insurance" law. Both Senate and Assembly leaders strongly supported those changes, which countered previously-enacted laws on the books that favored insurance companies at the expense of consumers and injured persons. The new law has substantial protections for Wisconsin consumers, and provides tremendous assistance to the injured.

What Became Law

The major Truth in Auto Insurance provisions that became law include:
-The minimum insurance liability coverage requirement for an accident increases to $50,000 for injury or death of one person (up from $25,000); $100,000 for injury or death of two or more persons (up from $50,000); and $15,000 for property damage (up from $10,000). [Effective January 1, 2010.] The current minimum coverage levels have been on the books for over two decades and were clearly not sufficient to cover the cost of injuries in today's healthcare market.

-In most situations, uninsured and underinsured motorist insurance coverage (UM/UIM) must be at least $100,000 per person and $300,000 per accident.

-Reducing clauses are outlawed, meaning the proceeds from an underinsured at-fault driver's liability insurance may not be subtracted from the amount of the innocent driver's uninsured or underinsured (UM/UIM) coverage. This consumer-friendly provision means that insurance companies selling insurance must provide the full amount of the insurance sold -- $100,000 in coverage means $100,000 in coverage.

-Anti-stacking provisions are also prohibited; meaning the proceeds of more than just one car insurance policy (up to three) held by an insured may be accessed if the first one does not completely cover the damage from a single accident. In the past, despite paying for multiple policies, many consumers were prohibited from using those policies when needed. This change allows seriously injured persons to use the benefits of multiple policies they have been paying for.

-The physical "hit" requirement for hit and run accidents was eliminated. In the past, drivers who were forced off the road or into another vehicle could not make claims against their uninsured motorist's coverage unless their car was physically struck by the vehicle which fled the scene. This penalized drivers who tried to avoid impact. The new law permits drivers to seek recovery from their uninsured motorist coverage if there are independent witnesses to the absent vehicle which caused the accident.

Significantly, the law now requires Wisconsin drivers to insure their vehicles, leaving New Hampshire as the only state not requiring cars to be insured. This is a tremendous achievement, which will place the responsibility for an accident on the party that caused it, rather than on the innocent injured person.

What Did Not Become Law

Despite approving the increased liability coverage requirements for 2010, the Governor vetoed additional increases in the levels of required liability insurance that would have taken effect in 2011 and 2012. However, the law does provide for inflationary increases every five years beginning in 2017.

The Governor also vetoed the so-called "drive other car" exclusion. In very basic terms, the proposed measure would have prohibited insurance companies from denying UM/UIM coverage for accidents involving an underinsured vehicle in a household other than the one specifically covered by the UM/UIM policy.

An Excellent Beginning

While the changes listed above are significant, we will continue to push for the vetoed provisions to become law in the future so as to continue to protect and assist the citizens of Wisconsin.

Press Release Contact Information:

Ric Domnitz
Domnitz & Skemp
Wisconsin Car Accident Lawyers
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