Costly Auto Insurance Mandates
in Governor’s Budget
Impact of Governor’s Mandates:
Forces families to pay over 33% more for auto insurance they don’t need.
Mandates regressive costs that would fall most heavily on low- and middle-income families.
Drives Wisconsin from the 3rd lowest cost auto insurance state to one of the highest cost states.
Increases the number of uninsured motorists.
Establishes Wisconsin as the state with the highest mandatory limits in the nation. Only four states even require
limits greater than Wisconsin’s current limits.
Wisconsin’s current 25/50/10 limits are sufficient to cover over 90% of all claims. This bill forces consumers to
purchase thousands of dollars of unneeded coverage.
Premiums will increase under this bill. Wisconsin “solvency” regulations require insurance companies to charge
premiums that reflect risk to maintain the financial stability to pay claims.
Regressive Mandate on Low-and Middle-Income Families:
Responsible low- and middle-income families paying the current minimum auto insurance levels would see their
costs rise 33% to 43%. High income families who already choose higher coverage levels would be less affected
but would still see premium increases.
Families would pay between $96 and $309 more for insurance with the largest dollar increase falling on families
in the Milwaukee area.
Rural families, especially in western Wisconsin, would have the highest percentage increase in their premiums.
Low- and middle-income families bear a disproportionate share of the current economic crisis in terms of plant
closings, layoffs and home foreclosures. These regressive cost increases mandated in the Governor’s Budget
would hit them hardest.
Increases Cost through Unnecessary Mandates:
Mandates “stacked” insurance policies – This provision mandates that families pay extra to allow coverage limits
from vehicles not involved in an accident to be “stacked” on the insurance for the vehicle in an accident.