In April, Governor Scott Walker signed Assembly Bill 4 into law which reduces car insurance coverage requirements. The Bill, which will take effect on November 1st, is designed to lower car insurance rates. Under Assembly Bill 4, Wisconsin drivers are still required to carry auto insurance, but the required minimum levels will drop.

Breakdown of Changes:

1. Lowers current liability minimums:
   • Current liability minimums are: $50,000 for one person injured, $100,000 for all persons injured and $15,000 for property damage, (50/100/15).
   • The bill drops limits to: $25,000, $50,000 and $10,000, (25/50/10).
2. Underinsured Motorist Coverage (UIM) is no longer mandatory:
   • Under current law, all auto insurance policies must have underinsured motorists coverage. This coverage pays for injuries caused by a driver who is inadequately insured. Under the bill, insureds and applicants will not be forced to purchase UIM coverage.
   • Current levels for underinsured coverage are: $100,000 per person and $300,000 per accident, (100/300).
   • The bill drops limits to: $50,000 per person and $100,000 per accident, (50/100).
3. Lowers Uninsured Motorist Coverage (UM):
   • UM coverage typically pays for injuries you suffer from an accident caused by an uninsured driver.
   • Current levels for uninsured coverage are: $100,000 per person and $300,000 per accident, (100/300).
   • The bill drops limits to: $25,000 per person and $50,000 per accident, (25/50).
   • Uninsured motorists coverage will still be mandatory.
4. Medical Payments Coverage:
   • Medical payments coverage is not required. If an insured does choose to buy medical payments, the minimum limit is $1,000.
5. “No Stacking” Rule:
   • The bill bans “stacking.” Stacking allows insureds to multiply motorist benefit by the number of vehicles they have insured. For example, if a policyholder has uninsured motorist limits of $50,000 on three vehicles, the available compensation would amount to $150,000.

Please be aware that these limits are state minimums and our agency standard of coverage is much higher. If you have any questions regarding the new changes in Wisconsin auto insurance requirements, feel free to contact us.

For more information, please visit the Independent Insurance Agents of Wisconsin website.

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