October 19, 2009 - The governor of Wisconsin, Jim Doyle has implemented a plan for extensive changes in the state's auto insurance industry. As of the 1st of November, the minimum coverage limits for limited liability on all Wisconsin auto insurance policies will increase significantly. The current limits of $25,000/$50,000/$10,000 for personal injury, bodily injury per occurrence and third party property damage will increase to $50,000/$100,000/$15,000. This is the first time that minimum liability coverage limits have been increased since 1982.

Representative Donna Seidel notes that policies at the current base levels are rarely sold anyway. "In 1982, the current costs equal what is $105,000 in medical expenses today. So with the escalating costs of health care costs, the $25,000 was just a completely unreasonable level that again almost no one carries." she states. She also points out that over 80% of motorists in the state already maintain policies that provide at least the new minimum levels of coverage.

Opponents of this new plan claim that it will cause insurance premiums to go sky high.
There's no denying it; significant increases in auto insurance premiums are imminent. Representative Jerry Petrowski comments, "I have heard from constituents that their insurance is going to increase by $500 a year because of this stipulation in the budget." And that's quite logical - increased coverage equals increased premium rates. However, there's another clause of the new plan for insurance regulation that will also increase premium rates in a sweeping fashion. It's called stacking.

As of the 1st of November, insured motorists will be permitted to "stack" coverage from more than one policy. Here's an example:

• You maintain $250,000 of uninsured motorist coverage on the vehicle that you drive;
• You also maintain the same coverage on two other vehicles within your household;
• You are involved in an accident with an uninsured motorist;
• You are able to stack your policies and receive up to $750,000 coverage on the current claim;

Again, it's logical that these increased insurance company payouts will also lead to increased policy premiums across the board. In Wisconsin, all drivers in the state will be mandated to strictly adhere to these new regulations as of June 1, 2010.

What this means for you:
Pharmaceutical companies, health care provision companies, governments - and insurance corporations do not take kindly to losing profits. Billions and billions of dollars in insurance claim payouts are made every year - and that hurts the profit margins of these insurance provision giants. The entire automobile insurance industry is showing initial signs of large scale reformations. When one state, like Wisconsin, "tests the waters", the rest will very likely follow - very soon. You should expect to see similar legislation being passed in your state as well. Current estimations are that average annual insurance premium expenses will increase by just about $500 per family.