| Wisconsin Act 28 – our “budget”
As many of you have heard or seen in the news, last fall the State of Wisconsin passed Wisconsin Act 28. This act contained several provisions pertaining primarily to automobile insurance in the State of Wisconsin. They are as follows:
a. “Stacking”. The insurance statutes now contain a stacking provision for Medical Payments and Uninsured and Underinsured Motorist Bodily Injury coverage. This stacks the limits for these coverages on your policy based upon the number of vehicles you have insured, up to 3 vehicles stacked. This means that everyone in the state with more than one vehicle has significantly more coverage in these areas. This coverage cannot be rejected.
b. “Medical Payments”. The minimum limit for medical payments coverage in the State is now $10,000 per person. Everyone who had limits lower than this will see their limits increased to $10,000 as their policies renew. This coverage can be rejected in writing.
c. “Minimum Limits”. The minimum limits of liability insurance in Wisconsin were previously $25,000 per person, $50,000 per accident for bodily injury liability and $10,000 for property damage. The new minimum limits are $50,000 per person and $100,000 per accident for bodily injury and $25,000 for property damage. As Uninsured/Underinsured motorist bodily injury now cannot be rejected, its minimum limits are now $100,000 per person and $300,000 per accident. This means that all policies will be written with limits of at least $100,000 per person, $300,000 per accident for bodily injury and $100,000 for property damage so that all limits match. Everyone with limits less than this will see their limits increased at renewal.
d. “UM/UIM on Umbrellas”. Everyone in the State is now required to be offered Uninsured and Underinsured Motorist bodily injury coverage on an umbrella policy. This coverage can be rejected, but the insurance carrier must provide you with the coverage on your umbrella unless they have a signed rejection form in their file. Therefore everyone with an existing umbrella policy will see their umbrella renew with this coverage now added. Most carriers send a rejection form and explanation with the renewal. If rejected, the coverage will be removed. Everyone who completes an application for a new umbrella policy must elect whether to purchase the coverage or not and sign a rejection form if coverage is not desired.
e. “Mandatory Insurance”. Effective this summer, Wisconsin will move from a compulsory insurance state to a MANDATORY insurance state. This means that all vehicles operated in the State must carry at least the minimum limits of liability insurance required by the State. Everyone must provide proof of insurance if asked by a law enforcement officer or a fine will be assessed. Proof must be presented in the event a citation is issued. Failure to do so could result in a suspension of driving privileges. It is important to keep your insurance card IN YOUR VEHICLE. We offer insurance card ID envelopes in our office free of charge. Feel free to stop in and pick one up or give us a call and we will send you one in the mail.
Wisconsin Act 28 contains numerous other provisions, the above is only meant to be a summary of those items that most affect you and your personal auto insurance. All of these changes certainly come at a cost. All of us should expect to see changes on our personal auto insurance policies when they renew after January 1, 2010. Feel free to contact our office if you have any questions.
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