WASHINGTON, D.C. – The American Insurance Association (AIA) commended the Wyoming House of Representatives for rejecting H.B. 168, Motor Vehicle Financial Responsibility, a bill that would likely have increased costs and led to more uninsured motorists in Wyoming. HB 168 proposed to increase the financial minimum limits on personal auto liability coverage from 25/50/20 to 50/100/25 for bodily injury or death, and injury to or destruction of property. In addition, HB 168 would have mandated UM/UIM coverage (at the level of the proposed financial minimums) and no longer allowed it to be an optional coverage.
“The defeat of this legislation is a victory for Wyoming insurance consumers during this most difficult economy,” says John Marlow, AIA assistant vice president of state affairs. “It’s unnecessary to mandate higher minimums as long as people may purchase higher limits on their policies if they wish, rather than being forced to do so.”
According to AIA, existing limits are more than satisfactory to cover typical liability exposures. ISO Fast Track Data for 2007 shows that private passenger auto liability paid claim severity averages in Wyoming were $14,851 for bodily injury liability and $2,877 for property damage liability — well below the current financial minimum coverage required by law.
“This bill would have negatively impacted the most economically vulnerable drivers who are trying to meet the state’s current legal requirements for auto insurance coverage,” says Marlow. “Consequently, this legislation would have inadvertently pushed more drivers into the ranks of the uninsured.”
For more information visit www.aiadc.org.
