MODEL BILLS

Minimum Auto Insurance Fairness Act

Summary: All states have minimum required insurance coverage for autos, but many of them are absurdly low, often because they were last adjusted decades ago. The Minimum Auto Insurance Fairness Act increases the minimum insurance required in order to keep pace with the rising cost of auto accidents.

NOTE: In every state, minimums are already set in the law. All the legislation has to do is change the existing dollar amount.

SECTION 1. SHORT TITLE

This Act shall be called the “Minimum Auto Insurance Fairness Act.”

SECTION 2. FINDINGS

The legislature finds that:

1. All states legislate the minimum required insurance coverage for autos.
2. In the State of [State], the current minimums are: [list them].
3. Since the most recent minimums were set, the average cost of an automobile has increased by XXXXX and the average cost of medical treatment at a hospital emergency room has increased by XXXXX.
4. Four states, California, North Carolina, Utah and Virginia have recently increased their mandatory minimum liability limits to keep pace with the rising costs of care repairs and medical bills.
5. It is fundamentally unfair for the innocent victim in an auto accident to have to pay huge sums for repairs and medical costs because the driver at fault was underinsured based on a state’s mandatory minimums.

SECTION 3. AUTO INSURANCE MINIMUMS

After section XXX, the following new section XXX shall be inserted:

The minimum auto liability limits shall be: [Adjust the amounts so the are appropriate for your state.]

1. $50,000 bodily injury liability per person
2. $100,000 bodily injury liability per accident
3. $25,000 property damage liability per accident
4. $25,000 uninsured motorist coverage per person
5. $50,000 uninsured motorist coverage per accident

SECTION 4. EFFECTIVE DATE             

This law shall become effective on July 1, 202X.