Wisconsin drivers may be facing an increase in car insurance costs under Gov. Jim Doyle’s budget proposal for 2009.

The proposal, currently being debated by state lawmakers, would be the first change to Wisconsin auto insurance laws in more than 20 years.

Wisconsin does not require drivers to have car insurance, but for those that do, the current minimal car insurance coverage in Wisconsin is defined as $25,000 for personal injury, $50,000 for accident and $10,000 for property damage.

Doyle’s proposal calls for $100,000 to cover personal costs, $300,000 for accident charges in which two or more people are involved and $25,000 for property damages, said Rep. John Nygren, R-Marinette.

Sean Dilweg, state commissioner of insurance, said some provisions would benefit drivers in areas that are not currently covered by insurance.

For example, the new proposal will aim to define what a “hit” is. If a driver were to swerve off the highway to avoid a pile-up, the current law allows the insurance agency to deny paying for any damages even though a collision with another vehicle may not have occurred.

Under Doyle’s proposal, insurance companies would be involved in these types of incidents.

Although all Wisconsin drivers would likely have to pay more for their insurance under the governor’s plan, the proposal would likely hit certain drivers, such as college students, much harder.

“When I see how it’s going to impact some of the consumers, I think it changes its tune a bit,” said Brad Bodden, an insurance agent at American Family Insurance. “People less than 22, in the ballpark, is the market that’s going to be hit the most by this.”

To help consumers understand the effects of the proposal, Bodden showed the increase in cost for a student who drives a Ford Focus and has only two tickets. His results revealed that with the new mandated limits, the cost for insurance for that student would cost $300 more per year, about a 20 to 40 percent increase.

At a time when people in the lower income brackets are already struggling due to the economic recession, the proposal comes as a bit of a shock to some legislators, including Nygren.

“Wisconsin has the third lowest premiums in the nation. To mess with it is a real concern of mine, especially in a tough time,” Nygren said.

Nygren also stressed that 96 percent of all current claims are under $15,000. He argues that rates don’t have to be increased because the current level of liability is already covering most situations.

He also added trying to protect those lower income people who are struggling just to pay the insurance premiums they currently have is something to fight for. If rates do increase, he is afraid more people will make the decision to drive uninsured.

Dilweg explained he plans to analyze the effects the proposal will have on the markets and report to Doyle if the specifics of the plan will benefit Wisconsin citizens more than the current insurance laws.