Republicans Seek Changes to State Auto Insurance Law
Posted in Auto Insurance
November 5th, 2009
Republican lawmakers in Wisconsin say the changes Democrats made to state auto insurance laws are causing premiums to increase and should be repealed. They note that higher coverage limits imposed in a state budget bill have caused increases in the worst possible economic time. As a result, many drivers will be forced to drive their cars without insurance, effectively breaking the law after insurance becomes required for all drivers in 2010.
A Look at the Laws
The original law that stood in Wisconsin set the following minimum liability coverage standards:
- $25,000 for the injury or death of a person
- $50,000 for the injury or death of two or more people
- $10,000 for property damage
The provisions to this law include raises to the above as follows: $50,000 for injury or death of a person, $100,000 for the injury or death of two or more people, $15,000 for property damage. According to lawmakers, these adjustments have a serious impact on premiums.
A Bill to Repeal
Sen. Michael Ellis (R-Neenah) joined other Senate legislators Tuesday, Nov. 3, 2009, to announce bills to repeal many of the changes made to the auto insurance law. At this point, they feel insurance limits don’t need to be increased. They feel that Democrats only increased the limits to get support from trial attorneys who support their campaigns.
Democrats, on the other hand, plan to fight to keep the new law as is, noting that the higher premiums will only affect 20 percent of drivers. They’re reasoning for keeping the law is that the dollar amounts of coverage for the old law were outdated.
However, one Democrat, Sen. Tim Carpenter, is backing the repeal, feeling that at this point, the increases could prompt companies to take advantage of customers.
Do you feel that increased auto insurance minimums are appropriate in tough economic times?