| 11/27/2009 11:00:00 AM | Email this article • Print this article | Our View: A chance to repeal insurance mistake
One of the most notorious nonfiscal policy changes included in the state budget approved last summer was the increase in the minimum limits for automobile insurance coverage in Wisconsin.
Prior to the budget's passage, the minimum liability limits in Wisconsin were $25,000 per person, $50,000 per accident and $10,000 for property damage. Pushed by Gov. Jim Doyle, the limits were increased in the budget to $100,000 per person, $300,000 per accident and $25,000 for property damage.
There was no budgetary benefit from including the coverage limit changes in the budget. The Insurance Alliance of Wisconsin estimated last spring that the provision would increase the average price of auto insurance by $300 per year. Wisconsin's limits now are among the highest in the nation.
The editorial boards of the Times and many other newspapers across the state urged lawmakers to remove the insurance limit increases from the budget, to no avail.
State Rep. John Nygren, R-Marinette, said his constituents are receiving letters in the mail from insurance providers quoting premium increases due to the changes. "We should not be surprised and we should not wonder why these increases are occurring," Nygren said. "We were warned."
Which is why Nygren has introduced an Assembly proposal to repeal the automobile insurance coverage changes. Sen. Mike Ellis, R-Neenah, has a Senate companion bill. There are 16 Senate co-sponsors and 47 in the Assembly. That means only one senator and three representatives need to add their support for a majority in favor of the bill.
That's good news, and hopefully a sign that lawmakers realize the mistake they made during the budget process.
There is no good reason for the higher limits, unless being a boon for insurers is a good reason. Interestingly, even the auto insurance industry opposed the higher limits. Studies showed the increases mostly were unnecessary. The Insurance Research Council and Insurance Alliance of Wisconsin showed that 96 percent of all bodily injury claims were $15,300 or less, and more than 90 percent of auto claims are settled below $25,000.
We said earlier this year that Doyle's auto insurance provision was a sucker punch to consumers. Before that sucker punch really starts to hurt Wisconsin drivers, lawmakers should approve a repeal of the increased limits.
 |  | |
|
|
Article Comment Submission Form
|
