Wednesday, June 10, 2009

Assembly Democrats Leave In Auto Insurance Mandate

Well, they got one right but blew it on this one.

Assembly Democrats voted to keep language in the 2009-11 budget plan that would require motorists to purchase higher minimum coverage for auto insurance, according to a spokeswoman for Assembly Speaker Mike Sheridan, D-Janesville.

The measure increases, over three years, the minimum coverage for injuries to one person in an accident to $100,000, and mandates coverage of $300,000 overall for all injured parties in a crash. It also requires $25,000 in property damage protection.

Business groups have argued that changes could cause auto insurance costs to rise.

Don’t you love the reporter?  “Business groups have argued that changes could cause auto insurance costs to rise.”  Hey Mark.  Yeah you.  *smack*  If the insurance company is liable for more money at the same level of risk, costs WILL rise.  There’s a difference between trying to remain neutral and trying to paint an economic reality as just the opinion of the opposition.

In any case, the biggest problem with this is that auto insurance in Wisconsin is not mandatory.  When costs go up, fewer people will carry insurance.  It’s a simple demand curve.  So those of us who do carry auto insurance are at more risk at being hit by an uninsured driver and being hung out to dry if the other guy is at fault. 

Nice, eh?

(3) Comments
Posted by Owen at 1952 hrs
Politics + Politics - Wisconsin

  1. The fact that the dems proposed this is proof that they represent their special interests.  Not the working man like they want you to believe.  They only backed down due to pressure from the opposition.

    Yea I know, Republicans represent the evil corporations…

    Posted by .(JavaScript must be enabled to view this email address) on June 10, 2009 at 2232 hrs


  2. Spectacular.  I didn’t think $1500 a year for insurance on my cars was enough.

    Posted by Mike Gallo on June 11, 2009 at 1044 hrs


  3. I don’t have a problem with the insurance requirements.  If you are not carrying more insurance than those limits you are putting all of your property at risk. 

    But Owen correctly observes that the problem is that the bill loses its teeth because Wisconsin does not require auto insurance.  Perhaps that’s in next year’s budget.

    Posted by .(JavaScript must be enabled to view this email address) on June 11, 2009 at 1657 hrs


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