Republicans Miss the Point on Auto Insurance Provisions

Republicans Miss the Point on

Auto Insurance Provisions 

MADISON – The Republican Party of Wisconsin (RPW) has once again missed the point on important consumer protections for Wisconsin citizens, this time by using false claims about the automobile insurance provisions of the state budget in an attempt to target Democratic legislators.

The budget signed by Governor Doyle this year updates the minimum coverage levels for uninsured an underinsured driver insurance – levels which have not been increased since 1982 – while also making it mandatory for all motorists to have a vehicle liability policy.

Contrary to information in mailings sent out by the Republican Party of Wisconsin, these important provisions will stop the skyrocketing prices of auto insurance in Wisconsin and update coverage levels to current standards. While the RPW and some insurance companies want Wisconsinites to believe the state budget will cause increased premiums, the rates have increased 21% in Wisconsin from September 2008 through July 2009[1], showing that significant increases were already taking place before the budget was even signed.

“Mandatory coverage will benefit families across Wisconsin as a competitive market brings insurance premiums down to affordable levels,” said Democratic Party of Wisconsin (DPW) Chair Mike Tate. “The provisions in the budget protect the hard working citizens of Wisconsin while saving them money.”

As auto insurance companies continue to nickel and dime Wisconsin families, their lobbyists have already spent more than $1.2 million this year opposing the increased consumer protection. In fact, it was insurance industry insiders who removed most of these consumer protections from Wisconsin law in 1995, increasing industry profits.

“The insurance industry and their Republican allies have already done enough damage to Wisconsin families,” said Tate. “These aren’t radical changes, but they are changes that will benefit drivers across Wisconsin.”