Critics Blast Bill to Reduce Wisconsin Auto Insurance

A Republican plan to scale back mandatory car insurance levels would make driving in Wisconsin riskier and leave injured motorists holding the bag, the proposal’s critics said.

The GOP has introduced a bill that would essentially repeal provisions in the state budget that laid out minimum coverage levels for liability, underinsured motorists and uninsured motorists and replace them with lower standards.

Republicans say the public didn’t get a chance to sound off on the mandates. They also argue the minimums are too high and have driven insurers to raise premiums, forcing people to forego insurance.

But Democrats and their allies complained at a hearing before the Senate and Assembly insurance committees reduced coverage levels would deprive injured drivers of money they need to recover and no hard evidence shows the budget mandates have contributed to higher premiums.

“We’re probably spending more on this hearing than this (the minimum standards) costs us,” Rep. David Cullen, D-Milwaukee, a member of the Assembly insurance committee, said.

Democrats included provisions in the 2009-2011 budget that made car insurance mandatory in Wisconsin. It also laid out minimum coverage levels for liability and underinsured and uninsured motorists. State regulators and the insurance industry say the provisions have led to higher premiums.

Car insurance would remain mandatory under the bill. But minimum levels would drop, sometimes by tens of thousands of dollars in some categories. For example, current liability minimums of $50,000 for injuring or killing one person, $100,000 for injuring or killing two people and $15,000 for property damage would drop to $25,000, $50,000 and $10,000.