New Unnecessary Legislation for Auto Insurance in Wisconsin
There is a reason why the law enforces state minimum car insurance requirements. Not only does auto insurance pay for damages on your car, it protects you, and your passengers, in the event of an accident.
The most recent data from the Wisconsin Department of Transportation reports that in 2009 alone, 41,589 people were injured by car accidents, 542 people were killed, and 79,596 issues of property damages were reported, totaling up to $2.56 billion dollars worth of damage altogether.
Uninsured motorist and underinsured motorist are two of the coverages that are most important in protecting you and your loved ones if you are unfortunate enough to have an accident. Uninsured motorist coverage protects you against a careless driver that is not insured. Underinsured motorist coverage is similar; in the event that the other driver does not have enough insurance, your insurance company will cover additional costs not covered by their insurance. It is also important to understand that this coverage does not limit to you as a driver or passenger – it will protect you and your family as a pedestrian or a cyclist.
A story publicized earlier this month in the Wausau Daily Herald spoke about Governor Scott Walker’s new law, which will now allow insurance providers to add “anti-stacking” provisions and “reducing clauses” in insurance contracts. The Herald untruthfully stated that this new law would not change mandatory underinsured coverage; however, the new law would, in fact, only require insurance agents to offer the coverage to clients. This could have a devastating result for many individuals who are not aware that this coverage is vital to carry.
While Governor Walker is proclaiming this legislation to be “consumer friendly,” it is quite the opposite. Some of the degenerate provisions include:
– Reducing clauses which permit insurance companies to supply their clientele with less coverage than what the client is actually paying for. For example, you are a driver with $100,000 in underinsured motorist coverage. Another driver hits you who only has $50,000 in liability coverage. Your insurance company would legally be responsible for only $50,000, no matter the severity of your injuries.
– Allowing insurance companies to reduce payouts to only one family vehicle, even though you have multiple premiums to cover all of the family vehicles.
– Allowing insurance companies to limit claims for the severely injured by redefining underinsured motorist coverage.
– No longer requiring commercial clients (bus and trucking companies) to carry uninsured/underinsured motorist coverage.
– Regressing to limits established in 1982: only requiring a minimum $25,000/person liability.
Governor Walker claims that the 2009 auto insurance reforms created destitution for consumers and insurers. However, according to an article in the Wisconsin State Journal on March 3, the largest auto insurer in Wisconsin, American Family Insurance, had almost a 90% increase in net income in 2010; specifically, a $231 billion increase in income from 2009-2010.
What about consumers, how were they affected? According to carinsurance.com, auto insurance rates were an enormous 24% lower in 2010 than 2009! This is drastically different from the insurance companies’ estimate that premiums would increase by 30% in 2009.
Altogether, Walker’s arguments hold no ground. This new legislation that neither consumers nor insurers need takes away valuable protection for individuals and families.
Without putting in a lot of work, it’s very difficult to get great deals on insurance quotes. Don’t be surprised if your insurance rate goes down substantially if you drive safe.
Processing your request, Please wait....
