Auto insurance rates might go down for the Wisconsin drivers. Republican lawmakers are debating the need to roll back the rules that mandate auto insurance coverage for certain levels. The state needs drivers to carry insurance coverage of at least 50,000 dollars for death or injury to one person, 100,00 dollar worth coverage per accident and 15,000 dollar coverage for damage to property. This rule came into effect since June of last year. Prior to this, Wisconsin was one of the two states in the country where auto insurance wasn’t mandatory for the drivers.
A joint committee of lawmakers recently discussed the proposal to mandate auto insurance but lower the level of insurance coverage to 25,000, 50,000 and 10,000 dollars in the above categories respectively. Sponsor of the bill, Republican John Nygren, R-Marinette, stated that this is about ensuring that auto insurance is far more affordable for everyone. According to Nygren, many of the constituents are claiming that the higher levels of insurance mandated have made some drivers forgo auto insurance completely. The bill will try to blend the residents’ expectations with the minimum requirements for the drivers’ safety. The statistics haven’t come in and so some feel that the current law could be in place for a slightly longer time, before they could be repealed.
According to Republican Molepske, the data hasn’t indicated towards the premiums going up significantly. In fact, the rates have come down in some geographic areas. However, Molepske agreed with the Nygren’s point on the choice of the residents rather than the state mandating the rules. Insurance company representatives are in general, favouring the coverage rate rollback as that would give greater choice to consumers when it comes to the insurance policies. Issues according to various associations arose from choice and the people’s inability to pay higher rates. Some drivers, who only can afford the minimum insurance, would now need to buy more and hence pay more, in order to be compliant with the law. As per the estimates people are expected to pay 42% more than the minimum. This is where many people were faced with the tough choice of forgoing the insurance or paying a much higher one.
According to some experts though, the current levels of coverage offer good protection and anything less than that would be misrepresenting the coverage required. Some argue that in spite of all efforts all drivers wouldn’t carry insurance and therefore current rates and indeed necessary.
