Wisconsin Legislators Shift Blame to Each Other

By
Published:

Auto insurance providers in Wisconsin began mailing policyholders that their premium rates are likely to go up soon because of new state legislations. But no legislator would take responsibility for the increase and as consumer groups would note it, politicians are scrambling to avoid blame.

Wisconsin Legislators Shift Blame to Each OtherChanges that will affect premium rates will begin taking place on November 1. More cost increases are expected to come next year when all motorists will be required to carry liability insurance. Minimum levels of coverage are also increasing, so Wisconsin drivers have more reasons to expect to pay more when they renew their policy.

Some car owners already start receiving mail notices, advising them that their rates will go up for several hundred dollars. One motorist says he got a letter saying coverage for his three vehicles was going up $231.

Consumers complain about the rate hikes, noting that their excellent driving record would go to waste as it will not keep costs from rising.

This had Republican lawmakers pointing their fingers at the Democrats, who passed the new state legislatures. But the Democrats refuse to take the blame, saying that any increase in premium rates is due to the business decisions of Wisconsin auto insurance providers and has nothing to do with actions taken by Wisconsin Legislature.

But some consumers are not buying the explanation of Democrat lawmakers. They noted that auto insurance agents are pointing to legislative changes as causes of price hikes, a claim Republicans are banking on to gain an upper hand in the close battle for political popularity in the state according to analysts.
Naturally, the Democrats did not concede, arguing that car insurance providers are merely using Legislature as an excuse to generate more profit.

Meanwhile, Wisconsin Insurance Alliance says assertions by Democrat lawmakers are flat out wrong. The group of carriers adds that they spend $500,000 to lobby against the changes.

Amidst imminent cost hikes, the office of the Wisconsin Commissioner of Insurance assures motorists that not all of them will have to pay more upon purchasing coverage. Office representatives explained that increase depends on several factors which is why it still pays to have an excellent driving record.

However, state regulators cannot determine yet how much, or what the impact changes would cause on individual policies. They explained that many policyholders purchase more than the minimum limits so it is difficult to determine the average price hike for consumers. They add that there are more than 200 insurance companies in Wisconsin, which is why rates are expected to vary widely.