Zip Codes No Longer Rate Factors in Car Insurance Premiums in Milwaukee


With a proposal at works in the state Legislature of Milwaukee, car insurance would soon cost pretty much the same regardless of your place of residence. Whether you live in an area posting high risks or in a rural town that is not too populated, car insurance would still cost the same. This is in response to the movement of Democratic legislators who pushed for the revival of the plan, in spite of Governor Doyle’s veto movement of a similar measure, as included in the current state budget.

Zip Codes No Longer Rate Factors in Car Insurance Premiums in MilwaukeeIn general, car insurance per vehicle would cost approximately 50% to 60% higher in Milwaukee areas that are heavily populated. This is true unless the insured’s credit score extends its influence onto the price of his or her premiums. The cost is higher in more populated areas because there are more risks of vandalism, theft, and other types of vehicular accidents.

With the intent to scrap off ZIP codes from the list of factors influential on Milwaukee auto insurance premiums, car insurance should then be priced much more fairly across the whole state of Milwaukee. With much hope of the proposal being approved and implemented soon, Democratic legislators are looking forward to seeing significant results taking place early next year.

State Representative Leon Young further indicates that this move is highly motivated by the imminent need to make car insurance more affordable across the state. Even if it is mandated by law to take out car insurance, there are still drivers who go through a lot of hesitation before taking out policies for their own protection – and price is one of the huge barriers to consider here. With this move, more car drivers would then be enticed to take out car insurance.

The car insurance industry, on the other hand, opposes the passing and implementation of the bill. Car insurance companies are saying that if this were implemented, then motorists residing in less congested areas would then have to pay higher premiums. Moreover, car insurance companies are saying that the current practice is actually fair enough since companies would be able to handle the higher risk that comes with living in a congested area through the higher premiums.

For his side, Governor Doyle explains why he vetoed the provision. Doyle explained that the provision would only disrupt the otherwise fair system of the car insurance market because it would just lead to an increase in premiums for so many policyholders living in affected locations. Still, the governor has yet to look at the bill itself so there still might be some room for consideration on his part.