The senate is likely to take up the insurance bill


shutterstock_19991086The senate is likely to take up the insurance bill on Tuesday in order to lower the minimum amount of insurance that motorists must carry and thereby reversing the higher minimums that was put in place couple of years ago by the Democrats.

The drivers will still be carrying insurance under this bill, but the insurance amounts could be much lower and this could in turn reduce the premiums and the financial burden for most families.  However, the critics have pointed out that by doing this the motorists could be putting themselves at a grave financial risk if they are involved in accidents.  A final vote is required for the bill to be passed in the Assembly.

Governor Jim Doyle as well as fellow Democrats who were in the legislature in 2009, had made auto insurance mandatory and required motorists to have a high minimum coverage.  Prior to that it was not compulsory for motorists to have insurance, but if they did purchase auto insurance they had to adhere to the minimums prescribed by the state.

The Republicans want to keep this requirement where people must have insurance but wish to bring down the minimum insurance required by the state.    Their argument is that the increase in minimums a couple of years ago has raised the premiums.  However, the opponents have disputed that claim.

The senate is also required to get two-thirds vote in both the houses to pass the bill and raise the income tax as well as the state sales tax.  This bill is by and large symbolic as the law that is passed by one legislature is not binding on what the lawmakers do in future.

However the supporters of the high auto insurance minimums which are now in place have said that the ones the Republicans are trying to push now was outdated as the healthcare costs  had gone up.

As per the previous law, motorists were required to carry minimum liability insurance of $25,000 for injury or death of one individual, $50,000 for injury or death of more than one individual, and $10,000 for damage to property.  The current limits are $50,000, $100,000 and $15,000 and the Republicans want to go back to the earlier limits. The Assembly had voted on Wednesday and had supported the insurance legislation.  However, the Democrats had blocked the final vote and have pushed it to Feb 22.