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6/24/2009
Grothman: Remove provision raising costs of auto insurance
Senators Erpenbach and Miller’s statement on the floor of the State Senate bamboozled Democrats into a bad vote
I urge Democratic conferees to remove their budget provision increasing minimum limits on auto insurance from $25,000 per person and $50,000 per occurrence to $100,000 per person and $300,000 per occurrence. The mandated increases will force people with less expensive insurance policies to pay much higher premiums.
The increase is nothing but an affront on the lower income strata of society. Most of us at one time had lower limits when our income was lower and we had fewer assets to protect. To side with the trial lawyers against the average guy just starting out is appalling. To make matters worse, it appears as though Senator Erpenbach and Senator Miller have misled their fellow Democrats as to the huge effect of this change on premiums.
On the Senate floor, Senator Erpenbach (D-Middleton) said, “You are probably at the 100-300 right now. Call your insurance agent; find out how much it will cost to go down to the bare minimum in this state. According to the Senator from the 16th (Miller) it would save him $16 a car. Insurance isn’t going to go up and if it does, it’s because they are greedy, pure and simple.”
I would like Senator Erpenbach and Senator Miller to clarify and document this statement. After discussing this matter with several insurance agents, it is apparent that Senator Miller is talking about a monthly change for a middle-aged person with a good driving record. In general, this change will result in a 40% increase in liability premiums. While a male who is married with a good driving record may pay another $120 a year, a male under 30 with a bad driving record will be forced to pay an additional $300 dollars a year. You have to remember one reason people have low limits in the first place is because they have a bad driving record and they can’t afford more. I strongly urge all Democrats to talk to their insurance agents and see how much they are hurting people in our state in order to make the trial lawyers happy.
Glenn Grothman is a Republican and represents the residents of the 20th Senate District.
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