Extended exposure reveals shortcomings in almost any budget proposal. That has happened to Gov. Jim Doyle's plan to address the state's budget shortfall as it receives more scrutiny.
A fair amount of attention is beginning to be paid to a puzzling provision in Doyle's budget that would drive up insurance rates for many Wisconsin drivers. The governor's budget includes a mandate to increase minimum insurance coverage. The current minimum liability limits in Wisconsin are $25,000 per person, $50,000 per accident and $10,000 for property damage. Doyle's budget would increase those limits to $100,000 per person, $300,000 per accident and $25,000 for property damage.
The Insurance Alliance of Wisconsin estimates the budget provision would increase the average price of auto insurance by $300 per year. It would put Wisconsin limits among the highest in the nation, though the state does not require drivers to have auto insurance - which is a bit puzzling itself.
While the governor's office contends the higher limits would bring insurance more in line with the rising cost of medical treatments, there is no clear benefit to drivers or to the state economy in Doyle's provision.
It certainly could be a boon for insurers, so it's telling that the auto insurance industry has publicly opposed the higher limits.
The legitimate concern is that the higher limits, and hence higher premiums, will force more state drivers to be uninsured - particularly when they're not required to have insurance. Wisconsin's rate of uninsured drivers already is slightly above the national average.
And as Rep. Brett Davis, R-Oregon, pointed out in an op-ed Saturday, the Insurance Research Council and Insurance Alliance of Wisconsin have statistics that show the higher limits proposed by Doyle mostly are unnecessary. Ninety-six percent of all bodily injury claims are $15,300 or less, and more than 90 percent of auto claims are settled below $25,000.
The Doyle auto insurance provision is a sucker punch to consumers, another body blow in an already bruising economy. The increased limits will be a financial hardship to drivers with no clear benefit to the state budget or economy.
Lawmakers should ensure the higher limits are not forced on Wisconsin's citizens.
A fair amount of attention is beginning to be paid to a puzzling provision in Doyle's budget that would drive up insurance rates for many Wisconsin drivers. The governor's budget includes a mandate to increase minimum insurance coverage. The current minimum liability limits in Wisconsin are $25,000 per person, $50,000 per accident and $10,000 for property damage. Doyle's budget would increase those limits to $100,000 per person, $300,000 per accident and $25,000 for property damage.
The Insurance Alliance of Wisconsin estimates the budget provision would increase the average price of auto insurance by $300 per year. It would put Wisconsin limits among the highest in the nation, though the state does not require drivers to have auto insurance - which is a bit puzzling itself.
While the governor's office contends the higher limits would bring insurance more in line with the rising cost of medical treatments, there is no clear benefit to drivers or to the state economy in Doyle's provision.
It certainly could be a boon for insurers, so it's telling that the auto insurance industry has publicly opposed the higher limits.
The legitimate concern is that the higher limits, and hence higher premiums, will force more state drivers to be uninsured - particularly when they're not required to have insurance. Wisconsin's rate of uninsured drivers already is slightly above the national average.
And as Rep. Brett Davis, R-Oregon, pointed out in an op-ed Saturday, the Insurance Research Council and Insurance Alliance of Wisconsin have statistics that show the higher limits proposed by Doyle mostly are unnecessary. Ninety-six percent of all bodily injury claims are $15,300 or less, and more than 90 percent of auto claims are settled below $25,000.
The Doyle auto insurance provision is a sucker punch to consumers, another body blow in an already bruising economy. The increased limits will be a financial hardship to drivers with no clear benefit to the state budget or economy.
Lawmakers should ensure the higher limits are not forced on Wisconsin's citizens.
