Workers and others continue to protest in the tens of thousands in Wisconsin against Gov. Scott Walker’s budget-repair bill that would end the rights of state workers to collective bargaining. Following the investigative report that revealed a conspiracy orchestrated by state Republicans and billionaire businessmen who regularly throw their money into politics, the American public has come out in every state to rally against the anti-union efforts. This news has also rendered the argument that removing labor rights would cut the budget null and void. Analysts, both conservatives who are disgusted with the conspiracy-like political games and liberals, have said that these measures are part of a larger scheme across the country to make corporations more profitable at the cost of workers.
So how does this affect your auto insurance?
Wisconsin state Republicans are also voting for a rollback of state mandates that were passed in order to protect consumers from being overcharged, under-covered, and unfairly dropped by their insurance providers.
The 2009 Bill
The then Democrat-led state legislature voted to increase the minimum levels of coverage required for all registered Wisconsin drivers. The argument given was that the previous minimums were outdated-they hadn’t been updated since the 1980s-and that health care costs had shot up considerably since then, so crash victims were not adequately protected.
The Republican Opposition
Republicans have argued that the legislation has only increased the cost to consumers, since they are now required to purchase more coverage. They argue that by rolling back the measures, they can ease the burden on policyholders who cannot afford to pay so much for auto insurance.
However, this assumes that people only need the absolute minimum insurance mandated by the state. In over 90% of cases, experts recommend that drivers purchase more than the state minimum coverage to protect themselves in terms of health and finances.
If people were to purchase the amount of coverage they need, regardless of state minimums, then rates are actually much cheaper under the current laws and rollbacks would likely increase the burden on the average citizen significantly.
Industry Reaction
The industry has argued that the rates of consumers have gone up roughly 33% since the new coverage mandates were put into place. They say that the measure should be rolled back to save consumers money.
Critics have pointed out that it is hardly likely that insurance companies would be complaining about making more money. Policyholders getting the coverage levels they need will pay more if the legislation passes. Continue reading →