Capitol Connection
By Senator Joe Leibham
November 12, 2009

Reconsidering Questionable
Insurance Policy Provisions

Several weeks ago, I provided you with an in-depth analysis of changes that were made to numerous state laws that relate to automobile insurance. Each of these policy changes were approved as part of the 2009-11 state fiscal budget and therefore received little, if any, public or legislative consideration. In fact, I would argue that most legislators who voted for the budget still don’t realize what they voted for, if these changes were even necessary, or what impact these revisions are having on auto insurance rates.

Now, as many of the new laws are being implemented, policy holders are learning of the changes and, in many cases, realizing that their auto insurance rates are increasing, some by as much as 40 percent.

These changes should never have been approved as a part of the state budget. The public deserves the opportunity to understand the proposed changes and the chance to provide input to the legislature before they are approved. This is how the legislative process is supposed to work.

Please know that I offered an amendment during the budget deliberations that would have removed these, and all other policy items, from the fiscal budget. Unfortunately, this amendment was rejected by the Democratic majority.

In response to questions I am receiving from many frustrated constituents, I have decided to co-author legislation that seeks to repeal most of the changes so they can be considered as separate legislative bills and receive the attention they deserve. Specifically, my proposal will repeal the non-fiscal budget provisions that:

  • Increased the mandatory minimum amounts of liability coverage;
  • Increased the mandatory minimum amounts of uninsured driver coverage;
  • Mandated coverage for underinsured drivers; and
  • Allowed for the “stacking” of up to three auto insurance policies.

Analysts have estimated that, under these new laws, Wisconsin drivers will go from having among the lowest auto insurance rates in the nation to having among the highest.

My bill will not repeal the provision that will require anyone operating a vehicle in Wisconsin to have automobile insurance.

I am hopeful the bill will receive consideration and approval by the legislature over the next couple of months. Without a doubt it faces an uphill battle, but I believe it is the right thing to do and look forward to a good debate.

Maybe some of these changes have merit? Unfortunately, due to the sneaky way in which they were approved, we have never had an honest discussion on the proposals. Is that too much to ask for from our legislature and Governor?

If you agree, please help me by contacting your State Representative and Governor Jim Doyle. Respectfully ask them to support the repeal the auto insurance provisions approved as a part of the state budget and allow them to be openly and honestly discussed as separate legislative proposals.


As always, it has been a pleasure communicating with you.  Please remember to communicate with me and share your input by calling 888-295-8750, writing to me at P.O. Box 7882, Madison, WI 53707-7882, or by e-mailing me at Sen.Leibham@legis.wi.gov.  You can also log on to the 9th Senate District on-line office at www.leibhamsenate.com

It is an honor representing the residents of the 9th District in the State Senate.