Schultz backs repeal of costly car insurance mandates

State Senator Dale Schultz is backing a bill to repeal costly car insurance mandates forcing premiums up 40 percent and more on drivers across Wisconsin.

Schultz (R-Richland Center) said the mandates especially hit families with less income during the current severe economic downturn.

"We’re in a tough time and the legislators who voted for this hidden tax hike in the budget can now help correct the mistake by supporting the bill to repeal it,” Schultz said.

Schultz said the bill he's coauthoring repeals increased mandatory minimum amounts of liability coverage, increased mandatory minimum amounts of uninsured-driver coverage, mandated coverage for underinsured drivers and the stacking of up to three insurance policies.

Schultz said public policy like car insurance law had no business being included in a fiscal budget in the first place.  When the budget was debated in the Senate, Schultz sought to pull the provisions but fell two votes short.  But Schultz thinks the repeal bill can pass.

“We can repeal this if people facing car insurance hikes of hundreds of dollars a year contact legislators that voted for the budget,” Schultz said.  “We only need a handful of those legislators to listen to those unhappy voters.”

Schultz said if the car insurance mandates remain, Wisconsin will go from one of the most affordable states for car insurance to one of the most expensive.

“The experience in other states is that high car insurance rates cause low income people to drive without any insurance,” Schultz said.  “People decide to risk the $500 fine if are caught driving without insurance.”