Wisconsin Senate Passes Lower Car Insurance Levels

The Wisconsin state Senate has passed legislation that would lower minimum levels of car insurance and make it more difficult to approve of sales and income tax increases.

Car insurance would still be required under the bill passed on a bipartisan 25-7 vote, but the levels of coverage required would drop. Democrats approved higher limits in 2009 when they controlled the Legislature. Most of the changes took effect in 2010 after more than 20 years of no changes.

The higher requirements were a popular campaign target for Republicans who won control of the Legislature in the November election, and they passed the bill quickly. Republican Gov. Scott Walker has said he supports the lower minimum and will sign the bill if it’s passed. It cleared the Assembly last week on a preliminary vote, but Democrats used a procedural move to delay a final vote until later this month.

Bill sponsor Sen. Frank Lasee, R-De Pere, said the measure would give consumers more choice about the level of insurance they want to purchase and lower costs for everyone. Democratic opponents said there’s no evidence that premiums or rates have gone up and repealing the changes now would only allow insurance companies to charge more for less coverage.

The bill would reduce the minimum coverage for liability and uninsured drivers insurance. It would make coverage for underinsured voluntary again, as it was before the 2009 law passed. Underinsured coverage kicks in when the motorist who caused the accident has lower liability limits than the amount of damage.

The changes would take effect six months after the governor signs the bill.

Voting against the bill were Sens. Tim Carpenter, D-Milwaukee, Tim Cullen, D-Janesville, Dave Hansen, D-Green Bay, Bob Jauch, D-Poplar, Chris Larson, D-Milwaukee, Mark Miller, D-Monona, and Fred Risser, D-Madison.

Only one Democrat, Sen. Julie Lassa of Stevens Point, supported the bill to require a two-thirds vote to raise taxes, instead of a simple majority. It passed 20-12 and has Walker’s support. If it becomes law, 22 of the state’s 33 senators would have to vote yes to raise sales or income taxes. In the Assembly, it would take 66 votes instead of 50.

Democratic critics argued the requirement is meaningless since it doesn’t prevent lawmakers from raising fees or a host of taxes other than those on sales and income.

The state’s 5 percent sales tax rate hasn’t increased since 1982. The 7.9 percent corporate income tax rate hasn’t gone up since it was created in 1981. Individual income tax rates vary based on income, with the highest 7.75 percent rate added in 2009.

Democrats asked why Republicans thought it was necessary to require more votes to raise taxes when they control the Legislature and can do whatever they want.

“Are you afraid with that total political power you might do something you don’t want to do?” Risser said.

Bill sponsor Sen. Leah Vukmir, R-Wauwatosa, said the measure sends a clear message that Republicans are serious about their commitment not to raise taxes. She also supports putting the two-thirds requirement in the constitution, something that would have to pass the Legislature in two subsequent sessions as well as be approved by voters statewide.

Sen. Jon Erpenbach, D-Waunakee, called the bill a joke.

“This is a piece of red meat to please a particular political party,” he said.

Topics Auto Wisconsin Politics