Will Insurance Customers Change Companies When GOP Bill Doesn’t Cut Their Rates?

MADISON, Wis. — Insurance companies across the state could see a mass exodus of existing Wisconsin customers if rates do not drop immediately after passage of an insurance lobby-supported bill to reduce the required insurance coverage for state drivers. The insurance lobby has blamed required insurance levels for raising rates, leaving customers to reasonably expect rates to drop when the bill passes as part of Gov. Scott Walker and the Republican legislative majority’s historic job-free, deficit-hiking “Special Interest Session.”

“The state’s insurance lobby has all-but promised that auto insurance customers should expect an immediate rate cut in their auto policies,” said Scot Ross, One Wisconsin Now Executive Director. “If consumers’ rates do not immediately plummet, consumers across Wisconsin will quickly abandon their current insurance companies in search of better deals on the internet and television.”

Rep. John Nygren (R-Marinette), owner of Great Lakes Insurance and Finance, is the author of the insurance industry-backed bill (AB-4), which is expected to hit the floor of the legislature in January.

“The insurance industry chose insurance company owner John Nygren to write this bill for them to benefit the insurance industry,” said Ross. “Hopefully insurance company owner John Nygren realizes that insurance customers are going to be furious if insurance rates don’t immediately drop by 30, 40 and 50 percent, like the industry lobbyists implied.”

One Wisconsin Now was unable to determine how this piece of early legislation would create jobs or decrease the state’s $3.3 billion budget deficit, which Republican Gov. Scott Walker and the legislative Republican majority promised would be the state’s top priorities.

“I shudder to think about the insurance company jobs lost if Wisconsin insurance customers whose rates don’t drastically fall turn to other outside national sources for their insurance needs,” said Ross. “Wisconsin continues to wait for the first Republican piece of legislation this year that will actually create jobs, or reduce the deficit.”