For Immediate Release
Study proves mandatory auto insurance law has not led to rate hikes
MADISON, Wis. - The Wisconsin Association for Justice (WAJ) today praised an exceptional study released this week which debunked auto insurance industry claims that rates would soar with last year's passage of the Truth in Auto Insurance law.
"The Citizen Action of Wisconsin study proves the insurance industry was peddling false information in an attempt to defeat stronger consumer protections," said Paul Gagliardi, WAJ's President.
WAJ has strongly advocated for mandatory auto insurance and other changes to auto insurance laws, while saying that rates will not skyrocket because of these provisions. Truth in Auto Insurance greatly benefits consumers by offering stronger protections and wider coverage.
The insurance industry and some legislators claimed that rates would increase by at least 33 percent due to Truth in Auto Insurance but this study proves this to be false. The study shows that 2010 rates in Wisconsin were flat, increasing by less than 1% for top insurers.
Opponents claimed there would be insurance inflation and that profitability would take a hit. The study proves this to be untrue because over 40 percent of premium dollars go directly to the industry and in 2009 this totaled $1.2 billon dollars in unpaid claims. Also, property/casualty insurers have overcharged consumers over $200 billion over the past four years.
The industry claims Truth in Auto Insurance would harm Wisconsin's standings in the auto insurance industry compared with other states. Again this is false. The study highlights data showing that Wisconsin's auto premiums are the 4th lowest in the nation.
The only thing the insurance industry has proven is it puts profits over the people it is there to protect. The industry's claims were nothing more than an attempt to misguide and deceive consumers and legislators.
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The Wisconsin Association for Justice stands with consumers to promote a fair and effective justice system for every citizen, not just the privileged and wealthy.