Car Insurance Companies to Drive up Rates in Wisconsin
A new state budget will put new regulations into effect in Wisconsin that will unfortunately increase the amount of required spending, starting fall of this year. Wisconsin and New Hampshire were the only states left in the United States that did not require drivers to purchase liability coverage from car insurance companies. Wisconsin will change that by July 2010, as their amended state law will now require motorists to purchase auto insurance. Automobile-owners can be charged $10- $500 for not providing insurance if pulled over. However, that is the only time they will be prompted to prove that they hold insurance: when pulled over for any traffic violation. As such, most who own vehicles may not buy insurance as a result of the new law and may never be fined for it.
Another byproduct that car insurance companies hope will work to their advantage, but may work against all involved, is the increase of the bodily insurance and property damage coverage rates. After more than 25 years of maintaining the same rate, in November, the minimum policy will shoot up to $50,000 per person injured and up to $100,000 for two or more persons injured. According to a study by American Advantage Insurance Group, car insurance companies in Milwaukee may charge a college graduate anywhere from $1,000 to $2,000 every year as a result of the new laws. This new policy most assuredly works against drivers who couldn’t afford insurance in the first place, and as unemployment rates are at 8.7%, this could possibly be the worst time to increase auto insurance rates.
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