Wisconsin Drivers See Auto Insurance Rates Rise

Times are tight given the economic state of the world. Not helping things is the fact Wisconsin drivers are going to see their auto insurance rates rise this year.

We’re from the government and we’re here to the help. Having heard this, most people would run the other way screaming like they had just seen the monster from the movie “Aliens.” Well, drivers in Wisconsin certain may be feeling this way thanks to their friendly state government which has stuck the knife in and twisted it when it comes to auto insurance premiums.

So, what’s the big deal? The state passed legislation that went into effect in November 2009 that requires a four fold increase in uninsured motorist insurance in every single policy. This insurance pays for damages when one of the parties causing the accident doesn’t have insurance. You have always been required to carry it, but the limits were $25,000/$50,000. The new law bumps these to a staggering $100,000/$300,000. Ah, but it gets better.

What about regular old liability car insurance? Well, the coverage minimums on those are going up to. Traditionally, a Wisconsin driver has been required to carry $25,000 to cover the injury or death of one person, $50,000 to cover two or more people and $10,000 for property damage. These figures are being bumped up to a minimum of $50,000/$100,000/$25,000 in the new legislation.

More mandatory coverage means one thing for drivers in Wisconsin. It means premiums are going up just when most people are trying to survive in these rather brutal economic times. How much of an increase? Well, it depends on your current policy and driving record, but insurance companies are announcing they will be sending out letters advising drivers of the changes. They are only required to do this by law when a premium increase of 25 percent or more is going to occur.

The truth of the matter is nobody knows how big of an increase the new insurance mandates will cause. What we do know is they will go up and that is bad news for a lot of people in this day and age.

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