State laws pertaining to car insurance have changed particularly in Appleton, Wisconsin, thanks to the law that was signed by Governor Doyle, which takes effect November this year. The state of Wisconsin does not really require its drivers to take out car insurance policies, which leads to a lot of trouble especially during cases where the driver at fault is not insured or is under-insured. A related change is also the requirement of boosting the coverage levels to a fixed minimum.
Residents of Wisconsin are showing mixed emotions towards these changes. Todd Talady of Appleton says that he is pleased to hear about these changes. He further says that car insurance premiums are always high but living in a place where people can drive their cars without insurance would just put everyone else on the road at risk. This makes the requirement a sound decision for Talady.
However, this mandated change does bring higher premiums for most drivers, if not all. This is especially true for drivers who own policies that cover two or more vehicles. What would then take place is insurance coverage stacking. The coverage limit for each of the cars covered by multiple-vehicle insurance packages would actually double or even triple. This literally means that if you have a policy that is made out to give you $1 million worth of protection for each of your 3 vehicles, you just might incur roughly $3 million in terms of potential costs for each of the 3 cars covered.
Tom Adelmann, Secura Insurance Cos.’ Underwriting manager, says that the additional coverage brings additional expenses for policyholders who take out multiple-car policies. Not only that, because policyholders whose current packages provide lower level protection than the latest minimums allow would still have to deal with higher premium rates. No one is exempted from having to pay higher premiums.
Adelmann adds that because of this increase in premium rates, drivers would find themselves with a limited range of coverage options. Drivers ho cannot afford higher coverage are the ones who will suffer the most. Ironically, these new car insurance requirements may lead to having more uninsured or under-insured drivers on the road.
The proprietor of the Thiel Insurance Group, Body Thiel, shares that this new requirement could likely backfire. With the high rate increases, the people who cannot afford getting car insurance just might end up having to go without it.
Mark Thomsen of the Wisconsin Association for Justice argues that the higher coverage limit will ultimately help drivers. Still, Wisconsin drivers are starting to feel the brunt of the burden and are dreading the time when car insurance becomes mandatory, come June 2010.
