The state of Wisconsin is slated to be the 49th state to require car insurance from its citizens. As part of its 2010 budget, the state government has approved new rules and regulations regarding auto insurance in the state.
Starting July next year, drivers in Wisconsin have to present proof of insurance when asked by law enforcers. Failure to do so can mean fines ranging from $10 to as much as $500. The state government has also increased the minimum liability amount for all insurance policies, gaining the praise of insurers across the nation. Some critics, however, say that the new rule would only force struggling citizens to shell out more of their hard-earned money.
As part of the new legislation, insurance providers will also be required to immediately provide financial assistance to car crash victims instead of contesting with other insurers. At present, analysts say that the current situation in Wisconsin requires lengthy legal debates between health and car insurers before any help actually gets to the policyholders.
According to Wisconsin Associate for Justice president Marc Thomsen, the old practice may soon be a thing of the past because of the new provision. He explains that drivers or passengers having car and health insurance would be assured of coverage for their medical expenses from day one.
Critics of the present insurance law say that it allows insurers to fight over who will pay for hospital expenses in the event of an accident. The recently approved legislation, on the other hand, requires providers to pay their clients immediately and deal with legal issues later.
This provision as well as another one increasing the minimum insurance levels for the first time since 1982, will be enacted this coming November.
Thomsen believes that the rules will give much-needed relief to accident victims who have updated insurance coverage. With the new rules, policyholders would be able to receive important medical care while providers have to settle who will reimburse who later on.
Supporters of the new legislation say that the provision gives car owners and Wisconsin’s citizens a better chance at avoiding huge hospital bills and loss of assets. They add that the first priority will always be the lives and health of the clients. Insurers will be able to sort things out later on.
Thomsen concludes by saying that the new rules will also mean that policyholders will no longer receive collection letters for their hospitalization and medical expenses.