As of today, auto insurance is mandatory in the state of Wisconsin.
Going forward, drivers in the state will be required to carry liability coverage and proof of insurance.
The minimum liability limits in Wisconsin are $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $15,000 for property damage.
The state’s minimum liability limits, which were raised in January, are nearly the highest in the nation, behind just Maine and Alaska.
Those caught driving without proof of insurance may face a $10 fine, while those caught without insurance can be fined up to $500.
Wisconsin had been one of only two states that did not require auto insurance coverage, the other being New Hampshire.
“This upcoming change in the law means that people who are currently uninsured need to act now to get the required auto liability coverage in place,” said Wisconsin Insurance Commissioner Sean Dilweg, in a press release.
“Fortunately Wisconsin has a very competitive auto insurance marketplace with over 200 insurance companies doing business here,” added Dilweg. “Someone looking for coverage should be able to find the insurance they need and get covered almost immediately.”
If you’re unable to obtain auto insurance via the private market (such as through a direct insurer or independent agent), you can get coverage via the Wisconsin Auto Insurance Plan (WAIP).
The big question is whether the new law will actually lead to better auto insurance coverage in the state – roughly 15% of drivers in Wisconsin are uninsured.
There’s a good chance that those currently driving without insurance will continue to drive uninsured, all the more reason to carry uninsured motorist coverage.
(photo: diomakr)
This post was written on June 1, 2010
It would be great if the sticker price were the only consideration when making a decision to buy that new car you’ve been eyeballing.
But with the economy still barely sputtering along and unemployment holding steady, or increasing, depending on who you talk to, most of us need to consider the overall cost of car ownership when deciding which ride to take home with us.
One of the main drawbacks to car ownership is the cost to insure our vehicles.
While the liability portion of auto insurance is determined mostly by our choice of limits, age, sex, and driving record, the physical damage portion of the policy is mostly determined by the expected cost to repair damage to the vehicle.
Simply put, the more your car is worth, the more expensive it is to fix if damaged and the more expensive it is to insure. Period.
Remember, if you lease or have a loan on a vehicle, your lender, or loss payee, will require you to have full coverage (liability and physical damage) in order to protect their financial interest.
Tip: You may want to consider purchasing gap coverage on a newer vehicle if you owe more than the car is currently worth.
So let’s take a look at the top 10 cars cheapest cars to own (with car insurance included), based on a recent survey from Car and Driver:
10. Hyundai Elantra
Insurance: $3,527
Total ownership: $21,586
9. Kia Forte Sedan
Insurance: $3835
Total ownership: $21,533
8. Suzuki SX4 Sedan
Insurance: $3,563
Total ownership: $21,487
7. Kia Soul
Insurance: $3,760
Total Ownership: $21,063
6. Toyota Yaris Three-Door Hatchback
Insurance: $3,597
Total ownership: $19,847
5. Kia Rio Sedan
Insurance: $4,000
Total ownership: $19,378
4. Chevy Aveo Sedan
Insurance: $3,536
Total ownership: $19,309
3. Smart Fortwo Coupe
Insurance: $3,279
Total ownership: $18,487
2. Hyundai Accent three-Door Hatchback
Insurance: $4,351
Total ownership: $18,029
1. Nissan Versa 1.6 Base
Insurance: $3602
Total ownership: $17,506
Car and Driver rolled in the cost of car insurance over three years assuming the driver was a 28-year-old single male with no tickets, living in the same area as its Ann Arbor offices.
You may notice the insurance costs do not necessarily correlate directly with the cost of the vehicle or the total ownership cost. Some vehicles may be more expensive to repair or may be inherently more dangerous to drive.
Get insurance quotes online or contact your local independent insurance agent to ensure you get the coverage you need at lowest possible premium.
Read more: How can I lower my car insurance rate?
(photo: paulhoule)
This post was written on May 26, 2010
The “Chinese drywall” problem is just starting to snowball. According to Independent Agent Magazine, “the property loss from Chinese drywall could exceed every U.S. hurricane except Katrina (2005) and Andrew (1992).”
How much is that? The expected property loss settlements could top $20 to $30 billion dollars.
An estimated 500 million pounds of tainted drywall came into the United States from 2004 to 2006 — that is about 7.1 million 4’x8’ sheets of drywall and it may be in more than 100,000 homes.
While the number of homes affected is greatest in Florida, Louisiana, Mississippi, Alabama and Virginia, the drywall supplies have affected all but 12 states.
The image below shows the impact of Chinese drywall will be widespread based on complaints received as of May 12, 2010 at the Consumer Products Safety Commission.
We’ve only seen the tip of the iceberg on this ordeal with regard to claims and claim settlement. To date, only three home builders have settled minor lawsuits with the Chinese drywall manufacturing companies. Additionally, individual homeowners are currently consulting attorneys to determine their possible courses of action in recouping money spent on the defective drywall.
There are really two separate issues here from an insurance standpoint. At the moment, property losses are the top concern. That is; tearing out and replacing the tainted drywall, technically described as a pollutant. We have not even scratched the surface for potential health-related claims associated with exposure to the “polluted” product.
Does My Homeowner’s Insurance Cover the Cost to Remove and Replace the Drywall?
Unfortunately, the likely answer is “NO.” Almost every homeowner’s insurance policy contains a “pollution exclusion.” Odds are, you haven’t heard of the exclusion, as most insured are typically concerned only with the overall premium of a policy versus the exact coverage afforded (or not).
This basically means there is no coverage available for any pollution related claims. Of course, this will likely be argued in courts for some time.
What Options Do I Have?
If the pollution exclusion defense holds up in courts for your insurance company, seeking damages via a lawsuit from your home builder, the contractor who performed the installation in your home or business, or the company who sold you the drywall (if you installed it yourself) may be your only option.
All parties referenced above should have their own commercial general liability insurance (CGL), which covers products and completed operations, or in this case, the actual drywall and its installation.
But the odds of getting money out of these companies may be slim. The aforementioned “pollution exclusion” exists on the CGL policy as well. While insurance companies do offer pollution liability, the odds your local contractor or hardware store has this coverage is about the same as you having it.
This doesn’t mean you can’t recoup damages from these organizations, it just means you can’t get money from their insurance companies. Unfortunately, many of these companies may simply file bankruptcy to avoid paying for these damages out of their own pockets.
(top photo: iluvrhinestones)
This post was written on May 26, 2010
A widely publicized 2007 car accident involving Hulk Hogan’s son, Nick Hogan, left his passenger in a coma.
As a result, “The Hulkster,” whose real name is Terry Bollea, had to pay out an undisclosed amount of money in damages to the family of the injured passenger.
You may recall that Nick was not yet an adult, which made elder Hogan technically responsible for his son’s actions.
In the event of an at-fault accident, bodily injury caused to another individual is covered under your limits of liability.
Liability limits can be expressed as split limits or as a combined single limit. The limits dictate the maximum amount of money your insurance company will pay for damages awarded in any one covered accident.
The at-fault individual (or the parent or legal guardian in the case of a minor) is responsible for paying any awarded damages above the policy limits.
As it turns out, similar to his son’s apparent lack of taking responsibility for the accident, Hogan is looking to point the finger in another direction to recoup the money he was ordered to pay to the family of the injured passenger.
Why is Hogan Suing His Insurance Agent?
Insurance agents must carry errors and omissions insurance, a type of professional liability insurance similar to malpractice insurance for doctors.
An insurance agent technically has a duty to evaluate all potential insurance needs for their clients and make recommendations for coverage.
And often times, an insured must accept or reject coverage as part of their application.
This is a major reason why agents should make it a habit to keep written records of their client’s refusal to purchase the “recommended coverage. “
According to the Independent Insurance Agents of Texas’ Personal Lines Report, Hogan sued his insurance agent for failure to offer an umbrella insurance policy.
An umbrella policy has extremely high liability limits ($1,000,000 and up) and protects an insured from liability judgments in excess of underlying liability insurance policies, in this case his auto liability policy.
It is not necessary for every individual to have an umbrella policy, though high net-worth individuals should almost always have one in place (how much car insurance do I need).
The same report said Hogan sued his attorney for “failing to sufficiently protect his personal interests,” but that case was dismissed.
So it looks like this is a last ditch effort by Hogan to push responsibility onto someone else and protect his remaining assets.
The lesson here is that insurance agents and their insured need to take as much time as necessary to share information and assess all potential exposure to risk.
Many insurance agents are dissatisfied with their insured’s lack of concern or effort when it comes to discussing their wants, needs and exposures…that is, until a claim is started.
So take the time to fully understand all of your insurance needs prior to signing on the dotted line.
It is recommended that you obtain insurance quotes online or speak to a local independent agent to get the proper insurance coverage you need at the right price.
This post was written on May 24, 2010
If you’re actively shopping for car insurance, you may be curious what others are paying for their coverage.
While it’s hard to get an apples to apples comparison given all the options and variables, such as driver history, type of car, applied discounts, and so on, it can still serve as a barometer to what you might pay (how are car insurance rates determined).
The table below displays the “average cost of car insurance by state,” broken down by liability coverage, collision coverage, and comprehensive coverage.
Generally, only liability insurance is required in each state, so this breakdown will give you a better overall picture of what the associated costs might be with some or all options included.
The data is based on 2007 auto insurance premiums, the latest available, as provided by the National Association of Insurance Commissioners and reported by the Insurance Information Institute (III).
Per the III, car insurance is more expensive in states where the economy is healthy, as it leads to the purchase of newer cars and higher associated coverage to protect those vehicles.
States with large urban areas and high traffic density also increase car insurance rates, as do higher theft rates and minimum liability limits.
Using the numbers below, you can see how your car insurance rate stacks up to the average in your state, and the average in the nation, which is $795.
If you’re paying a higher insurance premium than the average driver, be sure to ask your auto insurance company or independent agent to explain why.
Read more: How can I lower my car insurance rate?
This post was written on May 21, 2010
