Wisconsin drivers could be paying more money for car insurance. On November 1st, all policies will have uninsured motorist coverage. The plan is designed to protect those who get involved in an accident with a driver who does not have enough insurance to cover the damages.
Minimum coverage will jump from $50,000 to $100,000 per driver and $100,000 to $300,000 of coverage per accident. Insurance Agent John Allen says driver rates will go up. "That will affect everybody differently, depending on how much coverage each person has."
If someone has extra coverage now, it could mean about twenty bucks a year per car, but if you have less coverage "It could be 100-200 a vehicle a year, and you have multiple vehicles, it could make a big difference in their insurance costs." Allen says.
Drivers like Cameron Zasda say this increase couldn't have come at a worse time. Money is tight, and this would take a big bite out of their budget. "I'm 21 years old, and I can't get liability for less than 300 a month. I can't afford that so it's pretty messed up."
On June 1st 2010, rates for medical coverage will also go up and everyone in the state will be required to have car insurance. Allen says the requirement might not be effective. "Will these laws force people who aren't buying insurance today into buying insurance? That's yet to be seen."
Source
Monday, December 28, 2009
Tuesday, December 15, 2009
No one taking blame for higher car insurance
As insurance companies begin mailing notices to Wisconsin customers telling them that their auto premiums are likely to increase soon, state politicians are scrambling to avoid the blame.
The first changes expected to affect premiums start Nov. 1 with more coming next year when all motorists must carry liability insurance. The minimum levels of coverage are also increasing.
Terry Scheller, 47, of Nichols recently received notice that coverage for his three vehicles was increasing $231.
"I think it's awful," Scheller said. "How much more can people afford? Times are tough. Guess who's paying for it? People like me with clean driving records."
The new insurance requirements were approved by the Democratic-controlled Legislature earlier this year.
But Democrats aren't willing to accept blame for any higher premiums.
Assembly Majority Leader Tom Nelson, D-Kaukauna, said in an Oct. 7 letter to a constituent who inquired about higher premiums that "any premium increases are due to the business decisions of insurance providers rather than any action taken by the Legislature."
That's the same thing he told Scheller when he called to complain.
"I'm not buying it from Mr. Nelson," Scheller said. "I believe it's the state law. That's what I'm hearing from two different agents."
Nelson said in an interview that insurance companies were "simply using the Legislature as an excuse to raise premiums and generate more profit."
Nelson's assertion is "flat out wrong," said Andy J. Franken, president of the Wisconsin Insurance Alliance. The alliance represents insurance companies and spent more than $500,000 lobbying against the changes passed by the Legislature.
Franken said at its most basic level, the Legislature increased the amount of coverage people will have to carry and it's "simple economics" to see that will result in higher premiums.
"Everyone understands if you buy more of something, it costs more money," Franken said.
Both the insurance industry and state regulators agree that premiums will go up because of the changes. But they may not go up for all policy holders and how much they increase depends on several factors.
The state Office of the Commissioner of Insurance did not prepare, and does not intend to prepare, an analysis of what impact the changes approved by the Legislature will have on premiums.
However, premiums in general are expected to go up for consumers who purchased only the minimum limits because of the changes, said OCI spokesman Jim Guidry.
Determining how much, or what the impact would be on an individual policy holder, is difficult because some consumers purchased more than the minimum limits, Guidry said. Also, there are more than 200 insurance companies competing with one another and a variety of other factors, including driving record and past claims experience, affect premiums, he said.
"People who have higher limits that are at or higher than the new mandated amounts, will not be impacted," said Ken Muth, a spokesman for American Family Insurance, which is based in Madison. "It's going to depend on what the coverages are now and the additional coverages you'll have to take on. ... It may go up significantly for some."
American Family is sending out letters to policy holders warning them about increases.
"Every insurance company in the state will be forced to charge more as a result of this legislation," one letter sent by American Family said. American Family is the largest auto insurer in Wisconsin.
Nelson called American Family's letter blaming the Legislature for higher premiums "disingenuous and shameful."
Republicans see an opportunity to attack Democrats as policy holders getting notices of increases are looking for someone to blame.
"Obviously this is no mystery. We knew when this policy was put in it was going to raise insurance rates," said Assembly Minority Leader Rep. Jeff Fitzgerald, R-Horicon. "I think everybody's bill will increase, it's just a matter of how much."
Insurance companies, including American Family, fought against the changes but were unable to overcome support from Democratic lawmakers and Gov. Jim Doyle, a Democrat, who signed them into law.
Supporters, included trial attorneys, argued that because the current minimum coverage levels haven't increased in 29 years they don't take into account current costs.
Source
The first changes expected to affect premiums start Nov. 1 with more coming next year when all motorists must carry liability insurance. The minimum levels of coverage are also increasing.
Terry Scheller, 47, of Nichols recently received notice that coverage for his three vehicles was increasing $231.
"I think it's awful," Scheller said. "How much more can people afford? Times are tough. Guess who's paying for it? People like me with clean driving records."
The new insurance requirements were approved by the Democratic-controlled Legislature earlier this year.
But Democrats aren't willing to accept blame for any higher premiums.
Assembly Majority Leader Tom Nelson, D-Kaukauna, said in an Oct. 7 letter to a constituent who inquired about higher premiums that "any premium increases are due to the business decisions of insurance providers rather than any action taken by the Legislature."
That's the same thing he told Scheller when he called to complain.
"I'm not buying it from Mr. Nelson," Scheller said. "I believe it's the state law. That's what I'm hearing from two different agents."
Nelson said in an interview that insurance companies were "simply using the Legislature as an excuse to raise premiums and generate more profit."
Nelson's assertion is "flat out wrong," said Andy J. Franken, president of the Wisconsin Insurance Alliance. The alliance represents insurance companies and spent more than $500,000 lobbying against the changes passed by the Legislature.
Franken said at its most basic level, the Legislature increased the amount of coverage people will have to carry and it's "simple economics" to see that will result in higher premiums.
"Everyone understands if you buy more of something, it costs more money," Franken said.
Both the insurance industry and state regulators agree that premiums will go up because of the changes. But they may not go up for all policy holders and how much they increase depends on several factors.
The state Office of the Commissioner of Insurance did not prepare, and does not intend to prepare, an analysis of what impact the changes approved by the Legislature will have on premiums.
However, premiums in general are expected to go up for consumers who purchased only the minimum limits because of the changes, said OCI spokesman Jim Guidry.
Determining how much, or what the impact would be on an individual policy holder, is difficult because some consumers purchased more than the minimum limits, Guidry said. Also, there are more than 200 insurance companies competing with one another and a variety of other factors, including driving record and past claims experience, affect premiums, he said.
"People who have higher limits that are at or higher than the new mandated amounts, will not be impacted," said Ken Muth, a spokesman for American Family Insurance, which is based in Madison. "It's going to depend on what the coverages are now and the additional coverages you'll have to take on. ... It may go up significantly for some."
American Family is sending out letters to policy holders warning them about increases.
"Every insurance company in the state will be forced to charge more as a result of this legislation," one letter sent by American Family said. American Family is the largest auto insurer in Wisconsin.
Nelson called American Family's letter blaming the Legislature for higher premiums "disingenuous and shameful."
Republicans see an opportunity to attack Democrats as policy holders getting notices of increases are looking for someone to blame.
"Obviously this is no mystery. We knew when this policy was put in it was going to raise insurance rates," said Assembly Minority Leader Rep. Jeff Fitzgerald, R-Horicon. "I think everybody's bill will increase, it's just a matter of how much."
Insurance companies, including American Family, fought against the changes but were unable to overcome support from Democratic lawmakers and Gov. Jim Doyle, a Democrat, who signed them into law.
Supporters, included trial attorneys, argued that because the current minimum coverage levels haven't increased in 29 years they don't take into account current costs.
Source
Saturday, November 28, 2009
Is Your Car Insurance As Cheap As It Looks
Nobody looks forward to choosing their car insurance. Many people stay with the same company year on year to avoid endless phone calls or trawling quote comparison sites at renewal. Nowadays, however, many companies offer significant introductory and online discounts which only apply for the first year. What this means for the consumer is that shopping around makes good financial sense. But while it can be extremely tempting to go for a cheap policy, it's wise to know exactly what you're buying into.
What's Missing?
Sometimes one company will offer Fully Comprehensive coverage for the same rates as another's Third Party insurance. This should ring alarm bells, it's possible it's cheaper for a reason.
A car insurance policy booklet is divided into sections. The level of cover you have purchased will include some or all of these. Third Party Only is the legal minimum and included in all policies. Mandatory since 1930, it covers you for damage to another's person or property. Then Fire and Theft is added to that, followed by damage to your own car - Fully Comprehensive includes all three.
There are things we automatically assume to be part of a Comprehensive policy - European coverage, windscreen coverage, a courtesy car, coverage for driving other cars - but not necessarily so. Policies may have been stripped to the bare bones in order to appear cheap. The missing features may then be offered as chargeable extras, so take care.
If you are considering driving abroad, check what level of coverage you will actually have while out of the country. It might be lower than your normal level of coverage and you may only be allowed a limited time abroad. To increase the time or level of coverage would then be chargeable.
Auto Insurance Excesses
So you have a cheap policy that seems to give all the coveage you need. The next thing to check are the excesses. These are what you pay in the event of a claim, such as deductibles. Sometimes they can be high in order to keep the premiums down and there are compulsory excesses on top for categories of driver who the insurer perceives to be a higher risk. This may include young drivers, foreign drivers or those with points on their license - check which apply to you.
Extra Charges
Whether we want to believe it or not, it does cost an insurer to set up or cancel a policy, and to process your claims. As businesses, they will attempt to recoup the costs from the customer, probably in the form of cancellation fees or charges for amending your policy. If the premium is very low these charges may be higher to compensate. Some cancellation fees are even levied within the mandatory 14 day cooling off period, so be aware of what you're letting yourself in for.
Sadly the process of renewing your insurance remains a long, drawn out process and even higher premiums may not include everything so it's worth devising a checklist to use when you shop. Go in armed with your own questions and reduce your chances of unpleasant surprises later in the year.
Source
What's Missing?
Sometimes one company will offer Fully Comprehensive coverage for the same rates as another's Third Party insurance. This should ring alarm bells, it's possible it's cheaper for a reason.
A car insurance policy booklet is divided into sections. The level of cover you have purchased will include some or all of these. Third Party Only is the legal minimum and included in all policies. Mandatory since 1930, it covers you for damage to another's person or property. Then Fire and Theft is added to that, followed by damage to your own car - Fully Comprehensive includes all three.
There are things we automatically assume to be part of a Comprehensive policy - European coverage, windscreen coverage, a courtesy car, coverage for driving other cars - but not necessarily so. Policies may have been stripped to the bare bones in order to appear cheap. The missing features may then be offered as chargeable extras, so take care.
If you are considering driving abroad, check what level of coverage you will actually have while out of the country. It might be lower than your normal level of coverage and you may only be allowed a limited time abroad. To increase the time or level of coverage would then be chargeable.
Auto Insurance Excesses
So you have a cheap policy that seems to give all the coveage you need. The next thing to check are the excesses. These are what you pay in the event of a claim, such as deductibles. Sometimes they can be high in order to keep the premiums down and there are compulsory excesses on top for categories of driver who the insurer perceives to be a higher risk. This may include young drivers, foreign drivers or those with points on their license - check which apply to you.
Extra Charges
Whether we want to believe it or not, it does cost an insurer to set up or cancel a policy, and to process your claims. As businesses, they will attempt to recoup the costs from the customer, probably in the form of cancellation fees or charges for amending your policy. If the premium is very low these charges may be higher to compensate. Some cancellation fees are even levied within the mandatory 14 day cooling off period, so be aware of what you're letting yourself in for.
Sadly the process of renewing your insurance remains a long, drawn out process and even higher premiums may not include everything so it's worth devising a checklist to use when you shop. Go in armed with your own questions and reduce your chances of unpleasant surprises later in the year.
Source
Sunday, November 15, 2009
Claudia Buck: Shop, but don't drop, car insurance policies
The recession has run a few drivers off the road, at least when it comes to keeping their auto insurance coverage.
Pinched by pay cuts, job losses and other financial hardships, consumers are downshifting: cutting back on coverage, shopping for more competitive rates or, in some cases, letting their insurance lapse to save money.
Nationally, the number of motorists without auto insurance is expected to increase from 13.8 percent in 2007 to 16.1 percent in 2010, largely due to the sputtering economy, according to a study earlier this year by the Pennsylvania-based Insurance Research Council.
California and Arizona – each with an estimated 18 percent of uninsured motorists – tied for seventh place among all states, according to the IRC's January study. And that was as of 2007, before the recession caused widespread unemployment and upheaval.
The trend has naturally troubled the insurance industry. Earlier this year, state Insurance Commissioner Steve Poizner traveled the state, urging Californians to stay insured and seek out low-cost insurance.
"In today's tough economy, many drivers are looking for ways to cut their expenses and some are undoubtedly considering eliminating auto insurance," Poizner said this week in an e-mail, "but driving without insurance is illegal and puts all travelers at risk."
There are money-saving routes on car insurance that stop far short of dropping coverage altogether. Here's a look at where you can start.
Source
Pinched by pay cuts, job losses and other financial hardships, consumers are downshifting: cutting back on coverage, shopping for more competitive rates or, in some cases, letting their insurance lapse to save money.
Nationally, the number of motorists without auto insurance is expected to increase from 13.8 percent in 2007 to 16.1 percent in 2010, largely due to the sputtering economy, according to a study earlier this year by the Pennsylvania-based Insurance Research Council.
California and Arizona – each with an estimated 18 percent of uninsured motorists – tied for seventh place among all states, according to the IRC's January study. And that was as of 2007, before the recession caused widespread unemployment and upheaval.
The trend has naturally troubled the insurance industry. Earlier this year, state Insurance Commissioner Steve Poizner traveled the state, urging Californians to stay insured and seek out low-cost insurance.
"In today's tough economy, many drivers are looking for ways to cut their expenses and some are undoubtedly considering eliminating auto insurance," Poizner said this week in an e-mail, "but driving without insurance is illegal and puts all travelers at risk."
There are money-saving routes on car insurance that stop far short of dropping coverage altogether. Here's a look at where you can start.
Source
Wednesday, October 28, 2009
Simple Steps to Cheap Automobile Insurance in a Bad Economy
As more people drop their automobile insurance coverage due to the lagging economy, insurance companies increase their rates to increase their profit margins. This means higher rates for those who continue to pay their vehicle insurance rates and greater risk of being in an accident with an uninsured driver. However, there are ways drivers can find cheap automobile insurance and reduce their risk. CarWizard.com offers way on how families can find cheap automobile insurance in a tough economy.
As rates increase, drivers are often left with three options; renew their existing automobile insurance at a higher rate, cut down on the amount of coverage on the policy to keep the rate lower, or shop around for cheap automobile insurance.
Not only is it dangerous to drive without vehicle insurance, but it is also against the law in many states. With it getting harder for families to make ends meet, paying a higher rate is not always feasible. However, dropping coverage in certain areas can mean a bigger hit in the long run. If a person is involved in an accident and their insurance does not cover all that is necessary in damages, the driver can be sued and lose personal assets.
The best option is to shop around for cheap automobile insurance rates. It is the quickest and easiest way to save money on car insurance. By simply going online to a free insurance quote site, drivers can enter basic information to request free automobile insurance quotes. Typically, up to five local insurance agents will contact the insurance shopper with free quotes. The agents will know they are competing with other local insurance agents, so they will offer the most complete coverage at the absolute lowest possible rate in order to win the new client.
All the insurance shopper needs to do is compare the plans and prices that are offered and choose the one with the best coverage at the lowest rate. Policies should be examined closely as the lowest price doesn’t always mean the best deal. If a driver does not have adequate coverage and is involved in an accident, they could pay out of pocket for damages.
Shopping around to get the lowest rate and the most complete coverage is the quickest and easiest way to save on automobile insurance. There are other ways drivers can continue to cut costs once they’ve chosen a plan. First, ask the agent about what discounts they could qualify for. These could include good-driver discounts, good-students discounts, discounts for certain professions, and more.
Drivers can cut the amount of time spent behind the wheel to save on their policy. By car pooling, walking and taking public transportation more often, drivers can save by reducing the amount of miles they are driving. In addition to the amount of driving, the type of car being driven is also important. Smaller, cheaper and safer cars cost less to insure, and cost less to fill up the gas tank.
With so many drivers dropping their car insurance coverage, a great way for insured drivers to protect themselves is to include uninsured motorist coverage to their policy. This is typically very inexpensive but can save a lot of time and money in the long run if an accident with an uninsured motorist occurs.
Source
As rates increase, drivers are often left with three options; renew their existing automobile insurance at a higher rate, cut down on the amount of coverage on the policy to keep the rate lower, or shop around for cheap automobile insurance.
Not only is it dangerous to drive without vehicle insurance, but it is also against the law in many states. With it getting harder for families to make ends meet, paying a higher rate is not always feasible. However, dropping coverage in certain areas can mean a bigger hit in the long run. If a person is involved in an accident and their insurance does not cover all that is necessary in damages, the driver can be sued and lose personal assets.
The best option is to shop around for cheap automobile insurance rates. It is the quickest and easiest way to save money on car insurance. By simply going online to a free insurance quote site, drivers can enter basic information to request free automobile insurance quotes. Typically, up to five local insurance agents will contact the insurance shopper with free quotes. The agents will know they are competing with other local insurance agents, so they will offer the most complete coverage at the absolute lowest possible rate in order to win the new client.
All the insurance shopper needs to do is compare the plans and prices that are offered and choose the one with the best coverage at the lowest rate. Policies should be examined closely as the lowest price doesn’t always mean the best deal. If a driver does not have adequate coverage and is involved in an accident, they could pay out of pocket for damages.
Shopping around to get the lowest rate and the most complete coverage is the quickest and easiest way to save on automobile insurance. There are other ways drivers can continue to cut costs once they’ve chosen a plan. First, ask the agent about what discounts they could qualify for. These could include good-driver discounts, good-students discounts, discounts for certain professions, and more.
Drivers can cut the amount of time spent behind the wheel to save on their policy. By car pooling, walking and taking public transportation more often, drivers can save by reducing the amount of miles they are driving. In addition to the amount of driving, the type of car being driven is also important. Smaller, cheaper and safer cars cost less to insure, and cost less to fill up the gas tank.
With so many drivers dropping their car insurance coverage, a great way for insured drivers to protect themselves is to include uninsured motorist coverage to their policy. This is typically very inexpensive but can save a lot of time and money in the long run if an accident with an uninsured motorist occurs.
Source
Thursday, October 15, 2009
Auto Insurance: Additional Auto Insurance Coverage
When shopping for auto insurance rates you should also consider additional auto insurance coverage beyond the minimums set by the state you live in. Most states require you to have bodily liability and property liability coverage.
The minimum bodily coverage will probably be around $15,000 for death or injury of any one person, any one accident and $30,000 for all persons in any one accident. The minimum amount of property liability coverage will probably be around $5,000.
Looking for Auto Insurance Rates?
MonitorBankRates.com has a comparison tool you can use to start your search for the best auto insurance rates from insurance companies in your zip code. Compare auto insurance Rates Here
Auto Insurance
Getting the bare minimum amount of coverage isn’t recommended. You will be liable for any property damage and medical expenses beyond the auto insurance coverage you have if the accident is your fault. You can and probably will be sued if you don’t have enough insurance coverage.
That being said, we definitely recommend getting the most coverage you can afford. Yes, your auto insurance premiums will be higher but at least you will be able to sleep at night knowing you are adequately insured.
You should also consider additional auto insurance coverage. Insurance companies must also offer the following types of coverage with your automobile insurance policy.
Uninsured and Underinsured Coverage
Uninsured and Underinsured motorist coverage is a must. This type of car insurance provides liability insurance when the other driver does not have the required minimum liability coverage. This will also cover you if the other driver’s auto insurance coverage is insufficient to cover the injuries you sustained in an accident and if the other driver doesn’t have insurance.
Some auto insurance companies will also offer the following optional coverages. Payments for Medical, provides for the payment of medical and similar expenses without regard for liability.
Collision Insurance and Comprehensive Insurance
Physical Damage, collision and comprehensive. Collision covers damage to your auto caused by collision with another vehicle or with any other object, regardless of fault.
Collision car insurance also covers you when a vehicle overturns, but does not cover bodily injury or property damage liability. Comprehensive coverage covers damage to your car caused by reason other than collision, such as fire, theft, windstorm, flood, vandalism, etc.
Auto Insurance Riders
Auto insurance riders for after-market additions on your car like special tires, rims and sound systems. Coverage for towing and rental reimbursement especially if you only have one vehicle.
Source
The minimum bodily coverage will probably be around $15,000 for death or injury of any one person, any one accident and $30,000 for all persons in any one accident. The minimum amount of property liability coverage will probably be around $5,000.
Looking for Auto Insurance Rates?
MonitorBankRates.com has a comparison tool you can use to start your search for the best auto insurance rates from insurance companies in your zip code. Compare auto insurance Rates Here
Auto Insurance
Getting the bare minimum amount of coverage isn’t recommended. You will be liable for any property damage and medical expenses beyond the auto insurance coverage you have if the accident is your fault. You can and probably will be sued if you don’t have enough insurance coverage.
That being said, we definitely recommend getting the most coverage you can afford. Yes, your auto insurance premiums will be higher but at least you will be able to sleep at night knowing you are adequately insured.
You should also consider additional auto insurance coverage. Insurance companies must also offer the following types of coverage with your automobile insurance policy.
Uninsured and Underinsured Coverage
Uninsured and Underinsured motorist coverage is a must. This type of car insurance provides liability insurance when the other driver does not have the required minimum liability coverage. This will also cover you if the other driver’s auto insurance coverage is insufficient to cover the injuries you sustained in an accident and if the other driver doesn’t have insurance.
Some auto insurance companies will also offer the following optional coverages. Payments for Medical, provides for the payment of medical and similar expenses without regard for liability.
Collision Insurance and Comprehensive Insurance
Physical Damage, collision and comprehensive. Collision covers damage to your auto caused by collision with another vehicle or with any other object, regardless of fault.
Collision car insurance also covers you when a vehicle overturns, but does not cover bodily injury or property damage liability. Comprehensive coverage covers damage to your car caused by reason other than collision, such as fire, theft, windstorm, flood, vandalism, etc.
Auto Insurance Riders
Auto insurance riders for after-market additions on your car like special tires, rims and sound systems. Coverage for towing and rental reimbursement especially if you only have one vehicle.
Source
Monday, September 28, 2009
Save on your car insurance by reducing legal fees
After recent news that car insurance premiums are rising at the fastest rate for a decade, it’s unsurprising that motorists are shopping around to save themselves some cash. There is some good news on the horizon though, as it’s been revealed that insurance providers could reduce the cost of said premiums by eliminating unnecessary legal fees for personal injury claims - one of the key factors behind this year’s car insurance increase.
The Association of British Insurers has indicated that insurance providers are finding ways to cut costs and, therefore, provide cheaper premiums for their customers.
One of the key ways that this could be achieved is to ditch the disproportionate legal costs on personal injury claims which have become a real issue for many insurance companies. For every £1 that insurance providers hand over when a motorist is injured in a crash, another 40p is lost to legal fees.
Malcolm Tarling, spokesman for the ABI, believes that ‘the vast majority of non-contentious personal injury claims can be settled just as quickly without the need for lawyers to be involved’. He emphasised that the planned cuts would not result in smaller payouts.
The Association of British Insurers has indicated that insurance providers are finding ways to cut costs and, therefore, provide cheaper premiums for their customers.
One of the key ways that this could be achieved is to ditch the disproportionate legal costs on personal injury claims which have become a real issue for many insurance companies. For every £1 that insurance providers hand over when a motorist is injured in a crash, another 40p is lost to legal fees.
Malcolm Tarling, spokesman for the ABI, believes that ‘the vast majority of non-contentious personal injury claims can be settled just as quickly without the need for lawyers to be involved’. He emphasised that the planned cuts would not result in smaller payouts.
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