The auto insurance industry of Wisconsin is going to see massive changes after state budget was passed in last June. The changes will come into effect on 1st November, when limited liability coverage requirements will increase for the Wisconsin drivers. State legislators who voted for the change claim that victims of accidents would be helped by these changes. Over 80% of Wisconsin drivers already fulfill the new minimum limit requirement. The lawmakers say the level of $25,000 was not popular among the drivers due to substantial increase in health care costs.
The opposition, however, says the insurance costs will increase dramatically due to these changes. Insurance budget for many buyers will increase by about $500 due to these measures. There are many drivers who have bought insurance policies for more than one vehicle; the changes will affect them as well.
In a nutshell, insurance buyers will have to be ready to pay for a higher insurance premium next time their coverage is being renewed. All these changes were passed along with the budget, though they had nothing to do with balancing the state finances.
Even those vehicle owners, who don’t want the added coverage, will have to still pay higher insurance rates. According to some estimates, the auto insurance rates due to these changes would go up by about 33%. Since the insurance cost is increasing, uninsured drivers will increase substantially on the state roads which are bad for all drivers on the road. Although the new law makes it mandatory for everyone to buy auto insurance, there will be people who just won’t be able to afford these rates. Even those who already have the insurance may drop it at the time of renewal. If a family holds more than one vehicle, they are being forced to pay for more than needed.
