Michigan motorists gear up for hike in car insurance read more
No One Takes Blame For Rise In Wisconsin Car Insurance
November 6th, 2009
The car insurance rate for the average motorist in Wisconsin is on the rise. In fact, the state's drivers are now being saddled with insurance costs higher than they've ever been. And, according to a recent story by the Associated Press, no one is rushing to take the blame. The story stated that the premium increases for car insurance coverage were expected to take effect Nov. 1. More motorists will have to pay higher car insurance rates next year when all state drivers are required to carry liability insurance. At the same time, the minimum levels of car insurance coverage are also rising. It all adds up to a financial burden for Wisconsin drivers.
This is unfortunate, as most drivers in Wisconsin and the rest of the country, are struggling to pay their bills as it is. The weak economy and the still soaring national unemployment rate are making it difficult for consumers to handle even small increases in their monthly expenses. It's uncertain how much more the average Wisconsin motorist will pay for their car insurance, but the story highlights one state driver who will have to pay $231 more to provide car insurance for his three vehicles. Fee increases like this might only add to the already high number of uninsured motorists currently driving on the country's roads.
According to the Insurance Research Council, 13.8 percent of motorists across the nation were driving without car insurance in 2008. That figure might climb to higher than 16 percent by 2010 as more drivers struggle to justify any expenses. If the figure does hit that 16-percent rate, that would mark the highest number of uninsured motorists since the Insurance Research Council began tracking this figure 20 years ago. Unfortunately, when car insurance rates rise, as they are in Wisconsin and several other states, a growing number of drivers take the risk that they won't get into an accident or get pulled over for speeding in order to save money.
In Wisconsin, politicians and insurance companies are busy fighting over who is to blame for the extra cost of car insurance coverage. Republicans and Democrats in the state are even blaming each other for the rate increases. American Family Insurance angered politicians when it sent a letter to its policyholders warning them of the increases. The letter pointed the blame squarely at politicians. The letter stated that “every insurance company in the state will be forced to charge more as a result of this legislation.” Wisconsin Assembly Majority Leader Tom Nelson was quoted in the news story as saying that car insurance rate increases are the fault of insurance industry decisions.
Whoever is to blame, the raise in car insurance rates is unfortunate.
