Beginning tomorrow, June 1st, the state of Wisconsin will require that you have liability insurance on your autos.
I think it is about time that Wisconsin got with the program. Others think that it is wrong that the state mandate you have insurance.
Technically, the state doesn't require insurance but they do require that you show fiscal responsibility. In order to comply with Wisconsin financial responsibility laws, all drivers must show that they have the ability to pay for damages if he or she is found to be at fault in an accident. In lieu of insurance, driver’s can place a cash deposit of $60,000 with the Wisconsin DOT.
I know a person who I will call Z. Z thinks that it is wrong to have the state require that they carry auto insurance. Z says that they can't afford the monthly premiums. So if Z gets into a minor fender bender withe me, Z won't fix their car because it is a piece of shit and what is another dent or two. I, on the other hand, will call my insurance agent, file a claim and get my car fixed. My insurance will go after Z to recoup their loses but because Z has no money, it won't go very far. Maybe a judgment will be filed. But getting the money back is almost a lost cause. Now when my premium comes due the following year, I will see an increase in my rates to cover the losses it incurred in my fender bender with Z.
Scenario 2 is that Z gets into a major accident where both Z and I have serious medical issues. Once again, since Z has no insurance, either auto or medical, my insurance will pay for my auto and medical bills. Once again, my premiums will go up as a result. Z, since they have no insurance, will get public aid insurance (I forget what it is called) any left over money that needs to be paid will be ignored.
One good thing with this law is that if you purchase insurance and let it lapse, the insurance company will notify the state. You will have a certain amount of time to provide proof of insurance. If you don't the state will revoke or suspend your license or registration.
I hope that the insurance laws work as intended. Only time will tell.
1 comment:
I don't know how Z gets out of paying. Two cases: My son was hit by an uninsured drunk driver. Our insurance paid all bills and then sued the driver. He could not get his license back until he proved financial responsiblilty. Our rates did not go up. In a case of a drunken driver the victim is at zero fault, therefore by law your rates cannot be raised. All other accidents are considered 50/50. You are considered partially at fault for being on the road and depending upon your insurance your rates may go up.
Case #2- my sister was in an accident and not insured. By her choice she had money deducted from her paychecks to pay back the insurance company.
I am in total agreement with the law and would never even think of driving without insurance but as usual people will get out of it and continue to do as they please.
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