Smart Auto Insurance Blog

Wisconsin is now requiring all drivers to carry auto insurance and with increased coverage, it could mean increased premiums.  According to the article “Auto Insurance Changes for June” by Kristin Crowley on fox11online.com the law that was meant to increase driver safety may backfire.

As coverages for Wisconsin auto insurance increases so will premium costs, which may cause more people to go without auto insurance.  This goes against the whole reason for the new law in the first place.  Wisconsin Insurance Alliance President Andy Franken states that about 14% of Wisconsin drivers are currently uninsured.

It is still to be determined how premiums will be affected by the new law, but one thing is for sure.  If you choose to drive without insurance it’s going to cost you.  The Wisconsin Department of Motor Vehicles states that driving without insurance will cost up to $500.  Even more expensive is fraudulent insurance issues which will be fines up to $5,000.

According to the article “AG Finds Herself on 2 Sides of a Dispute” by Bruce Mohl on boston.com, the Massachusetts Attorney General Martha Coakley is defending something she criticized not too long ago.  She is the state’s top lawyer and is defending Governor Patrick’s Administration against a lawsuit that’s saying some of the state’s auto insurance rules unfairly favor national companies coming to the MA market, such as Progressive Auto Insurance. There has also been some criticism of the way Massachusetts auto insurance quotes are determined.

The interesting thing is that this same attorney general has been known to criticize the same regulations.  She has been a representative of consumers on auto insurance debates and released a report just before the holidays that stated her belief that the managed competition auto insurance system is not saving MA drivers money.  She also accused Governor Patrick of playing favorites when determining auto insurance rules.

She basically argued in court that state officials are acting reasonably in making the auto insurance rules, but just weeks ago accuses them of playing favorites. It will be interesting to see how this plays out and if her two-sided judgement affects her defense.

In a Boston Herald editorial, it’s said that auto body shops in Massachusetts are petitioning the state legislature for higher pay from insurers. They are asking that the state require a price floor; body shops would have to charge a minimum labor rate, and Massachusetts auto insurance providers would be required to pay no less than that minimum hourly rate for covered repairs.

The body shops claim that such legislation is necessary in order to keep up with inflation of their actual costs, and point out that their average rate is already under the national going rate for auto repairs (although insurance companies snap back that Mass. body shops also take more hours to fix a car than the national average, evening things out). Such a law would be likely to increase auto insurance premiums for consumers.