Wisconsin Residents Forced to Buy Car Insurance

By: Jaime Lethrop, Car Insurance Guru
CheaperCarInsurance.com

Car insurance isn’t mandatory in some states still and that has caused no end of issues. When a car isn’t insured and is involved in an accident, there is no insurance company to back the costs of the accident, even in the case of injury or death.

Wisconsin is one state that is taking this seriously. On June 1, the state is making it mandatory to have car insurance. That means drivers have less than two weeks to make sure they get their paperwork in order and have insurance on their vehicles. It will officially be illegal to be uninsured at that time and drivers could be fined $500 for not being covered.

What’s the Big Deal with Car Insurance?

Just what is the problem with not having car insurance? At first glance it seems like a pretty simple matter . . . if someone doesn’t have it they have to pay all accident and damage costs out of their own pocket, right? Unfortunately, that isn’t the only thing that happens in most cases.

• Huge medical bills have no backing
• Insurance rates go up for everyone
• Extra paperwork for everyone involved

Many times, when someone doesn’t have insurance for their vehicle, they will flee the scene of the accident. This results in the need to chase them down and find them to charge.

Most car insurance companies offer a special insurance in case an accident is caused by someone without proper coverage. This insurance, called uninsured motorist coverage, allows for repairs and may even cover medical bills if the offending party didn’t have insurance.

Lack of insurance is a huge problem at the moment. There are many people who feel they just can’t afford to have their vehicle insured. They don’t realize that they could be facing some pretty serious issues if they are stopped by the police or if they have an accident while not covered. It’s always a good idea to have insurance . . . you never know when something could happen. Even in states where this isn’t the law, it’s helpful to have some protection should there be an accident or should something happen to your car.

Car Insurance: It’s the Law

A fine might not sound like much, but those in Wisconsin are getting off easy if that’s the only thing that will happen when they drive without insurance.

Most states have much more serious consequences, including the following:

• Loss of license
• Suspension of driving privileges
• Confiscation of the vehicle
• Court hearing and possible jail time
• Community service
• You could be responsible for all medical costs of the other parties in an accident

It’s definitely worth insuring your vehicle, even if you don’t live in a state where it’s mandatory. More and more people are opting out because of prices, but the results can be bad. It’s simpler to avoid potential financial issues and find cheaper car insurance that works for your vehicle.

Posted: May 20, 2010