Changes to Wisconsin’s Auto Insurance Law—Part II
Last blog, I explained several of the changes in Wisconsin’s new insurance law, called “Truth in Auto Insurance.” You will notice these changes when you are purchasing auto insurance, because the minimum coverages have gone up and auto insurance is now mandatory. See (previous blog article or Wisconsin Insurance Commissioner web site http://oci.wi.gov/faq/auto.htm.
Another time you will be affected is if you are in an automobile accident. Some of the tricks insurance companies played with their coverage are now eliminated from the market. Even though no one likes to pay more for more insurance, I would say that the benefits outweigh the costs. Our attorneys have seen the sad consequences when there is inadequate insurance to cover a severe accident. Nothing is more difficult for a personal injury attorney than telling a seriously injured client he or she cannot be justly compensated for their loss and injuries because there was simply not adequate insurance coverage.
There were two other changes to note:
HIT REQUIREMENT ABOLISHED
The physical “hit” requirement for hit-and-run accidents was removed from the law. In the past, drivers who were forced off the road or into another vehicle could not make claims against their uninsured motorist’s coverage unless their car was physically struck by the vehicle which fled the scene. This penalized drivers who tried to avoid impact. The new law permits drivers to seek recovery from their uninsured motorist coverage if there are independent witnesses to verify that the accident was caused by a driver who fled the scene.
Why is this beneficial?
If an oncoming car forces you to swerve and hit another vehicle or object, your insurance previously would not cover unless there was actual impact. Meanwhile, the driver who caused the accident runs away and you are stuck with the bill. Now you can collect from your uninsured motorist coverage insurance as long as you can produce testimony from an independent witness that the absent vehicle caused the accident.
ANTI STACKING OUTLAWED
Another change outlaws the “anti-stacking” provisions common in insurance policies. These provisions restricted uninsured motorist/underinsured motorist coverage to one single limit, no matter how many policies you purchased and how many vehicles were covered. Now, you may “stack,” or “combine the applicable limits from multip0le policies and vehicles (up to three) if the first one does not completely cover the damage from a single accident.
Why is this beneficial?
Now seriously injured persons can collect benefits from the policies they paid for.
The changes were enacted into law in Wisconsin in July 2009 and apply to motor vehicle insurance policies issued or renewed after November 2, 2009.
No one wants to get into an accident, but if you do, you will be glad some of these provisions are in place. They will protect consumers from inadequate coverage and prevent insurance companies from using devious methods to deny you the benefits you are entitled to.
If you are injured in a motor vehicle accident, do not hesitate to call Hausmann-McNally at 800-227-6699 for advice on how to proceed. Our knowledge and experience can be a great benefit when you need someone to fight for your rights against insurance companies who–as these necessary changes in the law demonstrate—have put their bottom line ahead of their customers.
