Archive for December, 2009

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.

If you drive a vehicle–car, motorcycle or truck–you will be affected by the recent changes in Wisconsin’s insurance law. “Truth in Auto Insurance” provisions were enacted into law in Wisconsin in July 2009.
Wisconsin is the second-last state to require its drivers to have insurance. The last holdout is New Hampshire. According to the Commissioner of Insurance Web site  http://oci.wi.gov/faq/auto.htm

After June 1, 2010, Wisconsin drivers will be required to have an automobile insurance policy in force or, in limited situations, other security which could be a surety bond, personal funds, or certificate of self-insurance. Details are available at the Department of Transportation, Division of Motor Vehicles (DMV), Hill Farms State Office Building, 4802 Sheboygan Ave., Madison, WI 53702.

Other major changes include:

INCREASED MINIMUM LIABILITY REQUIREMENTS
A minimum insurance liability coverage requirement for an accident increases from $25,000 to $50,000 for injury or death of one person,  $100,000 for injury or death of two or more persons (up from $50,000),  and $15,000 for property damage (up from $10,000). These limits apply to new and renewed policies issued after November 2, 2009. The previous minimum coverage levels had been on the books for over 20 years and were increasingly inadequate to cover the cost of serious injuries with the high cost health care.

Why is this beneficial?
While it may increase the cost of insurance for those who were purchasing the minimum allowable, it offers better coverage and protection for drivers and victims if and when they get into accidents. Too often, our firm has seen cases where the insurance coverage was not adequate to compensate people for their medical bills, pain, suffering, and losses. The “coverage” clients hoped was there did not really cover the incident adequately.

REQUIRED UNINSURED/UNDERINSURED COVERAGE AND MEDICAL PAYMENTS
Underinsured motorist coverage and medical payments coverage become mandatory under the new law. Uninsured and underinsured motorist insurance coverage now must be at least $100,000 per person and $300,000 per accident. This insurance is intended to cover the victim when hit or injured by an at-fault party who does not carry any insurance (uninsured) or carries inadequate insurance (underinsured). Medical payments coverage must be at least $10,000 and is intended to provide funds to pay your medical bills regardless of which party was at fault.

You might ask why you have to have the coverage if EVERYONE is supposed to now carry adequate insurance. The answer is that while it is the law, not everyone will obey it. If you are in a serious accident caused by an uninsured or underinsured driver, you can suffer severe economic loss. The coverage that you purchase helps cover high medical and recovery costs.

Why is this beneficial?
This  protects  YOU and your family  from someone who does not cover his/her liability thoroughly. In the past, if the at-fault party did not have adequate insurance, the victim was just out of luck.

REDUCING CLAUSES ELIMINATED
The new law does away with “reducing” clauses. That means the proceeds from an underinsured at-fault driver’s liability insurance cannot be subtracted from the amount of the innocent driver’s underinsured coverage. This provision means that insurance companies selling insurance must provide the full amount of the insurance you paid for.

Why is this beneficial?
People were often surprised to learn that their coverage really wasn’t what they thought. In the past, your underinsured motorist coverage would cover only the amount NOT covered by the at-fault party’s insurance. So, even though you thought you could collect up to the full amount of the policy, the insurance companies were paying only the difference between what the at-fault party paid and your insurance coverage. Now, you are entitled to collect up to the maximum value of the insurance coverage  you paid for.

There are two more major provisions you need to know about:  anti-stacking and the removal of physical “hit” requirement for hit-and-run accidents. I will write about this in a few days. But enough law for now.

As always, our firm invites inquiries about the law as it applies to your personal injury claim. Call us at 800-227-6699.