Your ZIP code could affect your auto insurance rates.
As I explained in my blog Sept. 1, we should brace for our insurance costs to rise between 25 percent and 50 percent.
Much of that cost can be blamed on higher minimum levels that Gov. Jim Doyle pushed through in the new state budget. Now, the minimums are $50,000 per person and $100,000 per accident for bodily injury; $15,000 for property damage and $1,000 for medical payment.
You can read more about it in that blog here.
Another legislative proposal could further boost auto insurance rates for most of us. Senate Bill 289 would prohibit insurance companies from using ZIP codes to set rates. Sen. Tim Carpenter, D-Milwaukee, also introduced the measure last year. He did so after hearing complaints from his constiuents that people who moved a few blocks into a different ZIP codes were suddenly paying higher insurance rates. His proposal would ensure that premiums are based on driving records, years of driving experience and miles driven.
Industry experts say ZIP codes are a reliable predictor for insurance rates because crashes are more likely in urban settings. They claim Carpenter's bill would drive up insurance rates 10 percent to 12 percent in Madison and even more in rural areas because drivers outside of Milwaukee would have to subsidize those paying higher rates under current rules.
Your thoughts?
Greg Peck
Oct 11, 2009 at 3:55 p.m.
Suggest removal
spudbeach..."Higher minimum coverage wouldn't affect me in the least -- I already carry higher than the new minimum."
Good luck, I had always carried the higher 100/300 for liability,underinsured & uninsured and my premiums went up $200. (No tickets or accidents)
Oct 11, 2009 at 12:04 p.m.
Suggest removal
I drive a 98 Chevy and it's not getting any younger. Why do I want to pay higher premiums every month for something that in the end will not benefit me? My car is worth nothing anymore and if something were to happen to me or my car, because I carry liability only, the insurance I carry doesn't do anything for me. I'd be better off pocketing that money every month and saving it for a 'what if'. Am I right or am I wrong?
On the ZIP code topic. I now live over in Milwaukee county but my insurance is still covered in Rock County. I don't live in Milwaukee but close enough that my rates will sore through the roof once I notify them of the change. I am a very careful driver, but I can't speak for the rest of Milwaukee County. I do not agree charging more based on your ZIP code is fair, however, I do not think it's fair to now pass this cost on to other state residents.
Both of these new laws if passed I feel will screw the little person and make more low income residents not do the right thing.
Oct 10, 2009 at 6:09 p.m.
Suggest removal
this will just increase the number of drivers to have no insurance and less protection for the the ones who have it.
Oct 9, 2009 at 7:30 p.m.
Suggest removal
spudbeach..."Higher minimum coverage wouldn't affect me in the least -- I already carry higher than the new minimum."
Think again...it will cost you more for the same coverage....you're dreaming if you think it won't.
Oct 9, 2009 at 6:46 p.m.
Suggest removal
Whether it is medical, auto, homeowners insurance all has and will continue to rise because of the underinsurered. Have any one checked their electric bill lately? On the actual bill everyone is paying for state low income percentage. I am low income and I am still paying for others who may or may not need this assistance. Any where we turn these days, we all have to pay the consequences of others in our money driven society. There is ALWAYS a HIDDEN FEES somewhere when we are not looking at our bills. So go figure?!
Oct 9, 2009 at 4:19 p.m.
Suggest removal
Greg, the minimum medical payments limit is $10,000 not $1,000. Also the new insurance law mandates uninsured and underinsured motorist coverage with limits of 100/300. Even if you already have the required coverage and limits your premium will increase. In part because in addition to mandating underinsured motorist coverage the legislation also changed the way coverage is applied and ,in some instances, allows stacking coverage from as many as three vehicles. These changes will increase the cost of those coverages because they will result in more and larger settlements. Fortunately these increases are relatively modest.
Oct 9, 2009 at 3:01 p.m.
Suggest removal
Higher minimum coverage wouldn't affect me in the least -- I already carry higher than the new minimum.
.
You should too.
.
It's not hard to think of an accident that can cause more than $15,000 in property damage. What if you total a new car? Heck, even a bottom of the line Chevy is $20,000. A new Cadillac is $50,000, and that's what your property coverage should be.
.
The personal injury protection is kind of low too. What if you injure somebody's spine, and they never walk again? They'll come after you for way more than $100,000 -- how about millions?
.
Remember, your insurance coverage isn't a maximum for what you can owe -- it's a maximum on what your insurance company will pay. Anything more comes out of your pocket, your bank account, your home, wherever they can get it.
.
Protect yourself.
Oct 9, 2009 at 3 p.m.
Suggest removal
Sannio -- I still think they can do a soft hit. I have a fraud lock on mine yet the insurance company can still do a soft scrape.
Oct 9, 2009 at 2:45 p.m.
Suggest removal
What about using credit ratings to determine rates? They do that too. I have a lock on my credit rating, and nobody can look at them without my permission.
Oct 9, 2009 at 2:36 p.m.
Suggest removal
If you live out in the country, your zip code does not necessarily reflect where you live. (A lot of WI is still rural.) I live less than a mile outside of Afton, but have a Beloit zip code. I know someone who lives right outside of Orfordville, but has a Janesville zip code. I would guess my chances of having my car stolen is a lot less than someone living in the more dangerous parts of Beloit, yet our zip code would be the same.
Oct 9, 2009 at 1:05 p.m.
Suggest removal
Rates based on location make sense to me. Rates based on credit reports make absolutely NO sense to me. Seems Sen. Tim is barking up the wrong damn tree.
Before you post a comment, consider this:
Note: GazetteXtra.com does not condone or review every comment. Read more in our User Policy AgreementPost Comment
Commenting requires registration.