BAM Insurance Associates, Inc.

December 1, 2010 marks the day Wisconsin’s new Texting While Driving Law takes effect.  This is one you may want to pay attention to.  Get busted for a first time drunken driving in Wisconsin and the fine ranges from $150 to $300.  So how does that compare to Texting While Driving?  The fine for a first offense ranges anywhere from $20 to $400!  I’ll let you decide which dollar amount the law enforcement agency that wrote you the ticket will go for.  Oh, and don’t forget the 4 points on your driver’s license.  Now let’s say you didn’t get the “message” after your first Texting While Driving ticket and you get a second one.  No problem.  This time the fine only ranges from $200 to $800 and 4 more points.  Careful, you are about to lose your license.  Get it?  Wisconsin is serious about this.  Don’t do it.  It could get expensive and it really is dangerous, not only for the texter, but for everyone else unfortunate enough to be in their path.  If you do get a ticket and your insurance rates go up (and they will), I’ll let you look around this web site and figure out what you can do to get lower rates.

Hello Wisconsin, we are joining 48 other states on June 1, 2010.  On that day, Wisconsin becomes a mandatory car insurance state.  So what does that mean?  For those of you that don’t have insurance, you have to get it before you drive a car.  The ticket price in many other states for driving without insurance is $500.  Given Wisconsin’s love of taxes and fees, I assume Wisconsin will similarly have a pretty hefty fine waiting for those caught driving without car insurance.  The #1 question I get at BAM Insurance is this.  Will my car insurance rates go down now that insurance will finally be mandatory?  As I peer into my imperfect crystal ball and attempt to predict the future, here is my answer.  I suspect that there will be very little, if any, impact on car insurance rates at first.  After that, my crystal ball believes that rates will begin to rise some time in the next 6 to 18 months as a result of the new mandate.  Why, you ask?  I could be wrong, of course, but I believe that the newly insured drivers will cause insurance companies to pay more money out in “new” claims than they will be able to collect from the “new” insurance premiums generated from these same drivers.  This will force insurance companies to raise rates on everyone else to help cover the new, mandate induced, costs.  Remember, there are only 2 states that don’t currently have mandatory car insurance laws.  If making insurance mandatory causes insurance prices go down, how do you explain the fact that Wisconsin currently has some of the cheapest insurance rates in the United States?  I am making the assumption that by adopting the same mandate as all the other states, Wisconsin will similarly experience the same higher car insurance rates.  This is one of those times where I truly hope I am wrong. 

Are you reading this hoping to hear that rates will actually go down because of the new mandate?  If you aren’t already a BAM client, you don’t have to wait to get lower car insurance rates.  Click on the yellow “Auto & Home Quote” ribbon.  Most people pleasantly discover that not only can they get a lower price than they are currently paying, they often get better coverage.  It only takes a few minutes.  Get a quote today.