Auto insurance changes for June

GREEN BAY, Wis. - Automotive insurance in Wisconsin is on the fast track to change.

Brown County Democratic spokesperson Sam Dunlop said Wisconsin's law to insure all motorists was created with safety in mind.

“Safety was always the most important reason, making sure that people are covered in the event of an accident,” said Dunlop.

But that safety could come at a price.

“It is likely that for many the premium is gonna increase,” said Ameriprise Senior Vice President of Insurance Operations Dianne Wilson.

Wilson said the law increased how much coverage a driver must have. That went into effect in January.

“As coverages go up of course the premium increases are going to go up,” said Wilson.

With premium increases, some worry the state's attempt to keep all drivers insured will have an opposite effect. Wisconsin Insurance Alliance President Andy Franken says about 14 percent of Wisconsin drivers are uninsured. And that number could actually increase.

“We have argued that we're actually driving up the amount of uninsured drivers out there now because of the cost,” said Franken.

He said even though insurance will be required, not everyone will abide.

“This is somewhat of a false hope. There are drivers out there who are not going to purchase insurance, whether it's required or not,” said Franken.

But Dunlop argues auto premiums in Wisconsin were going to increase, regardless of the law.

“A lot of these premiums have been increasing a lot in the last decade,” he said. “So much so that between September of 2008 and July of 2009 we saw an increase in Wisconsin above the national norm.”

Dunlop said rates will increase for the time being, but more competition will change that.

“By putting more people in the market, people can actually have a lower premium by having greater access,” said Dunlop.

While there is debate over whether required insurance will increase or decrease rates, there is one financial increase that is certain. Not having insurance will cost you.

According to the Wisconsin Department of Motor vehicles, driving without insurance could cost you up to $500. Fraudulent insurance will carry fines up to $5,000.