In another article, we looked at the decision of the Wisconsin state government to double the minimum liability insurance requirement. It had been $25,000 per individual injured and $50,000 for multiple claimants in a single traffic accident. This doubled to $50,000 and $100,000 respectively. There was a general feeling this would push an increasing number of the poor into driving without insurance. And, as was predicted at the time, one of the results of this change in the law has been an increase in the premiums. In some ZIP code areas, the rates have gone up by as much as 40%. This has put a lot more pressure on family budgets around the state.

At the same time this law was going through the state legislature, a second bill was produced which increases the pressure on law enforcement to check whether drivers are carrying valid insurance. This is a logical development. There is little point in making it mandatory to carry liability coverage if there is no effective enforcement. So, as from June 1st, all drivers in Wisconsin must carry proof of a valid insurance policy in their vehicles.

No distractions, please. I’m driving!

There are many ways in which you can describe some of Big Government’s departments and their campaigns. Feeling polite and well-balanced, you can say some are worth every cent. Then you get others where you cannot help feeling a little insulted. Like this site: National Highway Traffic Safety Administration. Hey, come on, guys. We are all drivers here and we know how to drive safely. Except, perhaps, we “kinda” forget some basic rules when we get behind the wheel and back out of the driveway. So just how bad is it?

Well, the police are supposed to report the circumstances of all the traffic accidents they attend. This does not always produce a reliable record but, in 2008, the police recorded driver distraction as the main cause in almost 6,000 deaths (that’s about 15% of all the fatal accidents in the US) and more than 500,000 injuries. So just what is distraction for these purposes. The list is what you would expect:

Are you new in business? Or perhaps have been running it for years? Whether it’s a new one or already existing, you need to make sure you know how to protect it. If accidents happen, are you ready? Are you protected?

Commercial insurance is an important protection from theft, property damage and liability. It is your protection against large out-of-pocket expenses. It also provides coverage for business interruption

The great temptation whenever you start shopping around is to assume you can afford to buy whatever you are looking for. It comes from those long-lost days when credit card companies would write you every month with good news about your borrowing limits. You were tempted into more debt, but it meant never really having to worry about whether you could afford to buy. The additional money would simply be added on to your overall debts.

Now the credit crunch has settled in as your permanent house guest, it’s a good idea to start doing a real set of accounts to keep track of your family’s spending. Why bother, you ask? The number of foreclosed property up and down your streets, the number of business shuttered on Main Street, should give you a clue. People who hope for the best when trying to live beyond their means usually come unstuck. Now’s the time to count the dollars and cents. When you are employed, you know exactly how much money you have coming in every month. When you are self-employed, your income is likely to go up and down, making it more difficult to budget. The best you can do is average the monthly income over the last twelve months. Now let’s list the main headings.

There are two ways of running an insurance group. One is to make everyone pay the same premium rate. At first sight, this is the fairest approach. The insurer estimates the total value of the claims in a year, divides that by the number of people in the group, and that sets the premium rate. Except, this means the best drivers are subsidizing the worst. How can it be fair for a person who has never been involved in a traffic accident in, say, thirty years of driving, to be told to pay the same rate as a young man who has totaled his first three cars? Indeed, if everyone pays the same no matter how well or badly they drive, no-one has an incentive to drive well. We might just as well all treat the roads as a non-stop, old-school jalopy derby event. That gives the edge to the second approach which is to tailor the premium rate to the class of driver. Some groups of drivers are safer than others. Overall, women drivers have the fewest accidents and, when they are involved in an accident, there is less damage. How come? Because, as a rule, women drive within the law and more slowly than men. So, even if there is a crash, it happens at a slower speed. If you are a woman, always look for the exclusive female policies. The better insurance companies run women-only groups and the rates are always significantly lower than for any other group.