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• WI Auto Insurance
• Car Insurance Companies of Wisconsin

Top Wisconsin Car Insurance Companies | Auto Ins Company Info

Learn How Wisconsin Auto Insurance Agencies Determine Rates

Car insurance rates are based on the theory that only a small portion
of all drivers will be involved in accidents. The premiums
paid by all insured Wisconsin drivers are used to cover the
losses caused by drivers deemed at fault for causing an auto accident. When you
buy a new car insurance policy, you are financially protecting your assets, which could otherwise be garnered to cover damages. You are also able to cover the financial losses of a person injured through your fault.

The follow Q&A is provided from the Wisconsin Commissioner of Insurance website.

• Can I require the insurance company to replace my car?
• What is meant by aftermarket parts?
• The insurance company is totaling my car. How can I make sure I get what its worth?
• The other driver’s insurance company wants me to sign a release on my injury claim. How long can I delay this?
• What is meant by comparative negligence?
• When may an insurance company cancel my auto insurance during the term of my policy?
• When may an insurance company non-renew my auto insurance policy?
• Does an insurance company have to say why it refused to renew my policy?
• Does my auto insurance policy have a grace period?
• Can credit history be used as a reason to non-renew or refusal to renew my car insurance?
• What can I do if my policy has been canceled or non-renewed and I cannot find another insurance company that will write auto insurance for me?

Can I require the insurance company to replace my car?

The personal auto policy is not a replacement policy. Coverage for your car is based on actual cash value. The actual cash value (ACV) of your car is based on the value of your car at the time of the accident, taking into account its current market value. Therefore, the insurance company’s obligation is to repair the car based upon its actual cash value not its replacement cost.

What is meant by aftermarket parts?

Auto repair shops may use aftermarket and/or used parts when repairing or replacing a damaged part (i.e., bumpers, bumper covers, and associated bumper parts, etc.). Aftermarket parts are produced by companies other than the original equipment manufacturers (known as OEM parts).

Auto insurance contracts do not generally specify what parts will be used. You may request that aftermarket parts not be used to repair your vehicle, but you are responsible for any repair costs that exceed the final claim settlement negotiated with the insurance company.

The insurance company is totaling my car. How can I make sure I get what its worth?

An insurance company totals a car if repairs would cost more than it is worth. An insurance company will use various sources to value your car, including, but not limited to the National Automobile Dealers Association Used Car Guide (“Blue Book”) or the CCC Information Services, Inc., guide. The company’s offer, therefore, might not recognize your car’s condition, special features or value on the local market. A company is more likely to raise its offer if you can show that your car would sell for a higher price in your area. Keep the lines of communication open. Get several used car dealers’ to write price quotes for a similar automobile. Newspaper used-car ads also can build your case. Remember these quotes and ads provide asking prices and the actual value or sales price could be lower.

The other driver’s insurance company wants me to sign a release on my injury claim. How long can I delay this?

Sign the release when you are satisfied with your total settlement. Get a letter from your doctor estimating the cost and length of your future medical treatment. You may, of course, consult an attorney before accepting a settlement. You have three years after the accident, under Wisconsin law, to either settle your claim or file a lawsuit.

What is meant by comparative negligence?

Wisconsin has a comparative negligence law that means responsibility is frequently shared. The comparative negligence law is based on a percentage of negligence. This means you may recover damages from another party providing your negligence is not greater than the other party, but your damages shall be reduced by the percent of negligence attributed to you. You are barred from recovery if your negligence is greater than another party’s negligence.

When may an insurance company cancel my auto insurance during the term of my policy?

An insurance company may cancel a new policy any time within the first 60 days and are not required to provide you with a reason for the cancellation. A cancellation is also permitted during the terms of the policy if the premium is not paid when it is due, discovery of fraud or material misrepresentation made by you or your representative in obtaining your insurance, or by your pursuit of a fraudulent claim under your policy, or significant changes in insuring characteristics. For the situations discussed above, no cancellation is effective until at least 10 days after the insurance company mails or delivers to you a written notice of cancellation.

When may an insurance company non-renew my auto insurance policy?

Non-renewal refers to the termination of a policy at the expiration date. If an insurance company decides it does not want to renew your policy, it must mail or deliver to you a non-renewal notice at least 60 days before the policy’s expiration date.

Does an insurance company have to say why it refused to renew my policy?

Yes, the non-renewal notice must provide the reason for its decision to non-renew a policy.

Does my auto insurance policy have a grace period?

Unlike health insurance policies, auto insurance policies, do not have a required grace period. The premium is due, at the insurance company, on the date identified on the premium notice. If the premium is not received by that date the policy automatically terminates.

Can credit history be used as a reason to non-renew or refusal to renew my car insurance?

Insurers may use credit information as one of the criteria they consider when underwriting personal lines insurance. However, it is the position of the Wisconsin Insurance Commissioner’s Office that insurers should not use credit information, whether they use credit reports or credit scoring mechanisms, as the sole reason to refuse an application, cancel a new insurance policy in its first 60 days of coverage, or non-renew an existing policy.

What can I do if my policy has been canceled or non-renewed and I cannot find another insurance company that will write auto insurance for me?

If you try several insurance companies and cannot find coverage, you can be insured through the Wisconsin Automobile Insurance Plan. You can apply through any licensed property and casualty insurance agent. For general information on the plan, you may call or write to Wisconsin Auto Insurance Plan (WAIP), 20700 Swenson Drive, Suite 100, Waukesha, WI 53186 (262) 796-4553.

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