If your personal or business auto insurance has been canceled, non-renewed, or denied commercial auto insurance coverage, and you’re having trouble finding coverage, you should know there’s an auto insurer of “last resort” that many go to when coverage elsewhere isn’t available.
While assigned risk auto pools aren’t the best rates compared to other auto insurers, surprisingly for some, the Wisconsin Automobile Insurance Plan is often priced better than some high-risk insurance companies, especially for commercial auto coverage.
The Plan was established way back in October, 1949 to provide coverage when no other could be found.
In order to get coverage from the Wisconsin Automobile Insurance Plan, you must have a Wisconsin registered vehicle, as well as a valid driver’s license from, you guessed it, Wisconsin. You must also be current with any previous insurance. In other words, if you were canceled for non-payment of your auto insurance, and are now looking for alternative coverage without paying your old bill, this won’t do the trick.
You must also demonstrate trouble in buying auto insurance. This is usually the easy part, because anyone that wants to use the Wisconsin Automobile Insurance Plan almost always (I’ve never experienced an exception to this rule, albeit I’ll qualify the statement with “almost”) has been non-renewed or canceled from their auto insurance policy.
You can use the auto insurance plan for a few years until you get your driving record / insurance claims cleared up and move on to another lower-cost carrier. If for whatever reason your record doesn’t look well enough to find coverage in the voluntary (regular) insurance market, we can re-apply for coverage with the WAIP and they’ll likely assign your account to another auto insurance carrier.
How much coverage can you get? Generally speaking, you can buy the state legal requirement, or if you’re for-hire transportation, the minimum amount required by the federal rules to maintain your federal authority in the type of goods transported.
Some questions that often comes up when discussing the Auto Insurance Plan.
How soon can coverage be bound?
It’s a manual process with payment up front and things aren’t done online. This means, the amount of time (and effort) required to place a policy with the Auto Insurance Plan is much greater than “normal” insurance carriers. Once the Plan receives (via snail mail at the time of this writing, maybe that will have changed by the time you read this) all the required information, the policy is bound the next day. In other words, in a perfect world, one should allow for one to two weeks from the start to the time coverage is in effect.
What auto liability insurance limits are available?
Liability limits include:
|Bodily Injury||Property Damage|
Medical, uninsured motorist, underinsured motorist, and physical damage (comprehensive and collision) coverage is available through the plan.
Physical damage deductible options are:
How long can I be on the Wisconsin Auto Insurance Plan?
As long as you remain in good standing with the Plan, including making payments and keeping a valid driver’s license, your auto insurance policy will renew each year for four years.
Robert Weinstein is a husband, dad, stock market junkie, real estate broker, and of course…Insurance agent. Interests include my family, economics, marketing, technology, real estate, finance/investing, history, and Asia.
Robert’s insurance expertise includes having the designation of Certified in Long-Term Care (CLTC) and assist in asset protection for families with members entering retirement.
Robert is also an accomplished syndicated writer whose work can be found in TheStreet, MainStreet, CNBC, Forbes, Yahoo Finance, Seeking Alpha, MSN Money, The Money Show, Stock Saints, Motley Fool, Fidelity, Minyanville, RealMoney Pro, and many national and international newspapers.