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Can credit history be used as a reason to nonrenew or refuse to renew my automobile insurance?
Insurers may use credit information as part of the criteria they consider when underwriting personal lines insurance.
However, it is the position of the Wisconsin Office of the Commissioner of Insurance (OCI) 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 for nonrenewal of an existing policy.
What can I do if my insurance company cancels or elects for nonrenewal of my policy and I cannot find another
insurance company that will write automobile insurance for me?
If you have tried several insurance companies and cannot find coverage, you may be insured through the Wisconsin
Automobile Insurance Plan. You may apply through any licensed property and casualty insurance agent. For general
information on the plan, you may call or write to:
Wisconsin Automobile Insurance Plan (WAIP)
20700 Swenson Drive, Suite 100
Waukesha, Wisconsin 53186
1-800-827-5964
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How much will my insurance cost?
Premiums or the amount you pay for insurance can vary. The type of vehicle you drive, driving record, age, gender,
where you live, and how much you drive usually affect the cost.
What affects the price of automobile insurance?
When determining the rate for an automobile insurance policy, insurers separate drivers into categories called
classifications. Drivers are classified based on several different characteristics including, but not limited to, age and
gender, marital status, where the vehicle is garaged, driving record, make and model of the vehicle, prior insurance
coverage, and annual miles driven. History has shown drivers with certain characteristics, such as a poor driving
record, have a greater chance of being involved in an accident, and the drivers in those classifications must pay
higher
rates. While some of the classification criteria (such as age and sex) are out of your control, others, such as
driving record and type of vehicle driven, are within your control.
Can the driving and accident records of my child and spouse have an impact on my ability to buy automobile
insurance?
Yes, the driving record of any licensed driver in the household could affect the decision of the insurance company to
insure your vehicle(s). Their records can cause you to be turned down for insurance coverage or to pay higher
insurance premiums.
Is there a way I can reduce my premiums?
Every automobile insurer has its own package of special discounts to attract particular customers. Most insurance
companies provide discounts for at least some of the following: accident-free drivers discount, a package discount
for insuring your home and automobile with the same company, multi-vehicle discount, good student discount,
nonsmokers discount, or passive restraint discount (for vehicles with airbags or automatic seat belts). You may also
consider higher deductibles for your comprehensive and collision coverages.
Can my insurance company raise my premium due to an accident or traffic ticket?
Your insurer may charge an extra fee, a surcharge, if you are involved in a chargeable accident or were ticketed for
a traffic violation. Surcharges must be applied uniformly and are required to be filed with OCI. However, OCI plays
no role in your insurance company's decision to raise your premiums.