While we don’t encourage a client to only have the minimum coverages for auto liability, there are times when the cost to increase that coverage is just not cost effective. Therefore, if you must have the state minimum coverage, which in Wisconsin is $25,000 per person for bodily injury (BI) , $50,000 for BI/Accident and $10,000 for property damage, and we urge you to look at increasing the property damage to $25,000.
In the event you were at fault in an accident, some insurance carriers use the Property coverage to cover not only the repair or replacement of the other party’s vehicle but also the cost to tow and store their vehicle and the cost to cover the rental car they will require while their vehicle is being repaired. In that case, with the $10,000 coverage, the possibility of you being liable for additional money to cover what your policy does not could be substantial.
As an example, let’s say you damaged a vehicle and the cost to repair it is $10,000. Furthermore, the rental coverage for the other party is $600, the towing is $150 and the initial storage costs were $250. That means that you could be liable for the additional $1000 of expenses over the $10,000 when for a minimal amount of $10/month (Example only) you could have increased your property damage to $25,000, thereby saving you the burden of paying out additional money that your insurance carrier could have covered.