About auto insurance
Insurance is the system in which members of a group pool their funds to prevent catastrophic loss to any single member. Buying insurance is typically most efficient if you obtain protection against catastrophic financial losses and retain the risk of minor losses, which only prove to be financial inconveniences. That is why we often recommend buying auto insurance using three general principles:
- Buy the right amount of protection.
- Buy more liability protection rather than less.
- Choose the highest deductible amount that you can comfortably afford.
Mandatory auto insurance
Wisconsin joins the 40+ states that require liability insurance to operate a motorized vehicle. Effective June 1, 2010, the owner of a motor vehicle must have a liability policy that meets the minimum requirements for proof of financial responsibility.
Coverages
Auto insurance is a package of coverages, that together make up a policy. When buying auto insurance, remember that you are not only obtaining protection for damage to your vehicles, but potential financial liability you may have to others for damage to their vehicles or property, or injuries that you may cause.
Liability coverages
Coverages for damage to your vehicle
Recommended auto coverages
For auto insurance, we typically recommend the following coverages:
Bodily Injury: $250,000/$500,000 (per person limit/per accident limit)
Uninsured Motorist: $250,000/$500,000 (Minimum of $100,000/$300,000 required by law)
Underinsured Motorist: $250,000/$500,000 (Minimum of $100,000/$300,000 required by law)
Property Damage: $100,000
Medical Payments: $10,000 (Minimum required by law if you have Med Pay coverage)
Because every situation is different, let one of our consultants help determine the right coverage for you.
Deductibles
This is the amount of loss you will have to cover out of pocket before receiving any money from the insurance company. For example, if your deductible is $350 and claim is for $2,000, you would receive $1,650 from your insurance company. The higher the deductible, the lower the premium. Read more about choosing: The right deductible for you
What's your Auto Insurance IQ?