Liability Only Car Insurance
Not every driver needs the same level of coverage, and for some, liability-only car insurance is a practical and financially sound choice. But knowing whether it is the right fit for your situation requires more than just looking at the monthly premium. It requires understanding what this coverage actually does, where it stops, and what that means for you financially if something goes wrong.
At Colonial Insurance Agency, we help Wisconsin drivers make coverage decisions based on their real circumstances, not guesswork. If you are considering a liability-only policy, here is what you need to know before you commit.
Develop A Business Insurance Plan You Can Rely On
Property
Commercial property insurance protects your assets in the event that they are stolen, damaged or destroyed in a fire or natural disaster.
Liability
No matter the size and nature of your business, there are always uncertainties. We will work with you to determine your business risks and put together an insurance package that ensures protection.
Auto
Whether you have one vehicle or a whole fleet, we can help you implement custom coverage that will protect your business and personal assets from the additional exposure that commercial vehicles bring.
Worker's Comp
Workers’ compensation insurance covers employees injured on the job or in auto accidents while on business. It also covers work-related illnesses.
Crime
Every company is a potential target for crime. We’ll work with you to design insurance coverage that helps minimize your risk and protect your business.
Umbrella
Commercial umbrella insurance is designed to supplement your existing insurance policies, giving you an additional layer of protection for your business.
Errors & Omissions
Errors and omissions liability insurance protects any business that gives advice, makes educated recommendations, designs solutions or represents the needs of others. We’ll offer coverage that ensures that one simple mistake does not cause financial ruin.
Employment Practices
As an employer, you face a rising tide of employment practice litigation with various allegation issues. We will work with you to help you assess and manage your risk proactively.
Directors & Officers
Directors and officers liability insurance covers directors and officers for claims made against them while serving on a board of directors and/or as an officer. We work with you to protect your organization’s important asset: your senior leadership.
When Liability Only Coverage Makes Sense
Liability-only insurance is not the right choice for every driver, but there are situations where it is a reasonable and well-considered decision rather than the cheapest option available.
Your Vehicle Has A Low Market Value
If your car is older and its current market value is low, adding collision and comprehensive coverage may not make financial sense. If your vehicle is worth $3,000 and collision coverage costs several hundred dollars per year, the math often does not favor carrying it. Cheap liability car insurance in this context is not cutting corners. It is a rational response to your vehicle's actual value.
You Own Your Vehicle Outright
Lenders require full coverage on financed and leased vehicles. Once you own your vehicle free and clear, that requirement no longer applies, and you can carry only what makes sense for your situation.
You Have The Financial Cushion To Self-insure Your Vehicle
Some drivers with older, lower-value vehicles choose to set aside the money they would have spent on collision and comprehensive coverage. If your vehicle is damaged or totaled, that fund absorbs the loss instead of an insurance claim. This approach only works if you can genuinely afford to replace your vehicle without financial strain.
What Liability Only Car Insurance Covers
Liability only insurance is the most basic form of auto coverage and the legal minimum required to drive in Wisconsin. It is built around protecting other people from the financial consequences of an accident you cause, rather than protecting your own vehicle.
Liability coverage auto insurance includes two core components:
– Bodily Injury Liability: Covers medical expenses, lost wages, and legal costs for other people injured in an accident you are responsible for.
– Property Damage Liability: Covers the cost of repairing or replacing another person’s vehicle or property that you damage in an accident.
What liability-only coverage does not include is any protection for your own vehicle. If you cause an accident, the repairs to your car come out of your own pocket. The same applies if your vehicle is stolen, damaged by weather, or vandalized. Those risks remain entirely your financial responsibility under a liability-only policy.
Wisconsin's Minimum Liability Requirements
Every driver in Wisconsin is required by law to carry a minimum level of liability coverage. Understanding these minimums helps you see the floor, but it should not be mistaken for a sufficient coverage level in most situations.
Wisconsin’s minimum car insurance coverage requirements are:
– $25,000 per person for bodily injury
– $50,000 per accident for bodily injury
– $10,000 per accident for property damage
These limits may sound adequate, but a serious accident can exceed them quickly. Medical bills alone can surpass $25,000 per person, and once your liability limits are exhausted, you are personally responsible for the remaining costs. Carrying limits above the state minimum is a straightforward way to protect your personal finances from that exposure.
For a broader look at how Wisconsin structures its auto insurance requirements, Vehicle Insurance Wisconsin covers what drivers across the state are required to carry and what additional protections are worth considering.
Where Liability Only Coverage Falls Short
Understanding the limits of a liability-only policy is just as important as understanding what it covers. There are several scenarios where this level of coverage leaves you significantly exposed.
If you cause an accident, your liability coverage handles the other party’s costs. Your own vehicle repairs are not covered. If your car is stolen or damaged in a hailstorm, you absorb the loss entirely. If an uninsured driver hits you, you have no collision coverage to fall back on unless you have added uninsured motorist coverage separately.
Drivers weighing liability vs full coverage often find that the right answer depends heavily on their vehicle’s value, their financial situation, and how much risk they are comfortable carrying on their own.
Liability Only vs. Full Coverage: The Core Trade-off
The decision between liability only and full coverage comes down to one fundamental question: Can you afford to replace or repair your vehicle out of pocket if something happens?
If the answer is yes and your vehicle’s value is modest, liability-only coverage may be a reasonable choice. If the answer is no, or if your vehicle holds meaningful value, the added cost of collision and comprehensive coverage is worth it.
Wisconsin auto insurance options vary widely between carriers, and an independent agent can help you compare what full coverage would actually cost versus the financial risk you would be carrying without it. That comparison often looks different from what drivers assume before they run the numbers.
What Affects Liability Only Insurance Quotes
Liability-only insurance quotes vary between drivers and carriers based on several factors. Even at the most basic coverage level, your premium is shaped by your individual risk profile.
– Your Driving Record: Accidents, violations, and claims history all influence your rate. A clean record typically results in lower premiums.
– Your Age & Experience: Younger or less experienced drivers generally pay more due to higher statistical risk.
– Your Location: Urban areas with higher traffic density and claim rates, such as Milwaukee, tend to carry higher premiums than rural communities. Drivers in those areas can compare options through auto insurance Milwaukee.
– Your Liability Limits: Choosing limits above the state minimum increases your premium modestly but substantially improves your financial protection.
– Your Vehicle: Even on a liability-only policy, the vehicle you drive can affect your rate.
What Our Clients Are Saying
Colonial Insurance Agency is committed to providing our clients with the exceptional service that they deserve.
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Dan provides exceptional service and expertise! He tailors the perfect coverage to fit needs and budget, explaining everything clearly and promptly addressing any questions. I highly recommend him for anyone seeking reliable insurance guidance.
Dylan
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We have been with Colonial Insurance for many, many years and have received nothing but five-star service. Don and Dan MacLeod and their staff have been amazing to work with. Our two children are also with Colonial and are very happy as well.
Earl
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Jack Larsen has done a great job quoting everything from auto, home, and business insurance for me and my family. He is professional, knowledgeable, and prompt with his communication and work. I would recommend Jack and Colonial for any and all insurance needs.
Jerad
Protecting Your
Home. Work. Future.
Frequently Asked Questions
What is liability-only car insurance?
Liability-only car insurance covers damage and injuries you cause to others in an accident. It does not cover repairs to your own vehicle, theft, weather damage, or other losses that directly affect your car.
Yes. Liability only coverage meets Wisconsin’s minimum insurance requirements, provided you carry at least the state-mandated limits for bodily injury and property damage.
Costs vary based on your driving record, age, location, vehicle, and the liability limits you choose. Comparing quotes from multiple carriers is the most reliable way to find accurate pricing for your profile.
Yes. Uninsured and underinsured motorist coverage can typically be added to a liability-only policy. Given that not all drivers on Wisconsin roads carry adequate insurance, this addition is worth considering even if you choose not to carry collision or comprehensive coverage.
In most cases, yes. Wisconsin’s minimum limits are low relative to the actual cost of a serious accident. Carrying higher limits protects your personal assets if a claim exceeds the minimum thresholds.
If you purchase a newer or higher-value vehicle, take out a loan or lease, or find that your financial cushion no longer comfortably covers the cost of replacing your car, it is worth revisiting your coverage level. An agent can help you evaluate when the switch makes sense.
Get A Quote For Liability Only Car Insurance In Wisconsin
Liability-only car insurance works well for the right driver in the right situation, but making that call confidently requires a clear picture of your vehicle’s value, your financial exposure, and what you are giving up without broader coverage.
At Colonial Insurance Agency, we help Wisconsin drivers think through those trade-offs honestly and compare options across multiple carriers. Whether liability-only is the right fit or a stepping stone to a more comprehensive policy, our team is here to help you make the decision with confidence.
Call (262) 255-3770 today to request a quote and talk through your liability coverage options with a local agent.
Colonial Insurance Agency specializes in all aspects of business and personal insurance. Contact us anytime for the best service and advice for all your insurance needs.
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