Understanding Auto Insurance in Connecticut
Auto insurance typically includes six types of coverage, depending on your policy’s specific declarations. The types of coverage can vary based on state laws, with some being mandatory and others optional.
Besides providing financial protection, auto insurance serves as a social responsibility. Driving without insurance or the means to cover damages puts others at financial risk. Most states, including Connecticut, require automobile owners to demonstrate their financial ability to cover liability costs in the event of an accident. This can be done by posting a bond or carrying auto insurance.
Don’t Just Settle for the State Minimum
In Connecticut, the minimum required coverage limits are as follows:
| Coverage Type | Minimum Requirement |
|---|---|
| Bodily Injury Liability | $25,000 per person, $50,000 per accident |
| Property Damage Liability | $25,000 |
If you cause damage that exceeds these limits, you will be personally responsible for the excess amount. For instance, if you injure someone and their treatment costs more than $25,000, you are liable for the remaining amount not covered by insurance.
Gaps in Coverage
By only carrying the state minimum, you risk being held 100% responsible for any amount above your coverage, jeopardizing your assets and future earnings due to potential civil judgments. The average settlement for bodily injury claims in Connecticut can range from $15,000 to $50,000, while property damage claims can average around $3,000 to $10,000. If you only have the minimum coverage and face a claim that exceeds these amounts, you could be personally liable for the difference, leading to significant financial strain.
Coverage Types
Here are the basic types of car insurance coverage available, along with a brief overview:
Collision Coverage: This insurance covers your vehicle in the event of a collision, whether with another car or a stationary object like a wall or barrier. It helps pay for repairs or replacement of your vehicle.
Comprehensive Coverage: This protects your car from incidents not related to collisions, such as theft, fire, vandalism, or hitting an animal like a deer.
Liability Coverage: This is required by law in Connecticut and covers damages you cause to another person’s vehicle or property when you are at fault in an accident. Ensuring you have adequate liability coverage is crucial.
Medical Payments (MedPay): Also known as Personal Injury Protection (PIP) in some states, this coverage pays for injuries to you or your passengers resulting from an accident, regardless of fault.
Combined Single Limit vs. Split Limit Coverage
When it comes to liability coverage, you may encounter two common structures: combined single limit (CSL) and split limit coverage.
Combined Single Limit (CSL): This type of coverage provides a single dollar amount that covers all types of liability, including bodily injury and property damage. For example, a CSL policy might have a limit of $500,000, meaning that this amount can be used to cover any combination of bodily injury and property damage claims. This offers greater flexibility in how claims can be paid.
Split Limit Coverage: In contrast, split limit coverage divides the liability limits into separate amounts for bodily injury and property damage. For instance, a policy might have limits of $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage (25/50/25). This structure can be more restrictive, as it specifies how much can be allocated to each type of claim.
Additional Endorsements Available in Connecticut
In Connecticut, you may also consider the following endorsements for added protection:
Uninsured/Underinsured Motorist Coverage: This coverage protects you if you’re in an accident with a driver who doesn’t have insurance or lacks sufficient coverage to pay for damages.
Rental Reimbursement Coverage: If your car is in the shop due to a covered claim, this endorsement helps cover the cost of renting a vehicle.
Roadside Assistance: This optional coverage provides help if you experience a breakdown, offering services like towing and battery jump-starts.
Gap Insurance: If you owe more on your car loan than your car’s worth, gap insurance covers the difference in case of a total loss.
Get the Right Coverage
Understanding the different types of auto insurance available is essential for making informed decisions about your coverage. To determine the best coverage for your unique situation and protect yourself from potential gaps, contact us today!