Auto Insurance Policies-A Guide to Coverage

Donovan & Morello, LLP April 15, 2024

Compulsory insurance is the minimum amount of coverage required by state law. The three compulsory coverages are:

Bodily Injury Liability protects you, your household members and others operating your car with permission against legal liability for the accidental injury or death of others. Liability coverage is essential because it protects you as a driver in the event that you cause bodily injury or property damage to others.

Uninsured/Underinsured Motorist provides coverage for bodily injuries sustained by you, your household members and anyone operating your car with permission, in the event of an accident caused by a driver who has limited or no insurance of their own.

Property Damage Liability pays for damage to another person's property when an accident is caused by you, a household member or another person operating your car with permission. property damage liability covers property damage associated with striking other cars, buildings, fences, etc.

Connecticut Minimum Auto Insurance Coverage Limit Requirements

Insurance limits are simply the maximum amount that an auto insurer will pay to cover a claim. Each state determines its own coverage limits which can be increased for an added premium. These limits are usually split into three categories. In Connecticut, the minimum is listed as 25/50/25 reflecting bodily injury per person, bodily injury per accident, and property damage, which we break down further below. For liability insurance, your limits are as follows:

$25,000 Bodily Injury Liability Coverage Per Person

This coverage helps to pay for bodily injury for one person who is injured . .

$50,000 Bodily Injury Liability Per Accident

This coverage will pay for bodily injury for more than one person injured in a single accident. For example, if you rear-end a vehicle and both the driver and passenger are injured, this coverage will pay up to $50,000 for their injuries.

$25,000 Property Damage

Most vehicle accidents cause some amount of property damage, whether it's to other vehicles on the road, real estate, or another person's belongings. This coverage pays for these damages.

Uninsured / Underinsured Motorist

Connecticut requires that the policy limit of your uninsured/underinsured motorist coverage be equal to the liability policy limits, unless you request lower limits. More than 10% of the drivers on CT roads are uninsured, and many are underinsured. This coverage helps to protect yourself and your passengers in case of an accident with an uninsured/underinsured driver, or a hit-and-run situation.

Although these are the minimum limits required by connecticut law, this does not mean that these minimum limits fully protect you and your assets. It is highly recommended that you purchase higher limits for you own protection.

Optional Coverages

Collision pays for any direct and accidental damage to your car if the accident is a collision between your car and another physical object (like another car but not an animal).

Comprehensive pays for damage to your car caused by events such as fire, theft, vandalism and impact with animals or birds; in other words, damage caused by something other than a collision.

Medical Payments pays for reasonable expenses for necessary medical and funeral services incurred by you and your members who live with you as a result of a motor vehicle accident, up to the coverage limits you select. This coverage pays regardless of who is at fault.

Substitute Transportation (sometimes also known as "Rental Reimbursement") pays for temporary transportation expenses if you have a claim that is covered under Comprehensive or Collision coverage. Reimbursement amounts are subject to the per-day-limit and number of days limit.

Towing and Labor pays the cost of towing your car to a repair shop when it is disabled and covers up to the limits you have selected per disablement.