Connecticut Car Insurance Guide

There are more than 2.6 million licensed drivers in Connecticut, and many of them are driving around without car insurance. If one of them causes an accident, you could be stuck with some big bills. Or if you cause an accident, you could be sued.

Here’s how to put together a policy to keep yourself covered and avoid costly out-of-pocket expenses.

Required Minimum Connecticut Auto Insurance

Connecticut requires only liability car insurance, which pays others for damage and injuries you cause. It also covers your legal defense if you’re sued for damages caused in a car accident.

Car owners in Connecticut must buy liability coverage with at least:

• $25,000 for bodily injury to one person
• $50,000 for bodily injury to multiple people in one accident
• $25,000 for damage to property in one accident

Connecticut’s minimum liability coverage is inadequate. Your best strategy for buying liability insurance is to protect your net worth in case you’re sued. If you have savings and other assets (like a house) that you could lose in a lawsuit, it makes sense to purchase higher liability limits. It’s better to have your car insurance company settle your lawsuits, not you.

What Else Should I Have?

Uninsured motorist coverage. What happens if someone who doesn’t carry insurance crashes into you? If you have uninsured motorist coverage(UM), you can file a claim to cover your medical expenses. Without it, you may have to file a lawsuit against the other driver.

If you don’t want to purchase UM in Connecticut, you must reject it in writing. But generally this is a good coverage to have.

>Underinsured motorist coverage (UIM). What happens when you get into a car accident with a driver who has car insurance, but their coverage is insufficient? UIM coverage kicks in to cover your medical expenses when the other driver’s insurance runs out. Like UM, this is a good coverage to have.

Connecticut also has an interesting UIM wrinkle called “underinsured motorist conversion coverage.” Basically, this optional coverage ensures that your UIM is not reduced by payments from any other source, including the other driver’s liability insurance.

For example, let’s say you have $300,000 in UM/UIM coverage and you have $400,000 in medical bills. The at-fault driver’s liability limits are $200,000. Without UIM conversion coverage, you would only be able to collect $200,000 from the other driver’s insurance and $100,000 from your own coverage, which leaves you $100,000 short. With conversion coverage, you can collect $200,000 from the other driver plus the other $200,000 from your own UIM coverage.

Collision and comprehensive insurance. Got into a car accident? Car stolen? Car damaged in a flood? Hit a deer on a winding country road? These are just a handful of scenarios covered by collision and comprehensive coverage, not to mention problems vandalism, fire, explosions, riots, hail and falling objects.

These are optional coverages, and generally recommended. If you have a car loan or lease, your lender or leasing company will most likely require them.

Medical payments (MedPay) coverage. This optional coverage pays for medical expenses, lost wages and funeral expenses if you or a relative living with you are killed or injured in a car accident.

Putting It All Together

Can I Show My Insurance ID Card from My Phone?

In Connecticut you can show an auto insurance ID card from your phone. Check with your car insurance company to see if it offers a mobile app that includes access to electronic insurance ID cards.

Average Connecticut Auto Insurance Premiums

Connecticut drivers pay an average of $1,086 a year for auto insurance. Here’s a look at average Connecticut premiums for common coverage types.

Factors Allowed in Connecticut Auto Insurance Rates

Auto insurance companies usually use driving records, past claims, vehicle model and more when setting rates. In Connecticut, companies can also use these factors.

How Many Uninsured Drivers are in Connecticut?

About 9% of Connecticut drivers have no car insurance, according to the Insurance Research Council.

If a driver with no insurance crashes into you and causes injuries, you could take your chances with a lawsuit to pay for medical expenses. If you have UM coverage, you could file a claim to cover your expenses.

Penalties for Driving Without Auto Insurance

If you get caught driving without insurance in Connecticut, you’re looking at a fine ranging from$100 to $1,000. Your vehicle registration and license will be suspended for one month for the first conviction. If you get caught again, your license and registration will be suspended for six months.

When Can a Vehicle Be Totaled?

In Connecticut, if the cost of repair is more than the value of the vehicle, it can be declared a total loss. Car insurance companies must use at least the average of the car’s retail value from NADA or another industry source (approved by the state insurance commissioner) and one other automobile industry source that has been approved.

Solving Insurance Problems

The Connecticut Insurance Department is in charge of monitoring car insurance companies and taking consumer complaints. If you have an unresolved dispute, you can contact the division to file a complaint.