What Is Auto Insurance?
Auto insurance is one of the most frequently used types of personal insurance and is required in Connecticut in order to drive legally. Connecticut law (C.S.G. 14-112) requires:
- $25,000 in coverage per person per accident for bodily injury liability*
- $50,000 in coverage per accident for bodily injury liability*
- $25,000 in coverage per accident for property damage liability*
- Uninsured/Underinsured Motorist coverage of at least $25,000 per person/$50,000 per accident (see Conn. Gen. Stat. Section 38a-336 or Bulletin PC-86 for additional information)
- Insurance companies to notify the Department of Motor Vehicles (DMV) of canceled policies
*(Drivers are strongly urged to consider higher limits).
The two types of auto insurance are:
- Liability Insurance
- Bodily injury liability protects you against the claims of others hurt in an accident for which you were at fault. Their claims may include medical expenses, lost wages and pain and suffering.
- Property damage liability insurance pays for damage you cause to the property of others. This includes damages to vehicles and other property such as walls, fences and equipment.
- Property Damage
- Collision coverage pays for physical damage to your car as the result of your auto colliding with an object. This coverage is not required by law, but may be required by a lending institution or leasing company.
- Comprehensive coverage pays for damage to your auto from almost all other causes, including fire, severe weather, vandalism, floods and theft. It is not required by law.