Auto Insurance may include six types of coverage depending on policy-specific declarations.
This varies depending on where you live and in some states; the law may require coverage while other coverage items are optional.
Besides protecting you financially, car insurance is a social responsibility.
Driving without insurance or the ability to pay for the damages you cause in an accident puts others at financial risk.
Most states require automobile owners to prove they have the financial ability to cover liability costs if they should cause an accident. These states require they do so by either posting a bond or by carrying auto insurance.
Do not stop at the State Minimum
In the state of CT, the minimum limits are $25,000 per person and $50,000 per accident for bodily injury liability, and $25,000 for personal property as of 1/1/2018.
If you cause damage to someone’s home or property over $25,000, you are responsible for the difference.
The same goes for if you injure someone and their cost of treatment and rehabilitation costs over the state limits you are responsible for the excess not covered by insurance.
By only carrying the state minimum you are potentially running the risk of accepting being 100% responsible for any amount not covered by your insurance policy.
This also places your other assets and future earnings at risk from civil judgment.
If you cause severe injury to someone or destroy a person’s property in excess of your coverage you can liable and that liability can add up.
To find out how to obtain coverage specific to your situation please contact us today.
We have provided the basic types of car insurance coverage options below with a brief overview.
Coverage Available
- Collision Coverage – This basic insurance type covers your vehicle if you collide, or drive into, something.
This typically covers collisions with other cars as well as if you were to run into a wall, barrier, or bridge, or other items not excluded by your policy. - Comprehensive Coverage – This coverage covers anything that may happen to your car that is not directly related to a collision.
This may include other perils such as theft, fire, hitting a deer, or vandalism. - Liability Coverage – This coverage covers the damages when you are the at-fault party in an accident and you damage someone else’s car or property.
The Law in the state of Connecticut mandates liability coverage, it is important that you as the driver make certain you have an adequate amount of coverage. - Medical Payments – Also called “MedPay” or “PIP” in some states. This coverage may pay for any injuries to the driver or passengers that occur if an accident occurred while you as the policyholder or your authorized driver was driving.
Now that you understand a bit more about the different types of auto insurance available, you are probably ready to find the right coverage for you.