Every state has its own mandatory insurance coverage that is required of their drivers. This mandatory coverage is only a part of the automobile insurance that is available to protect you, your family and other drivers on the road. Here is some basic information to help you in deciding the levels of coverage you may want to include in your auto insurance policy.
There are six major areas of coverage for automobile insurance. The minimum levels of coverage vary from state to state. In general, these areas are: Bodily injury liability, Property damage liability, Personal Injury Protection, Collision, Comprehensive, Uninsured/Underinsured motorist’s coverage.
The Insurance Commissioner in the state of Connecticut requires their drivers to carry bodily injury liability and property damage liability. You must carry this coverage by law. Some states allow you to ensure your financial responsibility through other means but in Connecticut you must purchase coverage through a licensed insurance agent.
You may want to purchase higher levels of insurance. The minimum levels required by law are the highest amount that your insurance company will pay out due to injuries or death to you or any other people involved in an accident, as well as any property damage.
The bodily injury coverage pays for any damages that you may have caused another person if an accident were to occur. This coverage includes medical bills and loss of income. Property damage liability covers the repair and/or replacement of any property that was destroyed as a result of an accident.
If you take out a loan when you are buying a car or if you still owe money on your current vehicle you must carry the proper insurance required by the lender to protect their investment. You cannot let the insurance lapse on a vehicle that is being financed. You will probably be required to carry collision and comprehensive coverage. If you do not provide adequate or proof of insurance, the lender will take matters into their own hands and find insurance coverage for you and bill you for it in addition to your regular car payment.
You should also consider carrying collision and comprehensive coverage on your vehicle. Collision insurance covers any damage to your car that was a result of hitting another vehicle, a tree, a telephone pole, etc. Comprehensive coverage protects the value and replacement of your car in the event that it is damaged as a result of anything other than an accident, for example if your car is stolen, someone breaks into it or there it suffers flood damage.
Uninsured motorist coverage pays for any damages that are a result of an uninsured motorist or a hit and run driver. Underinsured motorist coverage comes into play if the other driver, who is at fault, does not have enough insurance to cover you. However, this coverage is not used to cover damages to your car.
If you aren’t sure exactly what you need to properly cover yourself and your family members, talk to an insurance professional and he or she will guide you through it.