Every state requires their registered drivers to carry the appropriate amounts of liability insurance. These levels of coverage are determined by the insurance commissioner and are mandatory. There are six major areas of coverage for automobile insurance but not all are mandatory.
If you are a licensed driver in the state of Connecticut you must carry the following insurance coverage on your vehicle: Bodily Injury Protection and Property Damage.
Bodily injury liability covers the injuries or death of a person if you are responsible for an accident. Property damage liability covers the repair and/or replacement of another person’s property that was damaged or destroyed as a result of an accident that you were responsible for.
The minimum amounts are the highest level that your insurance company will pay out for each level of coverage. For bodily injury, you are required to carry $20,000 coverage for injuries of death of one person in an accident; $40,000 for injuries or death of more than one person in an accident; and $10,000 in property damage for an accident.
Personal injury protection or PIP, is coverage that although not mandatory, you should seriously consider including in your policy. It covers medical expenses for you, all relatives who live in your home, drivers who are authorized to drive your car, you and your family members if you are injured while in someone else’s car, and if you are a pedestrian hit by a vehicle.
These are only the minimums required by your state. You may want to add additional coverage to further protect yourself and your family. One addition you might want to make is collision coverage. If you still owe money on your vehicle, your lender will require you to carry collision coverage to protect their investment.
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 it suffers flood damage.
Uninsured or under-insured motorist coverage protects you if you get hit by someone who does not have any insurance coverage or not enough coverage to pay the required expenses. Uninsured motorist coverage also covers you if you are the victim of a hit and run accident.
The more coverage you have the more your insurance premiums will be, depending on the deductibles you choose. But it may be in your best interest to pay the money now even though you may not need it rather than not have coverage if you do need it.