Auto Insurance Liability: A Complete Overview

Connecticut drivers are required to purchase some form of insurance coverage in order to legally drive in the state. Auto insurance is among the most regularly utilized types of personal insurance, justifying the purchase of auto insurance as an essential factor to drive on the Connecticut roadways and highways.

Liability insurance is one of the two primary elements of auto insurance coverage. Unfortunately, in the event of a car accident, one out of every seven at-fault drivers on the road is uninsured. According to the Insurance Research Council, 14 percent of motor vehicle collisions in the United States are caused by uninsured motorists.

When a collision occurs, the last thing the driver wants to deal with is a struggle to recover funds from the at-fault driver. If you or a loved one has been involved in a motor vehicle crash, an auto insurance liability lawyer of Jonathan Perkins Injury Lawyers is here to help. Jonathan Perkins Injury Lawyers is dedicated to fighting for the rights of the injured.

Liability Insurance Overview in Connecticut

Auto insurance coverage is broken into two main components: liability, and property damage. The Department of Motor Vehicles (DMV), requires car owners to maintain insurance coverage to prove that they are financially capable of handling potential costs associated with an accident. In Connecticut, the state requires drivers to carry property damage and bodily injury liability insurance:

• Property damage liability insurance: This portion covers any costs associated with damages to any of the vehicles that were struck during the accident. In addition, coverage extends to other property such as walls, gates, fences and other equipment.
• Bodily injury liability insurance: This portion covers any medical bills, pain and suffering costs and lost wages, protecting you from the claims of injured parties involved in a collision at which you are at fault.

Some states require a third element: uninsured motorists coverage. This type of liability insurance coverage protects you from hit-and-run drivers or those who do not have auto insurance. If you have experienced problems with your insurance company following a crash, you may need to guidance from an auto insurance liability lawyer.

Connecticut’s Auto Insurance Liability Laws

Each state varies slightly in regard to the specific requirements of auto insurance liability coverage. In order to meet the terms of the mandatory requirements, Connecticut drivers must maintain a minimum amount of monetary coverage. While the majority of insurance professionals would recommend much more than the required amount of protection, the following are the minimum required coverage by Connecticut:

• $40,000 in bodily injury coverage, this relates to the injuries or deaths befalling to more than one person in a collision
• $20,000 in bodily coverage when injuries or death occurs to one person in the crash
• $10,000 in property damage coverage

Maintaining this level of insurance coverage is critical to ensuring protection in the event of an accident. Drivers must show proof of insurance in the form of an insurance identification card, as well as a policy’s declaration page.

Insurance Coverage Terms to Understand

Being an educated consumer is always important, but this is especially true when dealing with auto insurance companies. The adjuster may be friendly and seem helpful, but it is essential that you remember that they are in the business of representing the company that they work for and paying you as little as possible, so be cautious when speaking to them. In order to help understand what you are being asked, here are some of the most frequently used terms that an adjuster may use.

• $25/50/15: When you purchased your liability coverage you selected specific liability limits. These applied to per-person bodily injury, bodily injury for everybody who might be injured in a single accident, and property damage. In most states there is a minimum liability amount that you must choose, and then you have the opportunity to purchase more coverage.

• Automobile liability insurance: This is an important type of policy that provides you with protection in case you are deemed responsible for injuries or damage to property as a result of a car accident.

• Bodily injury liability insurance: The component of automobile liability insurance that pays for bodily injuries to other people.

• Collision coverage: A type of auto insurance that provides coverage when your vehicle is damaged as a result of a collision with another object or another type of hazard that causes damage to your vehicle. This coverage is only for your car, and does not provide insurance for what you hit.

• Comprehensive coverage: This is non-collision related insurance for damage to your car, or if your car is stolen. This coverage includes damage such as broken windows or windshields, damage from fire or weather, vandalism, damage from an animal, falling objects or the like.
• Declarations page: This is the first page of your insurance policy and contains all of the pertinent information about you and what is covered, as well as the amount of coverage and the duration of the policy. It also contains premium information.

• Deductible: This is the amount that your policy makes you pay out of pocket – everything over the deductible is what the insurance company pays. The higher the deductible you choose, the lower your insurance premium.

• Economic benefits: These are the out-of-pocket expenses that your insurance may provide. It can include medical and rehabilitation expenses, as well as the costs of essential services and lost wages.

• Financial responsibility law: The law that requires that you carry auto insurance in order to pay for losses to others that result from the operation of a motor vehicle and that are your fault.

• Full glass coverage: with no deductible, this covers any damage to vehicle safety glass
• Medical payments coverage: Insurance policy that pays doctors, hospitals and funeral expenses for you and/or passengers in your car up to the limits of the policy. Coverage is not dependent upon fault.

• Monetary threshold: In states that have “no-fault” laws, the monetary threshold is the monetary figure that medical and rehab expenses must reach in order for a lawsuit for non-economic damages (such as pain and suffering) to be filed.

• Property Damage Liability: Insurance that covers damage done to someone else’s property by your vehicle. This is most frequently another vehicle, but can be a building, a lawn, a fence, etc.

• Rate: The cost of your insurance.

• Third Party: A third party is someone other than the policyholder, their family members, or the insurance company.

• Threshold: The monetary point after which an injured person can file a lawsuit to recover damages for bodily injury from the person responsible for the accident.

• Tort: An act that causes damage or injury that a civil lawsuit can be based upon.

• Uninsured/Underinsured Motorist Coverage: Insurance that provides coverage for the driver or passengers in cases when the at-fault driver is either uninsured or underinsured. It also covers expenses incurred in a hit-and-run accident.

An auto insurance liability lawyer will help to guide you through your case if an accident occurs. However, having a foundation of knowledge about insurance coverage is advantageous for any Connecticut driver.

Factors Determining Auto Insurance Premiums

Each insurance company establishes their own prices for auto insurance premiums. These premiums are influenced by quite a number of factors that determine the likelihood that you are in safe driving conditions. The following are the principal factors that insurance companies account for when establishing auto insurance premium rates:

• Type of vehicle
• Driving record
• Credit history
• Safety and anti-theft devices
• Geographic location
• Weather
• Crime rate
• Your policy’s deductible amount

While this is not an exhaustive list, the above denote the main elements that an insurance company will review when determining the cost of your premiums. Maintaining a safe driving record is always beneficial to drivers seeking auto insurance coverage.

Talk to a Lawyer to Get a Better Understanding of Your Auto Insurance

Jonathan Perkins Injury Lawyers share a passion for representing the injured and guiding them through the legal process. We dedicate the same level of attention to detail and care to each and every client. An auto insurance liability lawyer is prepared to take on your case today. Complete a Free Case Evaluation to learn more. You can also call us or send our office an email.