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Personal insurance · Coverage explainer

Auto Insurance

Connecticut requires every driver to carry liability and uninsured-motorist coverage. Here is what that actually means, what to add on top of it, and where most policies leave you exposed.

01/ The basicsSection 01 of 05

What it is.

Auto insurance is not one thing. It is a stack of separate coverages bundled into one policy. Each piece pays for a different kind of damage or injury, and each comes with its own limit, deductible, and exclusions.

Connecticut state minimums are 25/50/25 in bodily-injury and property-damage liability, plus matching uninsured-motorist limits. Carriers will happily sell you exactly that. We almost never recommend it. State minimum is barely enough to cover the first ambulance ride after a real accident.

Below is what each layer of an auto policy actually does, why most clients carry more than the law requires, and where the small print usually bites.

Who needs it

Anyone who drives in one of the 11+ states we're licensed in and wants more than the bare-minimum protection the state requires. Coverage examples below use Connecticut limits as a baseline; we'll quote you on your home-state minimums.

02/ CoveragesSection 02 of 05

What it covers.

Each policy is a stack of named coverages. Required parts are mandated by state law. Recommended parts are what we put on most policies. Optional parts depend on your situation.

Required01

Bodily-Injury Liability

Pays the other party's medical bills if you cause an accident. CT minimum is $25,000 per person and $50,000 per accident. We typically recommend at least $100,000 / $300,000 because hospital bills routinely exceed the minimum on a single ambulance ride.

Required02

Property-Damage Liability

Pays for the other vehicle, fence, mailbox, or guardrail if you cause an accident. CT minimum is $25,000. With cars regularly costing more than that today, $50,000 to $100,000 is the safer floor.

Required03

Uninsured / Underinsured Motorist

Pays YOU when the other driver caused the accident and either has no insurance or not enough of it. CT requires this for a reason. About one in eight drivers in the state carries no auto insurance at all.

Recommended04

Collision

Pays for damage to YOUR car when you hit something or something hits you. Includes hit-and-run, hitting a guardrail, backing into your own garage door, and most rollovers. Optional in CT but required by every lender.

Recommended05

Comprehensive

Pays for damage to your car from things that are NOT a collision. Theft, vandalism, fire, hail, falling tree limbs, flood, hitting an animal (deer strikes are a top-five claim type in CT), and most glass damage.

Recommended06

Medical Payments (MedPay) and PIP

Pays the medical bills for you and your passengers regardless of who caused the accident. Useful even if you have health insurance because there is no deductible and it pays first.

Optional07

Rental Reimbursement

Pays for a rental car while yours is in the shop after a covered claim. Usually $30 to $50 a day for up to 30 days. Rarely costs more than $30 to $40 a year to add.

Optional08

Roadside Assistance

Towing, lockout, flat-tire change, jump-start, fuel delivery. Often cheaper to add to your policy than to keep an AAA membership.

Optional09

Gap Insurance

If your car is totaled and you owe more on the loan than the car is worth, gap pays the difference. Critical for new cars in the first three years and for anyone who put little or nothing down at purchase.

Optional10

New Car Replacement

Replaces a totaled new car with a brand-new equivalent instead of the depreciated value. Only available in the first one to three model years, depending on carrier.

03/ In practiceSection 03 of 05

When it kicks in.

Real situations we see in the agency. The point is to show how each layer of coverage maps to actual life, not to scare you.

Scenario 01

Black ice on Route 25

Single-car accident, you slide into a guardrail. Liability does not apply (no other party). Collision pays for your car repair, minus your deductible. Medical bills for you and any passengers run through MedPay or your health insurance.

Scenario 02

Hit by an uninsured driver

Other driver runs a red light, totals your car, and turns out to have no insurance. This is exactly what Uninsured-Motorist is for. It pays your medical bills and your vehicle damage as if the at-fault driver had been insured.

Scenario 03

Catalytic-converter theft overnight

Wake up to find your converter stolen. Comprehensive pays the repair (typically $1,500 to $3,000) minus your Comp deductible. No effect on liability rates because it was not your fault.

Scenario 04

Deer strike on the Merritt

Wildlife collisions are categorized as Comprehensive, not Collision, because the impact is with an animal rather than a vehicle or stationary object. Important distinction because Comp deductibles are usually lower than Collision.

Scenario 05

Backing into your own garage door

Yes, this is covered. Damage to YOUR car runs through Collision. Damage to your own garage door is not covered by your auto policy. That is a homeowners claim if you decide to file one.

04/ GlossarySection 04 of 05

Key terms.

Plain-English definitions. The vocabulary insurance carriers assume you already know.

01Deductible
What you pay out of pocket before insurance pays anything on a claim. Higher deductibles mean lower premiums and vice versa. Most clients in CT run $500 or $1,000 on Collision and $250 to $500 on Comprehensive.
02Premium
What you pay the carrier, usually every six months. Half the year's coverage paid up front.
03Limit
The maximum amount the policy will pay on a single claim. Liability limits are written like 100/300/100, meaning $100,000 per person, $300,000 per accident, $100,000 property damage.
04Actual Cash Value (ACV)
What the carrier says your car is worth at the moment of loss. NOT what you paid for it, and NOT the loan balance. This is why gap insurance exists.
05Stacked Uninsured Motorist
If you have multiple vehicles on the same policy, stacked UM lets you combine the per-vehicle limits on a single claim. Usually a small price difference. Worth asking about.
06Surcharge
A premium increase after an at-fault accident or moving violation, usually applied for three to five years. Some carriers offer accident forgiveness as an add-on.
05/ FAQSection 05 of 05

Common questions.

Questions clients ask before they get on the phone with AJ. If yours isn’t here, just call.

  • Two questions decide it. (1) Is the car financed or leased? If yes, the lender requires Collision and Comprehensive. (2) If you total it tomorrow, can you replace it out of pocket without it being a real hardship? If no, keep both. The phrase "full coverage" is a sales term, not a policy type.

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Independent agencyEst. 2017Fairfield, Connecticut35+ A-rated carriersLicensed in 11+ states