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Automobile Insurance in Connecticut

Connecticut requires that drivers carry $20,000 per person and $40,000 per accident for bodily injury liability and $10,000 per accident for property damage liability, but drivers are strongly urged to consider higher limits. Insurance companies are required to notify the Department of Motor Vehicles (DMV) whenever insurance coverage is "cancelled,".

Mandatory Uninsured and Underinsured Motorist Coverage

Each automobile insurance policy must provide “uninsured and underinsured motorist coverage” for the protection of people insured under the policy who are legally entitled to recover damages because of bodily injury, including death, from owners or operators of (1) uninsured and underinsured motor vehicles and (2) insured motor vehicles, the insurer of which becomes insolvent before paying damages. For the purposes of this law, an “underinsured motor vehicle” is a motor vehicle for which the total of liability limits under all bodily injury liability bonds and insurance policies in effect at the time of the accident is less than the applicable liability limits under the uninsured motorist portion of the policy against which a claim is made.

By law, an insurer does not have to provide uninsured and underinsured motorist coverage to:

1. a named insured or relatives residing in his or her household when occupying, or struck as a pedestrian by, an uninsured or underinsured motor vehicle or a motorcycle that is owned by the named insured or

2. any insured person occupying an uninsured or underinsured motor vehicle or motorcycle that he or she owns.

Uninsured and underinsured motorist coverage covers bodily injury to the vehicle owner (“owner”), relatives living with the owner, and passengers injured in an accident caused by (1) an uninsured motorist, (2) a motorist whose bodily injury liability limits are less than the owner's uninsured and underinsured motorist coverage limits, or (3) a hit-and-run driver. The standard coverage is an amount equal to a policy's bodily injury liability coverage, but an owner may purchase additional coverage up to double the bodily injury liability. The law requires a minimum amount of $ 20,000 per person and $ 40,000 per accident.

A person purchasing uninsured and underinsured motorist coverage amounts that are less than the policy's liability coverage amounts must sign an informed consent form that contains:

1. an explanation of uninsured and underinsured motorist insurance that the insurance commissioner approved;

2. a list of uninsured and underinsured motorist coverage options available from the insurer;

3. the premium cost for each of the coverage options; and

4. a statement in 12-point type that states:

When you sign this form, you are choosing a reduced premium, but you are also choosing not to purchase certain valuable coverage which protects you and your family. If you are uncertain about how this decision will affect you, you should get advice from your insurance agent or another qualified adviser.

A person's selection of uninsured and underinsured motorist coverage applies to all subsequent coverage renewals and to all policies or endorsements that extend, change, supersede, or replace an existing policy issued to the named insured, unless a named insured changes the selection in writing. Under current state law, anyone who wants to receive or retain a driver's license or motor vehicle registration in Connecticut must provide and continuously maintain a minimum amount of financial security (e. g. , insurance), including liability coverage and uninsured and underinsured motorist coverage.

Under Connecticut law, the owner of a private passenger motor vehicle required to be registered in the state must provide and continuously maintain throughout the registration period financial security.

Private Passenger Motor Vehicle Defined for Insurance Purposes

Under the motor vehicle insurance law, “private passenger motor vehicle” excludes a motorcycle or motor vehicle used as a public or livery conveyance. But it includes a:

1. private passenger-type automobile;

2. station wagon-type automobile;

3. camper-type motor vehicle;

4. high-mileage-type motor vehicle;

5. truck-type motor vehicle with a load capacity of 1,500 pounds or less, registered as a passenger motor vehicle or passenger and commercial (combination) motor vehicle, or used for farming purposes; and

6. vehicle with a commercial registration.

Insurance or Self-Insurance

The financial security the law requires may be provided through an insurance policy or self-insurance. Specifically, a person may satisfy the financial security requirement by purchasing an insurance policy complying with state law and issued by or on behalf of an insurer licensed to transact business in the state. If the vehicle is registered in another state, the policy must be issued by or on behalf of an insurer licensed in either this state or the state in which the vehicle is registered.

Alternatively, a person may self-insure, subject to the insurance commissioner's approval. To seek the commissioner's approval, a vehicle owner must provide the commissioner evidence:

1. of his or her, or other appropriate person's, continuing undertaking to perform all obligations imposed by the law;

2. that appropriate provision exists for the prompt and efficient administration of all claims, benefits, and obligations provided under the law; and

3. that reliable financial arrangements, deposits, or commitments exist providing assurance for payment of all obligations the law imposes substantially equivalent to those afforded under an insurance policy complying with the law.

Stacking Policies Prohibited. The law prohibits the “stacking” of benefits when a policy covers two or more vehicles or a person owns two or more vehicles covered under separate policies. Regardless of the number of policies issued, vehicles or premiums shown on a policy, premiums paid, people covered, vehicles involved in an accident, or claims made, the limit of liability for uninsured and underinsured motorist coverage that applies to two or more motor vehicles covered under the same or separate policies are prohibited from being added together to determine the liability coverage limit available to people injured in an accident.

Total Amount of Recovery. By law, an insurance company must pay up to the limits of the policy's uninsured and underinsured motorist coverage after the liability coverage limits under all bodily injury liability bonds or insurance policies applicable at the time of the accident have been exhausted. The total amount of recovery from all policies, including any amount recovered under the insured's uninsured and underinsured motorist coverage, cannot exceed the limits of the insured's uninsured and underinsured motorist coverage. The law prohibits a reduction of uninsured or underinsured motorist coverage for amounts received by the insured for Social Security disability benefits paid or payable. This limitation on the total amount of recovery from all policies does not apply to underinsured motorist conversion coverage.

Failing to Maintain Insurance
The owner of a private passenger motor vehicle required to be registered in Connecticut who operates it or permits it to be operated without maintaining the insurance required by law is guilty of a class C misdemeanor (a fine of up to $ 500, imprisonment up to three months, or both).

Failing to Carry Proof of Insurance or Registration
A vehicle owner must carry a vehicle's automobile insurance identification card and registration in the vehicle at all times. The first offense is an infraction subject to a $ 35 fine. A subsequent offense is subject to a fine up to $ 50. Because a subsequent offense is not an infraction, a court appearance is required.

Note: State Car Insurance regulations can change. Please check with your state's Motor Vehicle Department for the most current regulations.