Connecticut has thousands of miles of roadways taking you past charming inns and historic sites. About 3 million drivers use those roads every day. In the span of one year, the average Connecticut driver will travel 8,700 miles. There are bound to be some accidents.
That is why, under current state law, any person seeking to obtain or retain a driver's license or registration in Connecticut must meet financial responsibility requirements. This includes liability coverage and uninsured or underinsured motorist coverage.
Uninsured and underinsured motorist coverage provides financial compensation for bodily injury to the car owner, passengers, or family members living with them if the collision was caused by a hit-and-run driver, an uninsured driver, or a driver whose bodily injury liability limits are lower than the owner's uninsured and underinsured motorist coverage limits.
The minimum financial responsibility requirements for Connecticut are:
- $25,000 bodily injury per person per accident
- $50,000 bodily injury for all persons per accident
- $25,000 property damage liability
- $25,000/$50,000 uninsured/underinsured motorist coverage
According to Insuranks Car Insurance Comparison Guide, the average cost per year for minimum liability insurance in Connecticut is $821.
Is Connecticut a No-Fault State?
The short answer is no. Connecticut used to be a no-fault state until 1994, when this law was repealed through Public Act 93-297.
No-fault automobile insurance is a term commonly used to refer to a type of insurance policy that allows someone to seek compensation for their financial losses from their insurance company irrespective of who caused the loss. This is also known as personal injury protection (PIP) or no-fault first-party benefits.
This, however, is an oversimplified definition. A no-fault insurance policy both provides compensation irrespective of fault and restricts someone's right to sue by imposing a threshold for the severity of the injuries. The threshold can be defined in verbal - which means a description of the injuries - or in monetary terms - which means a certain dollar amount of medical expenses.
According to the Insurance Information Institute, systems that enforce high thresholds can reduce litigation, costs, and delays in paying claims. The verbal thresholds also reduce the propensity to overstate or inflate claims in order to reach a certain dollar amount. But the institute also points out that broad legal interpretations have eroded the efficacy of these verbal thresholds. Furthermore, many doctors and clinics have abused PIP coverage by billing for unnecessary medical services.
As previously mentioned, before the first of January 1994, Connecticut was a no-fault state and required its drivers to buy basic reparations coverage benefits in the amount of $5,000, which was meant to cover medical expenses and lost wages resulting from a car accident regardless of whose fault it was. In exchange, this system restricted the victim's right to sue the at-fault party.
The victim could sue only under the following conditions:
- They incurred medical expenses totaling more than $400
- Their injuries are permanent
- They fractured a bone
- They suffered serious and permanent disfigurement
- They suffered an irreversible loss of bodily function
- Lost a body member
- Died
The Insurance Information Institute describes Connecticut's no-fault insurance law as having been relatively ineffective because of the low monetary threshold. After the law was repealed through the Public Act 93-297 of 1994, basic reparations coverage or PIP was no longer mandatory, and the victim of an accident could seek compensation from the at-fault party and, if needed, initiate lawsuits to determine fault and damages.
Insurance providers still offer basic reparations or medical payments as a supplement to the mandatory car insurance policy.
Mandatory Insurance Requirements in Connecticut
According to Connecticut legislation CGS ยงยง 38a-334 to 38a-343, any owner of a private passenger motor vehicle that must be registered in the state is required to have and maintain financial responsibility throughout the duration of the registration period.
If the vehicle does not have to be registered in Connecticut, they must maintain financial responsibility throughout the period in which they use the vehicle in Connecticut.
This financial responsibility required by law can be provided by purchasing an insurance policy or through self-insurance.
Most people purchase an insurance policy above the minimum requirements. The cost can differ based on several factors, including the driver's age and years of experience. You can use online tools to compare car insurance costs. For example, according to Insuranks.com, the average cost per year for a 30-year-old driver is $2000, and this rate drops to $1900 for 40-year-old drivers. If the vehicle is registered in another state, the insurance policy can be purchased by an insurance provider licensed either in Connecticut or in the state where the vehicle was registered.
Alternatively, the vehicle owner can get the insurance commissioner's approval to self-insure. To get approval, they must show that they have sufficient and reliable financial arrangements to cover the payment obligation required by Connecticut law which is equivalent to that provided by a car insurance policy.
As previously mentioned, car insurance policies in Connecticut have to provide uninsured and underinsured motorist coverage. The coverage must be at least $25,000 for injury or death of one person and $50,000 if multiple people were injured in the accident. The insurance provider must offer the vehicle owner up to double the limit of the bodily injury liability policy they purchased.
If the vehicle owner chooses to buy uninsured and underinsured motorist coverage that is less than the liability coverage, they have to sign an informed consent form stating that by choosing a reduced premium, they are aware that they're also opting out of some important types of coverage.
Connecticut law prohibits stacking benefits. This means that if a person owns multiple vehicles covered by separate policies or has a policy covering multiple vehicles, they cannot add together the liability limit for uninsured and underinsured motorist coverage.
In the event that a person with uninsured and underinsured motorist coverage gets injured while in a vehicle they do not own, and that vehicle is insured with a policy with the same coverage, then that vehicle's policy will be considered primary coverage and the person's insurance is considered secondary coverage. All other applicable insurance policies will be considered excess coverage.