You have car insurance, and you always pay your premium. You may have opted for full coverage, but the truth is that many other people do not. There are many reasons why drivers seek out the lowest premiums possible by obtaining only the minimum amount of coverage. Whatever the reason, those drivers could leave you at financial risk if they cause your crash.
Your insurance company will pay for property damages and medical costs related to a crash you cause. In the event that another driver causes a crash, that party’s insurance will end up paying for those expenses. If the other driver does not have enough insurance to cover the losses you suffer in a crash, you could end up stuck with the difference.
Minimum insurance coverage doesn’t cover much
Like every other state, Connecticut requires that everyone who operates a motor vehicle carry liability insurance. These policies protect the carriers against any kind of injury or property damage they may cause, up to certain limits. The state of Connecticut requires a minimum amount of $10,000 in property damage coverage, as well as $20,000 in medical coverage for one injured person and $40,000 for multiple injured parties in a crash.
Those amounts may seem like enough to cover the costs associated with a collision. However, many vehicles that are newer may cost more than $10,000 to repair or replace. Vehicles that have special modifications for the disabled may also cost much more than that. Classics and specialty vehicles can also exceed that minimum coverage.
As for the minimum possible medical coverage, it’s easy to see how that could fail to pay for all the costs in a major accident. Emergency transportation, trauma care, surgery, in-patient hospital care and physical therapy can very quickly add up to much more than $20,000. You might have to consider a personal injury lawsuit in order to recover your losses after a crash with an underinsured driver.
Review your insurance policy and coverage
It’s always a good idea to make an annual practice of reviewing your insurance coverage. Typically, you will have to agree to a new policy at least annually, which usually makes that the perfect time to add or reduce coverage.
However, in the case of uninsured/underinsured driver coverage, it may be a good idea to check before your next renewal date. Knowing your policy also helps ensure that you know what your insurance company should cover for you in the event of a crash.
For those who don’t currently have a policy or rider that offers protection in crashes caused by drivers with no insurance or only the state minimum coverage, adding it may be a smart move. In the event of a collision with a driver who doesn’t have adequate insurance, you will be able to rely on your insurance company to close the gap.