Liability Or Full Coverage On Your Connecticut Car

Liability coverage or full coverage on your car? It’s not such an easy decision if your vehicle is more than seven years old. Connecticut car insurance companies will reduce the rate (sometimes substantially) if you remove the collision and comprehensive coverages from your auto policy. We’ll take the time to review your options and help you decide which coverage and carrier is best for your specific situation.

Liability

Connecticut has financial responsibility requirements regarding the minimum amount of liability coverage required to drive your vehicle (specifically discussed on this website). This type of coverage is the insurance that pays for damage you cause to other vehicles and property. It also pays for injuries to other persons that you may have harmed.
Liability coverage will not pay for any damage to your own car. So whether you have a “fender bender” that results in only a few hundred dollars of damage, or a major accident that totals your car, ultimately, you will not receive any type of settlement from the insurance company. If there is a bank loan on the vehicle, you will not be able to have “liability only” coverage on your car.

Full Coverage

Full coverage consists of two basic components- Collision and Comprehensive coverages.
Collision coverage pays for damages to your own vehicle as a result of you hitting another car, or another car hitting you. Also included would be damage to your car if you hit another object or roll over.

Comprehensive coverage typically includes damage to your vehicle that was not caused by a collision with another vehicle. Some of the most common comprehensive coverages include vandalism, loss or damage resulting from theft, fire, falling objects, storms and other (but not all) natural disasters. Towing fees and rental charges are also sometimes covered by comprehensive claims. You can also purchase comprehensive coverage without collision coverage.

If you are financing your car in Connecticut or have obtained a bank loan, you are required to keep collision and comprehensive coverages until the loan is paid off. If you do not agree to add these coverages to your policy, you will not be able to qualify for the loan. If your existing insurance were to lapse while the car is being financed, the lending institution will place their own coverage on the car…often at an extremely high rate.

When Should You Take Full Coverage Off Your Car?

Each customer’s situation is different and we’ll closely examine your specific rates and vehicle information to determine what’s best for you. Typically, when the combination of your collision and comprehensive premiums exceeds 15% of your total rate, it may be the appropriate time to consider dropping the collision and possibly the comprehensive coverage as well. But you must be willing to accept that if you have an at-fault accident, and your car is totaled, you won’t have any coverage…or car.

Econnecticutinsurance is the state’s trusted authority for affordable car insurance. Please call us today or request a free quote at the top of the page.