How much car insurance coverage should I buy?
When you’re applying for auto insurance coverage, you will come across coverage options. Generally, the more coverage you secure, the higher the premium – which can impact many motorists’ decision making. However, the amount of coverage you need may not be the cheapest but it also may not be the most expensive. For auto insurance, it’s wise to consider how much coverage you should have before you look at premiums – auto insurance is cheaper than you may think!
Connecticut Minimum Insurance Requirements
Connecticut state law requires you to carry a minimum amount of car insurance. Failure to do so can result in severe penalties that may include monetary fines and even jail time. The bare minimum car insurance requirement for Connecticut drivers is:
- $20,000 bodily injury per person per accident
- $40,000 bodily injury for all persons per accident
- $10,000 property damage liability
- $20,000/$40,000 uninsured/underinsured motorist coverage
Currently, Connecticut doesn’t require you to carry additional coverage such as personal liability, collision or comprehensive. However, depending on your individual situation, you may choose to purchase such valuable protection.
How Much Auto Insurance Do I Need?
Minimum coverage isn’t necessarily all you should have. If you’re involved in a serious car accident, you could find that the minimum coverage doesn’t last long. For example, $10,000 for car repairs isn’t a lot considering that the average car costs a little more than $20,000.
You should make sure that you have plenty of coverage against uninsured and underinsured drivers. Although you may have car insurance, other drivers may not. If you are involved in an accident where the at-fault driver doesn’t carry any or very little insurance, your policy can help to pick up the pieces.
Collision and comprehensive insurance are worth having if you would want to repair or replace your vehicle after an accident. These policies have a deductible (what you pay before coverage kicks in), and they pay out based on the current value of your vehicle. If you have an older car that is only worth $1,000, taking out sizeable coverage on this could be wasteful.