What is Automobile Liability Insurance?
The State of Connecticut requires all motor vehicle drivers to be insured by an automobile liability policy. But what is liability insurance?
Automobile liability insurance is a type of insurance that provides coverage for bodily injury and property damage claims when an insured driver is at fault for causing a motor vehicle collision. In exchange for regular premiums paid by the insured, an insurance company issues a policy of insurance to the insured agreeing to provide insurance coverage to the insured and to issue payment for bodily injury and property damage claims made against the policy.
Who and what is covered by auto liability insurance
Each auto liability policy provides insurance for the covered owner and operator of the at-fault vehicle for claims up to a certain amount of monetary damage. Who an “insured” is under the terms of an insurance policy is dependent upon the policy provisions, including various exclusions and limitations. The “limits” of an insurance policy are the maximum amounts of money that the insurance company is contractually obligated to pay for claims or judgments against the policy. For this reason, in most cases, insurance companies will not voluntarily offer to pay for claims in excess of the policy limits.
In general, if an injured party is awarded monetary damages in excess of the liability policy limits, the insured individual would be exposed to pay out-of-pocket the amount of the judgment that exceeds their policy limits. There are several important legal and practical exceptions to this general rule, and the limits of insurance should always be discussed with your attorney.
Car insurance requirements in Connecticut
Connecticut law requires the owner and driver of a motor vehicle to be insured with minimum liability limits of $25,000 per person / $50,000 per occurrence for bodily injury, and $25,000 per occurrence for property damage (Conn. Gen. Stat. § 14-112).
If your bodily injury policy limit is $25,000 per person, this means the maximum amount the insurance company is required to pay to an individual claimant (i.e., an injured party) in compensation for injuries, medical bills, lost wages, and physical pain and suffering is $25,000. If your bodily injury policy limit is $50,000 per occurrence, this means the maximum amount the insurance company is required to pay collectively to all claimants injured in a single collision, regardless of how many claimants exist, is $50,000.
Likewise, for property damage, a limit of $25,000 per occurrence means the maximum amount that the insurance company is required to pay to repair or replace other parties’ property that sustained damage as a result of a single collision is $25,000.
If you sustained bodily injuries as a result of a motor vehicle collision, contact Walsh Woodard LLC today at 860-549-8440 to schedule a free consultation.