Protect Yourself And Others With Adequate Auto Insurance

Introduction
You are no doubt aware that Connecticut law requires that all motor vehicle operators in the State of Connecticut carry automobile insurance. This law is intended to protect those who are injured in motor vehicle accidents as well as those who cause those injuries. You may not, however, be aware that in 1994 Connecticut enacted sweeping reforms in the laws governing automobile insurance. It has now been several years since the new laws took effect and it may be time to reexamine your automobile policy to insure that you have adequate protection. Doing so will protect not only yourself and your family, but also other persons who may be injured in automobile accidents.

Relevant Coverages
The two principal mandatory coverages which protect those injured in automobile accidents are: 1) bodily injury or liability coverage; and 2) uninsured/underinsured motorist coverage.

1. Bodily Injury or Liability ("BI") Coverage. BI coverage serves two purposes. First, it protects your personal assets up to the stated amount from claims made by someone whom you injure. Second, and closely related to the first, it provides you with limited funds to pay the claim of a person injured by you. BI coverage provides an injured person with compensation for various elements of damages including but not limited to past and future medical bills, lost wages, loss of earning capacity, permanent disability, scarring and disfigurement and pain and suffering. The minimum requirement in Connecticut for BI coverage remains at the low level of $20,000 per person and $40,000 per accident no matter how many people are injured in one accident.
   
   

   BI coverage may be purchased in various amounts at either split limits (per person/per accident) or combined single limits (one limit for one victim or all victims) depending on the insurance company. The limits commonly available range from the minimum of $20,000/$40,000 to common increments of higher limits such as $100,000/$300,000 and $250,000/$500,000. Combined single limit policies are commonly sold with $300,000 or $500,000 as the single limit. Additional bodily injury coverage should be and is frequently purchased as umbrella coverage in increments of $1,000,000. Anyone who owns their own home should have umbrella coverage.

2. Uninsured/Underinsured Motorist ("UM") Coverage. UM coverage is the most important coverage you can buy because it protects you and your family from damages caused by someone else in the event that the person who is at fault in a car accident has no insurance or insufficient insurance to pay for your damages. If you or anyone in your family is injured at the hands of an uninsured driver, more likely than not your only compensation remedy will be through your UM protection.
   
   

An optional coverage which you should also consider is known as "medical payments" or "Med-Pay" coverage. Med-Pay benefits pay for medical bills which you may incur if you are injured in a motor vehicle accident. Med-Pay benefits are typically available in the amount of $5,000. Higher Med-Pay limits may also be purchased from certain motor vehicle insurance carriers. Prior to the laws which took effect in 1994, this type of coverage was mandatory. It is now optional. If you have no group health insurance available to pay your medical bills in the event you are injured in a motor vehicle accident, you should purchase medical payments coverage through your auto policy.

Recommendations
Your goals should be to maximize your protection for your family and yourself. Levy & Droney suggests that you consider taking the following steps to maximize the protection afforded by your automobile insurance:

1. Do not reduce UM coverage. Under current law, you have the option of reducing your UM coverage below your liability level. Never do so. We recommend that you never sign any election which reduces your UM coverage below your liability limits. If you have previously reduced this coverage, contact your agent or insurance company and revoke that election. At a minimum, you will want to provide as much protection for yourself and your family as you do for others whom you may injure in an automobile accident.
   
   
2. Double your UM coverage regardless of the number of vehicles you insure. In Connecticut, you must be given the option by your insurance carrier to double your UM protection. Doing so will provide you and your family with significantly more protection in the event that you are injured at the hands of an uninsured/underinsured motorist.
   
   
3. Increase your BI limits. Under the current law, personal protection against an uninsured motorist (UM coverage) is limited to two times your BI limits. If your BI limits are the mandatory minimum $20,000/$40,000, the most UM protection you can purchase will provide family protection of $40,000/$80,000. If you now have $250,000/$500,000 in BI coverage and a $1,000,000 umbrella and you want to protect your family like you protect strangers, increase your BI limit at least to $500,000 single limit and then double your UM to $1,000,000.
   
   
4. Elect conversion UM coverage. We recommend that you elect to obtain conversion UM coverage. This special option gives you and your family the right to recover the full amount of the UM coverage elected but not exceeding actual damages regardless of the amount paid by the person at fault or any other payment made to the injured person. Without conversion coverage, there is no guarantee that you or your family can enjoy the benefits of your monies spent on UM coverage because your own insurance company will get a credit for other payments. You get maximum UM protection with conversion double coverage.

Conclusion
Connecticut law requires that all motor vehicle operators carry automobile insurance for a good reason. Accidents happen on a daily basis and everyday people are injured in those accidents. Protect yourself, your assets and your families by insuring that you carry adequate protection. Each one of the options recommended in this article will add some additional cost to your insurance. However, we believe that any extra expense to obtain this important protection is money well spent. Please feel free to share this valuable information with your family and friends so that they too may adequately protect themselves.