Liability coverage pays for bodily injury or property damage that you become legally responsible for as a result of driving your vehicle. Automobile Liability insurance covers the drivers listed on the policy as well as anyone driving your car with permission from injuries or property damage that you may be legally liable for as a result of an accident.
Liability coverage will not pay for injuries to your own family members in the car. Injuries to the passengers in the car usually fall under the "Medical Coverage" described below.

Medical coverage pays the initial medical bills for you, members of your family and passengers in your car. In many accidents the cost of medical attention quickly exceeds the amount of medical coverage. Non-family passengers can claim compensation from your liability coverage, but family members can not.
For this reason, it is wise to obtain as much medical coverage on your automobile policy. It is relatively inexpensive and can minimize your out-of-pocket medical expenses associated with an automobile accident.
Medical coverage also covers your household members if they are passengers in a car involved in an accident. It may also cover if you are struck by a car as a pedestrian.

TIP: Medical coverage is relatively inexpensive, you should consider raising your limits.

Uninsured Motorist covers your property damage and personal injury in the event you're hit by an uninsured motorist. Also covers hit-and-run accidents. Uninsured motorist coverage is required in the state of Connecticut.

Underinsured Motorist covers your personal injury and property damage caused by another party, when the amount of damage exceeds the other party's liability limits. This coverage applies after the other parties liability limit is exhausted.

Comprehensive coverage pays for damage to the car caused by non-accident events such as theft, vandalism, acts of God, striking an animal, storms, etc.

Collision coverage pays for the damage to your car caused by a crash. Collision pays regardless of responsibility. If another party is responsible for the damages to your car, the insurance carrier will pursue the other party on your behalf. Your insurance company will collect payment for the repairs from the other party's insurance company or the party directly. Financing institutions usually required financed and leased vehicles to carry collision insurance.

NOTE: The maximum amount of collision protection is usually limited by the depreciated value of your car. This is not the same as the "replacement cost".

This coverage provides for the difference between the amount paid under collision or comprehensive coverage to cover a total loss and the amount to pay off the lease or finance contract balance on the vehicle. Many lease or finance contracts include this coverage, but if yours does not you should consider including the coverage on your auto policy. If the payoff amount on the vehicle is more than the payout under your comprehensive or collision coverage and you don't have gap coverage, you will be responsible for the difference.
TIP: If your automobile is leased, check and make sure you have this coverage. Failure to carry sufficient insurance can be detrimental to your financial well-being.

This can include emergency towing or repairs while on the road. Rental car reimbursement when your car is being repaired from a covered loss. Another coverage that is often overlooked is FULL GLASS coverage. Glass coverage covers the glass in your car, including windshields cracked by harsh winter roads.

If you have homeowner's liability in addition to auto liability coverage, you may want to consider a personal liability umbrella. An umbrella policy applies when the underlying limits of your home or auto liability are exhausted due to bodily injury or property damage.
An umbrella policy will pick up bodily injury or property damage amounts that you become legally responsible for, above the policy limit of the underlying personal auto policy. The umbrella policy will cover up to the umbrella limit. The premium for this additional coverage is often a fraction of the cost of the personal auto policy. The umbrella also offers additional liability coverage above the liability limits of the underlying homeowner's policy.
TIP: In many car accidents and accidents at home, the underlying liability limits are exhausted. Once the insurance is exhausted the policyholder is then liable for any remaining damages. Umbrella coverage minimizes your risk.

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