Deciding Whether a New Vehicle Is a Good Investment in Connecticut

As you consider your financial position and prepare your budget for life in Connecticut, you will want to decide whether a new vehicle will be a good investment.

One consideration is the fact that when you purchase a new vehicle, it loses value the minute you roll off of the dealer’s lot. However, a new vehicle provides a number of benefits. For example, you’ll have the full manufacturer’s warranty in case anything goes wrong, and you may be eligible to participate in the dealer or manufacturer’s scheduled maintenance program, depending on the model.

Contrast this with a used vehicle, about which you cannot be sure how well the previous owner treated it. Even if the former owner provides you with service records, you won’t be able to know all of the wear and tear or damage the car has suffered. There is a risk that you may have to spend more on repairs than if you purchased a new vehicle.

Another factor to consider is the image you want to project to the world. A new vehicle helps establish you as being financially well off, as well as being a discriminating consumer. If your work requires you to meet clients and take them for rides, a new car will be more impressive than an older model. The new car is a better investment because it can help you succeed at work or socially.

Because the auto industry tends to incrementally improve its products, it’s likely that a new model will have more amenities, better safety equipment, improved fuel efficiency and other features that an earlier model may lack.

If you are not focused on having the latest model, you may find it more beneficial to purchase a well-made used car. The previous owner will have already have had to deal with any manufacturer’s defects or repairs resulting from a recall, for example.

When you are ready to purchase your vehicle, remember to contact your independent agent in West Hartford to set up insurance.

What Type of Insurance Coverage is Required when I Lease a Vehicle in West Hartford, CT?

If you’re going to lease a vehicle and you live in West Hartford, Connecticut, you’ll need to provide your own insurance. Leasing only gives you temporary "ownership" of the car during the term of the lease, and doesn’t include any type of insurance whatsoever.

What type of insurance coverage do you need?

Although most states simply require you to carry liability coverage, you’ll have other insurance requirements when you lease. You’ll have to have insurance that will cover any damage that happens to that vehicle while you’re in possession of it.

Liability insurance

Liability insurance is the "minimum" amount of coverage, usually set by state law, required of anyone who owns or leases a vehicle. It provides bodily injury and property damage coverage for the other party in a motor vehicle accident if you’re deemed at fault.

Collision insurance

Collision insurance is insurance that covers you in the event you’re in an accident and you are at fault. (If you’re in an accident and the other driver is at fault, that driver’s liability insurance will cover you.) Collision insurance is specifically meant to cover vehicular damage caused by an accident. It also covers vehicle replacement, if necessary.

Comprehensive coverage

Comprehensive coverage covers your vehicle for damage that happens due to other events besides car accidents. For example, if your car is vandalized or hit by a tree branch, comprehensive insurance covers the damage and will repair or replace the vehicle as necessary.

Gap insurance

Gap insurance isn’t always required, but you may need it. If your car is totalled and you have comprehensive/collision insurance, you’ll get a check for the car from the insurance company based upon replacement value. However, the check you get may be less than the amount you still owe on your lease. Gap insurance will kick in and make up the difference.

You do not have to use a particular insurance company

You must carry the auto insurance coverage required by the leasing company, but you can choose your own insurance company. Shop around for the best quote and/or check with your current independent agent to get the best price for your coverage.

What Are the Benefits of Having Workers Compensation Insurance in West Hartford, Connecticut?

Your business depends on skilled workers, and your employees depend on you to protect their safety in the workplace. Some companies may think that workers’ compensation is just another annoying expense to deal with. However, it’s actually a requirement that you cannot ignore, much as you are required to have insurance for your auto.

When you establish a commercial enterprise in West Hartford, Connecticut, setting up insurance coverage for your workers is simply one of the many costs of doing business. One obvious benefit is that you will be operating in compliance with the law.

Failing to maintain proper workers’ compensation insurance could expose you to punitive legal action as well as expose you to lawsuits from injured employees or their dependents, and failing to make sure you are covered in this area could prove devastating to your business.

A major benefit of workers’ compensation is its provision to give employees regular payments in lieu of their wages if they become injured at the work site. This keeps your employees and their families financially stable as they recover. Another benefit is payment for past or future economic losses.

Coverage will also entitle your employees to receive reimbursements or direct payments to cover their medical expenses, including operations, doctor office visits, physical therapy sessions and related costs.

In the unfortunate situation where an employee is killed while under your employ, the workers’ compensation will provide benefits to his dependents. Making sure their family is protected even if they are injured or killed on the job is a strong benefit that can give your employees peace of mind.

Please feel free to contact your independent agent if you have any questions or need help with obtaining proper workers’ compensation for your business. He or she will have the expertise and knowledge to guide you through the details of setting up coverage.

Should I have Full Coverage on My Older Vehicle in West Hartford, Connecticut?

You’re probably wondering if you need full coverage insurance in Connecticut. Unfortunately, there’s no straight answer as maintaining a comprehensive insurance plan depends on a variety of factors.

Liability vs. Full Coverage

Liability coverage is always a given. Nearly all states require some form of automobile liability coverage, as it protects you and your assets if the accident in question is your fault. Liability coverage is often the cheapest form of insurance any driver can carry.

Collision and comprehensive coverage covers physical damage done to the vehicle in the event of an accident. In most cases you have to pay a deductible, which is usually anywhere from $250 to $1000. If the vehicle is leased or purchased with a loan, most financial institutions require owners to maintain full coverage for the life of the lease or loan.

Determining your Insurance Needs

The age and value of the vehicle should always be kept in consideration. For example, if you have a 10-year-old car with a value of $3,000, the costs of repairing that vehicle could easily exceed its overall value, effectively totaling it in the eyes of the insurance provider. Unless you have a vehicle that’s less than 5 years old or one with significant value, it’s usually not worth the trouble to maintain full coverage on an older vehicle.

A simple formula to use when determining whether to pay for collision and comprehensive insurance is to multiply your monthly premium for both by 12 months, or 4 months if you’re paying on a quarterly basis. The yearly cost of collision and comprehensive insurance should not exceed 10 percent of your car’s current value. If it does, you’re better off paying for only liability.

Maintaining full coverage on your vehicle is a matter of how much your vehicle is worth to you and how much you’re willing to spend each year. An independent agent in West Hartford can help you choose the right coverage plan for your needs.