What is financial responsibility with regards to auto insurance?

One of the requirements in order to be able to get your car registered and drive legally in the state of Connecticut is to demonstrate financial responsibility. If you are involved in an accident and are found liable for damages to another person’s property or causing injury or death to that person, you must have the financial means to compensate that individual. Most people in Marlborough and West Hartford purchase auto insurance to meet their financial responsibility requirements.

The state of Connecticut holds the driver responsible, under tort law, for claims that arise from an at-fault accident. If you do not demonstrate financial responsibility by showing proof that you carry the state’s minimum mandatory bodily injury and property damage coverage, you can face serious consequences including the revocation of your registration and loss of driving privileges for three months.

Connecticut requires drivers to carry at least 20/40/15 liability coverage. What that means is that if you are found guilty of an accident that causes damage to property or injury to one or more people, your insurance will pay out up to $20,000 for bodily injury to one person or a maximum of $40,000 for all people injured in the same accident. Your insurance will also cover property damage up to the policy limit of $15,000.

While carrying the state mandatory liability coverage will allow you to get your car registered and get a drivers’ license, it may not be enough to cover a serious at-fault accident. Financial responsibility extends beyond the law. As your independent agent, we advise our clients to buy enough liability insurance to fit your personal situation.

If you have assets like a house or an investment account and a judgment is entered against you for an amount that exceeds your minimum liability coverage, you could be sued and held liable for the additional amount. You do not have to take chances with your financial future when you spend a little more and get the insurance coverage you need.