If you are a driver in Connecticut or anywhere for that matter, you know how complicated and confusing it can be to file a car accident claim, switch car insurance companies or simply add a person on to your policy. To help make things easier when dealing with your auto insurance company, we have listed some helpful tips for Connecticut car insurance customers below. Understanding these items can not only save you a lot of time and money on your Connecticut auto insurance, but it will also help you be better prepared in the event of a car accident.
1. How your Connecticut car insurance company determines your car's value after it has been declared a "total loss"
When totaling your car, your insurance company's goal is to help you find a new car within the same market. To do this, car insurance companies use three different methods for determining the value of the car declared a total loss, such as:
If the car insurance company is unable to find a car from within your area, they may have to find a replacement car outside your zip code, which can dramatically affect your car's true value. For instance, if you reside in a big city within Connecticut, such as New Haven, Bridgeport or Hartford, then the cost of replacing your car will likely be more expensive then if you lived in a suburb or more rural part of Connecticut.
2. Your car insurance company may be required to pay for sales tax and registration fee for a new car
Connecticut requires all car insurance companies to pay for your sales tax when you replace your totaled car with a new or used car. You must make the request and not assume the car insurance company will pay upfront. The tax will be calculated based on the pre-accident value of your car. If you buy a higher priced car as the replacement, the car insurance company will still go off the price of the totaled car.
3. Adding a teen to your car insurance policy
Most insurance companies do not require you to add your teen to your car insurance policy when they are a certain age, only when they receive their license. On the other hand, if you are in a high-risk pool, you may be required to add them when they receive their driver's permit. If you forget to add your licensed teen, and they are involved in a car accident, they will be covered; however, your insurance company may charge you back premiums from the date your teen received a license.
For your Connecticut teen to begin the process of receiving their license, they must complete the following steps:
- Review manual and take a practice test
- Apply for a learner's permit
- Practice driving with a parent or guardian supervisor
- Apply for license exam
- Take and pass the exam
- Receive license
This process is for first time drivers who are at least 16 years old. To ensure that the teen driver receives ample time to practice and to offset the number of accidents that involve teen drivers each year, Connecticut has different privileges for each provisional license:
Learner's Permit
When applying for a learner's permit, the teen should review the Connecticut Driver's Manual, to better prepare themselves for the test questions. Once they pass the written and vision test, they will be give a learner's permit which must be held for at least 180 days before they can apply for their license. In this time, they must take and pass a driver training course. If it is a state-approved course, the teen only needs to wait 120 days to apply for their license. If the course is a home-school course, they must wait 180 days before applying for their license.
Full License
Teens are eligible for their full license after all requirements have been fulfilled. There are new restrictions for 16 and 17 year old drivers. For instance, during the first 3 months of having a license, the teen may only drive with a licensed parent/guardian, driving instructor, or adult over 20 who have had their license for 4 years consecutively. The second 3 months the teen is permitted to drive with members of their immediate family. Also, during this time, Connecticut teen drivers are not permitted to drive between the hours of 12am-5am, nor have more passengers than seatbelts in their car.
To learn more about Connecticut teen driver laws and regulations, please visit the Connecticut DMV.
4. Paying in installments may increase your car insurance
"Fractional premium" fees are usually charged when you divide your car insurance annual premium into installments. Six month, quarterly or monthly are the typical breakdowns for most insurance companies. Generally, the more you break down your installments, the higher the administrative/fractional premium fees are. Always ask when applying for a new car insurance policy, and see exactly what the fees are for each payment you break down. Make sure to also ask your insurance provider if they offer an alternative way to make payments, such as Automatic Clearing House (ACH) processing, which withdrawals the funds right from your checking account. This may help eliminate processing fees while helping you stick to your budget.
5. How much does your car model affects your premium
The auto insurance company premium rating system for cars is on a scale from 3 to 27. The ratings are established by the Insurance Services Office (ISO), and the higher the number of your model, the higher your premium will likely be. These numbers are only available to auto insurance companies - so, no luck trying to find out your car's number before you purchase your car. But you can contact your insurance company for a quote to gain an idea of how much it will cost to cover your new wheels.
6. Paying for someone else's bad driving
If you loan your car to someone and they end up crashing it, you will have to file a claim with your car insurance company. As a result, you will have to pay your deductible (or any that apply) and your rates could potentially increase your car insurance rate. If your car is taken without permission, you are typically not held liable. If the driver is uninsured and causes damages exceeding your policy limit, the injured party may come after you for medical or property-damage expenses and not your friend.
7. Personal property in your car is not covered by your auto insurance
Stolen or damaged items from within your car are not covered by your auto insurance policy. Most policies will only cover smaller and less expensive items like CDs, but if you carry more expensive things, you will want to consider adding a rider to your home insurance policy. Keeping photos or video of your items is also a good idea. If something is stolen from your car, you may have to file a claim on your home insurance if you do not have a rider in place.
Even though most states typically have similar laws in place for car insurance, they do not typically have similar car insurance rates. That's because Connecticut car insurance rates are influenced by Connecticut's geographic location and its state laws. With that being said, it is always a good idea to shop around and compare the rates of various auto insurance companies. To assist you in the process Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the cheapest auto insurance coverage for your budget.