If you have a policy described as “full coverage”, it can be reassuring when you find yourself in an accident. In practice, however, there are limits to these plans that are worth knowing about.
The limits of full coverage
Insurers and consumers often use “full coverage” to describe a policy that combines liability, collision and comprehensive insurance. Collision and comprehensive coverage pay for damage to your vehicle, while the at-fault driver’s bodily injury liability pays your injury claim.
Connecticut requires at least $25,000 in bodily injury liability insurance for each person hurt in a crash, up to $50,000 for everyone injured in the same collision. Medical bills, lost income and other damages all fall under that single limit.
Reaching the limit does not erase the at-fault driver’s responsibility, but it caps what that policy can contribute. If your losses exceed the available amount, identifying another source becomes the next issue in your claim.
The role of underinsured coverage
Connecticut bridges the gap by requiring every auto policy to include uninsured motorist (UM) and underinsured motorist (UIM) coverage. UM addresses a driver with no liability policy, while UIM applies when the bodily injury funds are insufficient to cover your damages.
The at-fault driver’s bodily injury policy is usually the first source of payment. Once that carrier pays its full limit through a settlement or judgment, your UIM benefits can cover the remaining damages. For example, if your UIM limit is $100,000 and the other insurer pays $25,000, up to $75,000 may remain under standard policy.
Conversion coverage uses a different calculation because it removes this offset. Using the previous example, the $25,000 payment would not reduce your $100,000 UIM limit. As a result, up to the full amount may remain available, depending on your proven losses and the policy terms.
The path to further recovery
The circumstances of a crash sometimes extend liability beyond the driver who caused it. If the collision occurred during a work assignment, the employer could also be accountable. That connection may bring a commercial insurance policy into the case.
Careful investigation sometimes reveals other defendants. A bar that served alcohol to a visibly intoxicated patron, the maker of a defective part or a town that ignored a road hazard may each face a separate claim.
Connecticut generally allows two years from the injury date to sue a negligent driver. A UIM dispute may follow a different period, while a claim against a town can require much earlier notice.
An attorney may send required notices and request employment, insurance and alcohol sales records. Counsel may also seek video, vehicle data or road-maintenance files that could connect another party to the crash.