Understanding Who Pays for Connecticut Auto Insurance Claims

Fault Determination and Primary Payer

In Connecticut, the driver who is legally at fault for an accident is typically responsible for the damages, and their insurance carrier pays the claim up to the limits of the policy. Connecticut follows a "fault" system, so the first step is establishing liability through police reports, witness statements, and accident reconstruction.

Mandatory Personal Injury Protection (PIP)

Every auto insurance policy in the state must include Personal Injury Protection coverage. PIP pays for medical expenses, lost wages, and certain other losses for the insured driver and passengers, regardless of fault, up to the policy limit. If the at‑fault driver's liability limits are insufficient, PIP can bridge the gap for the injured parties.

Liability Coverage Limits

Connecticut requires a minimum of $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage. When the at‑fault driver's liability limits are exhausted, the injured party may seek additional compensation through their own uninsured/underinsured motorist (UM/UMU) coverage, if purchased.

Uninsured and Underinsured Motorist Coverage

UM/UMU coverage steps in when the at‑fault driver lacks sufficient insurance. If the driver has no insurance, the victim's UM coverage pays up to the policy limit. If the driver is underinsured, the victim's UMU coverage covers the shortfall between the at‑fault driver's liability limit and the victim's losses.

Collision and Comprehensive Coverage

These optional coverages are paid by the policyholder's own insurer. Collision pays for damage to the insured vehicle after an accident, regardless of fault, while comprehensive covers non‑collision events such as theft or natural disasters. Deductibles apply, and claims are settled based on the policy's terms.

Third‑Party Payors and Subrogation

When an insurer pays a claim on behalf of its insured, it may seek reimbursement from the at‑fault driver's insurer through subrogation. Successful subrogation returns the paid amount to the original insurer, keeping premiums from rising unnecessarily.

Table: Key Payors by Claim Type

Steps to Take After an Accident

• Exchange information and document the scene.
• File a police report to establish fault.
• Notify your insurer promptly.
• Review your policy limits and any UM/UMU coverage.
• If needed, consult a Connecticut‑licensed attorney to protect your rights during subrogation or settlement negotiations.