Understanding the High Cost of Car Insurance in Connecticut

If you’ve lived in other states, you might notice that car insurance in Connecticut generally costs more. One of the reasons for the higher rates is that the state has an affluent population able to purchase more expensive vehicles. Here’s a deeper look into why it costs more for auto insurance in the Constitution State.

Typical Auto Coverage

Just like in other states across America, auto insurance agencies in Connecticut offer basic plans and more detailed customized plans. Here are the three types of coverage in a basic auto insurance plan for you and your family in Connecticut and across other states:

  • Property – Pays for damage to your car due to accident or theft.
  • Medical – Covers bills for medical treatment and medicine.
  • Liability – Pays for damage to other people’s property.

The basic auto insurance plan is a more affordable option, whereas a customized plan gives you stronger protection. After reviewing an insurance plan, you may want to extend coverage or raise limits in certain areas. Every driver faces different factors that affect their monthly rates, including driving record, vehicle usage, and location.

Why Drivers Pay Higher Insurance in Connecticut

The value of an automobile also plays an important role in the determination of insurance rates. Connecticut has many high-income earners who can afford expensive cars and higher insurance costs. The reason expensive vehicles correlate with higher insurance costs is they attract thieves and vandals. In that sense, owning an expensive vehicle poses a higher risk than owning a regular car.

The cost of living is higher in the state as well, as residents expect to pay higher costs for many things that might be cheaper in other states. Another factor for higher rates is the state allows insurers to have plenty of control in setting prices.

All an insurer needs to do to raise their rates is to inform the state’s Department of Insurance that it’s doing so. Usually, the department avoids getting involved, but on occasion, may object to the increase.

Overall Increasing Costs Across the Economy

Auto repair costs have risen in recent years because auto shops have had to invest in newer digital technology. These tools help make repair work more efficient and give you valuable data about your vehicle. If you get into an accident and file a claim, your insurer will review it and send a check once it’s clear that the policy covers the incident.

Another reason Connecticut drivers pay higher insurance than most other places is due to the severe winter weather. Besides a higher risk of traffic accidents, northeast winters take their toll on vehicles in terms of wear and tear. Severe storms and cold weather conditions can degrade vehicles. So be prepared to pay more in Connecticut for multiple reasons.

Regardless of where you live, you need the right auto insurance if you drive. The last thing you need is to find out your auto insurance doesn’t cover everything you thought it did. So talk with an insurance expert to get the best deal. Contact us here at The Reardon Agency, and we will gladly answer any of your questions about car insurance in Connecticut.

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