Connecticut drivers face a troubling reality when serious crashes occur. Connecticut law generally prohibits stacking uninsured/underinsured motorist (UM/UIM) coverage across multiple vehicles or policies for a single crash. This anti-stacking rule means you cannot combine coverage limits from different vehicles on the same policy to increase available benefits after a single accident.
However, Connecticut offers a powerful alternative that most drivers do not know exists. Understanding how underinsured motorist conversion coverage works can mean the difference between partial compensation and full recovery after a serious crash. When facing the complex landscape of UM/UIM coverage after an accident, motor vehicle accident lawyer in Waterbury, CT can help injured Connecticut residents navigate these coverage options and maximize available benefits.
What Does Connecticut's Anti-Stacking Rule Mean for Drivers?
Connecticut’s anti-stacking rule is in Connecticut General Statutes § 38a-336. This means you cannot combine coverage limits across multiple vehicles on the same policy or across separate policies. If you insure three vehicles with $50,000 in UM/UIM coverage each, you might assume you have $150,000 in total protection available for a serious accident.
That assumption would be wrong. Under Connecticut’s anti-stacking rule, you generally cannot add together UM/UIM limits from multiple vehicles or policies. In many situations, that means you’re effectively limited to one applicable policy limit for the crash. The statute specifically provides that if you are occupying an owned vehicle at the time of the accident, only the coverage on that vehicle applies.
This limitation applies to both intra-policy stacking within a single policy and inter-policy stacking across separate policies. Connecticut law also addresses crashes in nonowned vehicles: the occupied vehicle’s UM/UIM coverage is primary, coverage where you are a named insured is secondary, and other applicable policies are excess, but the total recoverable amount is capped at the highest single applicable UM/UIM limit.
How Does Underinsured Motorist Conversion Coverage Work?
Connecticut requires insurers to offer underinsured motorist conversion coverage for an additional premium. If purchased, conversion coverage is provided in place of standard underinsured motorist coverage. This coverage represents a fundamental departure from standard UIM protection. With standard UIM coverage, your insurer reduces the available benefits by any payments made by the at-fault driver's insurance company.
Conversion coverage operates differently and more favorably for policyholders. When you purchase conversion coverage, payments from the at-fault driver's liability insurance do not reduce your UIM benefits. Instead, with conversion coverage, the payment from the at-fault driver’s liability policy does not reduce your conversion benefits, so you may recover the liability payment in addition to your conversion coverage (subject to the conversion statute’s requirements).
Consider a concrete example of how this works. You suffer $150,000 in damages after a crash with an underinsured driver who carries only $25,000 in liability coverage. With standard UIM coverage of $100,000, you would collect $25,000 from the at-fault driver's insurer. Your UIM carrier would then pay only $75,000 more, bringing your total recovery to $100,000 despite damages of $150,000.
With conversion coverage of $100,000, the calculation changes dramatically. You collect the full $25,000 from the at-fault driver's liability insurance. Then your conversion coverage pays an additional $100,000. Your total recovery reaches $125,000, significantly closer to your actual damages. The statute mandates that conversion coverage cannot be reduced for payments by or on behalf of the tortfeasor or any third party.
When Should Connecticut Drivers Purchase Conversion Coverage?
Conversion coverage requires an additional premium beyond standard UM/UIM coverage. Connecticut law requires insurers to offer this coverage and disclose its availability, premium cost, and description when selling new automobile policies. The disclosure must appear conspicuously on the informed consent form that addresses UM/UIM coverage options.
Most drivers should seriously consider purchasing conversion coverage despite the additional cost. Connecticut's minimum liability limits remain $25,000 per person and $50,000 per accident for bodily injury. Many drivers carry only these minimum amounts, meaning serious accidents frequently result in underinsured situations where the at-fault driver's insurance falls far short of covering the victim's damages.
The additional premium for conversion coverage typically represents a modest increase compared to the substantially better protection it provides in serious accident cases. This becomes especially important for drivers with significant assets to protect or those who regularly transport family members. The statute provides that once you select conversion coverage, it applies to all subsequent renewals unless you change it in writing.
What Limitations Still Apply to Connecticut UM/UIM Coverage?
Even with conversion coverage, important limitations remain under Connecticut law. The exhaustion requirement means your UIM coverage only becomes available after the at-fault driver's liability limits have been fully paid through judgments or settlements. Because Connecticut law generally requires exhaustion of the tortfeasor’s bodily-injury liability limits by payment of judgments or settlements, settling for less than the full available limits can jeopardize an underinsured motorist claim.
Connecticut law prevents auto policies from shortening the deadline for a UM/UIM lawsuit or arbitration demand to less than three years from the date of the accident. In an underinsured motorist claim, you may toll the limitation period by (A) notifying your insurer in writing of the underinsured motorist claim before the limitation period expires, and (B) commencing suit or demanding arbitration no more than 180 days after the liability limits are exhausted by settlements or final judgments (after any appeals).
For an uninsured motorist claim where the tortfeasor is uninsured because the liability insurer denies coverage or becomes insolvent, the policy cannot shorten the deadline to less than one year from the date you receive written notice of the denial or insolvency.
Additional policy exclusions may apply depending on your specific insurance contract. Common exclusions include coverage for injuries sustained while occupying a vehicle you own but failed to insure, or injuries occurring during the commission of a felony.
Connecticut law prohibits certain reductions. For example, UM/UIM benefits generally cannot be reduced because of Social Security disability benefits. And for policies issued or renewed on/after October 1, 2015, UM/UIM benefits generally cannot be reduced for certain tortfeasor payments made for bodily injury to people other than insureds under the policy, or for property damage payments.
Are There Any Exceptions to Connecticut's Anti-Stacking Rules?
Connecticut courts have recognized limited exceptions to the anti-stacking prohibition. In a narrow situation where two separate primary policies both identify and insure the same vehicle, the Connecticut Appellate Court has allowed the insured to recover the UM limits of both policies combined (assuming damages equal or exceed the combined limits).
Connecticut appellate courts have addressed this situation in cases involving plaintiffs who maintained multiple policies covering the same vehicle. The courts reasoned that nothing in Connecticut law prevents a motorist from obtaining multiple policies on the same vehicle, and when each policy specifically names the covered vehicle, the anti-stacking provision should not apply.
Passengers in non-owned vehicles may also have access to multiple coverage sources under the pyramiding doctrine. When you occupy a vehicle you do not own, you may be entitled to coverage under multiple policies as long as each policy's limit exceeds the tortfeasor's liability limit. However, even in these situations, your total recovery cannot exceed the highest UM/UIM limit of any single policy under which you are covered.
What Steps Should You Take After a Crash with an Underinsured Driver?
After any motor vehicle crash in Connecticut, seeking immediate medical attention represents the critical first step, even if you believe your injuries are minor. Many serious injuries involve delayed symptoms, and creating a contemporaneous medical record strengthens any subsequent insurance claim. Once you have addressed immediate medical needs, notify your insurance carrier promptly about the accident.
Although Connecticut law requires notification within a reasonable time and allows at least three years to file suit or demand arbitration, timely reporting protects your rights and prevents your insurer from claiming prejudice. Your notification should specifically identify the claim as a potential underinsured motorist claim, as a generic notice of any potential claim may not satisfy the statute's requirements.
Avoid providing recorded statements to any insurance company, including your own carrier, until you have consulted with legal counsel. Insurance adjusters may use even innocent recollections to minimize payouts or dispute liability. Document everything related to the accident, including photographs of the scene and vehicles, witness contact information, police reports, and all medical treatment and expenses.
Fault still matters in UM/UIM claims. Connecticut’s modified comparative negligence rule reduces any recovery by your percentage of fault and bars recovery if your negligence is greater than the combined negligence of the parties you’re seeking recovery from. Insurance companies closely scrutinize driver behavior to find any basis to assign fault, making careful documentation and legal representation essential.
If you believe you have been injured in a crash with an uninsured or underinsured driver, consulting with an experienced car accident attorney becomes essential. A knowledgeable attorney can review your policy, evaluate whether you have conversion coverage, and pursue all available benefits under Connecticut law.
