New Insurance Laws in Connecticut: What You Need to Know About Auto & Home Reforms

Connecticut has recently enacted several significant reforms impacting both auto and home insurance. Staying informed about these changes is essential for every policyholder and anyone seeking guidance from an experienced insurance agent in CT. Below, we break down the most important updates and what they mean for you.

• Minimum Liability Coverage Proposal:

As of 2024, Connecticut’s minimum auto liability coverage remains at 25/50/25. However, there is a proposal to increase these limits to 100/300, which would provide greater protection for drivers. While not yet law, it’s wise to review your current policy and consider higher coverage levels to prepare for possible future requirements.

• Why This Matters:

Higher minimums could mean increased premiums, but also better financial protection in the event of an accident. Consulting with an insurance agent in CT can help you assess your current coverage and make informed adjustments.

• Restrictions on Cancellations and Premium Increases:

Connecticut law now prohibits insurers from canceling, nonrenewing, or raising premiums on homeowners insurance solely due to claims from catastrophic events or claims made by previous owners—provided the risks have been addressed. Additionally, claims or inquiries resulting in payouts under $500 cannot be used as the sole reason for cancellation or premium hikes.

• Flood Insurance Disclosure Requirements:

Starting July 1, 2026, all homeowners and renters insurance policies must include a clear notice stating that flood damage is not covered and that separate flood insurance is available. Insurers must also provide information on how to obtain flood insurance, either through the National Flood Insurance Program or private providers.

• What Homeowners Should Do:

Review your current policy and ensure you understand what is and isn’t covered. If you live in a flood-prone area, speak with an insurance agent in CT about purchasing a separate flood insurance policy.

• Long-Term Care Insurance:

New reforms cap annual rate increases at 10% for certain long-term care policies, introduce a 20% tax credit on premiums, and require public hearings for rate hikes above 10%. These measures aim to make long-term care insurance more affordable and transparent.

• Captive Insurance Law Updates:

Effective October 1, 2025, amendments to Connecticut’s captive insurance laws make it easier for captive insurers to restructure and transfer protected cells, enhancing the state’s business-friendly insurance environment.

• Mental Health Coverage and Rate Regulation:

Recent legislation empowers the Insurance Commissioner to limit rate increases for insurers with a history of excessive hikes and to fine companies that fail to comply with mental health parity laws. This is part of a broader effort to improve affordability and transparency in the insurance market.

• Consult an Insurance Agent in CT:

With these evolving laws, working with a knowledgeable insurance agent in CT is more important than ever. An agent can help you navigate policy changes, ensure compliance, and find the best coverage for your needs.

• Regular Policy Reviews:

Laws and insurance products change frequently. Schedule annual reviews with your agent to keep your coverage up to date and take advantage of new consumer protections.

Insurance Near Me CT is committed to helping Connecticut residents understand and adapt to these new insurance laws. For personalized advice or a policy review, contact your trusted insurance agent in CT today.