January 1st, 2018 brings not just a new year, but a big change to the auto insurance world in the state of Connecticut. Public Act 17-114 becomes effective January 1st, 2018 which increases the state mandated minimum liability limits from 20,000 per person, 40,000 per accident, and 10,000 for property damage to 25,000 per person, 50,000 per accident, and 25,000 for property damage.

You may be asking yourself, “So what?”, well, there are a few ramifications to this change. First, insurance companies will be forced to increase your limits upon any renewal after December 31st, 2017. This increase to your limits will most likely cause your insurance premium to increase. Second, when you go to purchase auto insurance in 2018, you will no longer be offered 20/40/10 as an option. Third, if an insured amends or endorses an insurance policy on or after January 1st, 2018 and carries liability limits below the new mandated limit, an additional endorsement will automatically be made to increase their liability limits to the new mandated limit.

Keep in mind that there are many benefits to having liability limits above the state minimum coverage like pricing and tiering. Also, think about the features within newer cars today and how much it would be to replace those features. All of these points and other added benefits will be addressed in a subsequent post. For more information about your current policy and policy changes please contact us today to see how we can help.