Connecticut Auto & Home Insurance Premiums Keep Rising

Connecticut residents are feeling it in their wallets: both auto and homeowners insurance premiums in the state have been climbing sharply in recent years. Whether you're renewing a car policy or shopping for a homeowner’s plan, the trend is unmistakable — insurers are requesting and receiving rate hikes, while risk factors like inflation, weather damage, and repair costs push insurers to raise prices.

In this article, we’ll explore:

• Recent premium increase data for auto and home policies in Connecticut

• Key factors driving the surges

• How the regulatory environment in CT responds

• What homeowners and drivers can do to manage or reduce their insurance burden

Recent Trends & Data

Auto Insurance Premiums Rising in CT

• A report from the Connecticut Office of the State Comptroller shows average auto insurance premiums rose 11.2% in 2023 and another 8.9% in 2024.

• Forecasts suggest auto premiums in 2025 may increase by ~11.9% on average in Connecticut, following a 16% jump in 2024.

• Some observers warn that the surge could be more dramatic in certain ZIP codes or for higher-risk drivers, with predictions of up to a 35% increase in extreme cases.

These increases affect many drivers, even those without recent claims or traffic violations, since insurers adjust their base rates in response to macro-level costs and trends.

Homeowners Insurance Premiums Also Jumping

• In 2024 alone, homeowners in Connecticut saw their insurance premiums rise by 13.5%.

• In the previous year (2023), the rate increase was about 9.6% statewide.

• Non-renewals of homeowner policies have also surged: the number of non-renewal notices rose 45% from 2022.

• A report by Insurify suggests that Connecticut homeowners' insurance premiums rose ~16% between 2021 and 2024 on average.

The trend is clear: rising costs for repair, building materials, extreme weather, and underwriting risk are pushing up homeowner rates.

Why Are Premiums Rising?

Let’s dig into the main drivers behind these increases — many of which affect both auto and home insurance.

1. Inflation & Rising Repair/Replacement Costs

• Connecticut’s consumer alerts note that over the past three years, car repair costs have risen ~27%.

• Building materials, labor, and supply chain disruptions increase the cost to repair or rebuild homes, so insurers must charge more to cover their risk.

2. More Extreme Weather & Climate Risks

• Storms, flooding, wind damage, and weather volatility have become more frequent. In Connecticut, insurers are flagging wind and water damage as major loss drivers.

• Even areas outside formal “flood zones” are seeing damage, complicating risk assessments.

3. Increased Claim Frequency & Severity

• For auto, more accidents, higher medical claims, and more expensive parts push up average claim payouts.

• Insurers also face higher reinsurance and litigation costs, which get passed on to consumers.

4. Regulatory & Approval Dynamics

• Insurance companies in Connecticut must submit rate filings to the Connecticut Insurance Department (CID). The CID can adjust or reduce requested hikes where not fully justified.

• In 2023, for example, insurers requested an average hike of ~11.1%, but the permitted increase was trimmed to ~9.6%.

• However, the regulatory buffer is limited if external cost pressures are strong.

5. Tariffs & Global Supply Chain Pressures

• Tariffs on imported building materials, auto parts, and other components have driven up replacement costs. A study suggests Connecticut homeowners could pay an extra $80 per year on average because of tariffs.

• Insurers consider these added costs when justifying rate adjustments.

6. Insurance Market Cycles & Pricing Pressure

• The insurance industry operates in cycles: after periods of heavy losses, insurers tighten underwriting and push up rates.

• The current phase is one of increasing premiums to restore profitability and reserves.

What This Means for Connecticut Residents

• Affordability strains: Many homeowners and drivers are facing sticker shock at renewal time, potentially leading to reductions in coverage.

• Policy non-renewals: Insurers may choose not to renew some high-risk policies rather than assume ongoing elevated risk.

• Demand for transparency: Consumers and state officials are pushing insurers to justify rate hikes in detail and to hold public hearings.

Connecticut’s regulatory environment has more safeguards than many states — but when macro pressures are strong, many of those safeguards get stretched.

Strategies to Save & Mitigate Rising Costs

You may not be able to stop rate hikes altogether, but here are practical moves that can help:

Strategy	Why It Helps
Bundle auto + home policies	Many insurers offer significant multi-policy discounts
Increase your deductible	Higher deductibles, lower premiums (if you can afford occasional out-of-pocket costs)
Improve your home’s resilience	Reinforce the roof, install storm shutters, and mitigate flood risk
Maintain a clean driving record	Avoid claims or violations that trigger “higher risk” surcharges
Shop & compare quotes annually	Markets shift — switching may yield better rates
Ask about discounts	Safety features, claims-free history, age/gender, affiliations
Keep policies updated	Avoid “gaps” or underinsurance that could lead to big surprises

Also, keep an eye on rate filings published by the Connecticut Insurance Department, and participate in public comment periods when proposed hikes exceed certain thresholds.

Conclusion

Rising auto and home insurance premiums in Connecticut are no coincidence. They reflect growing systemic pressures — inflation, climate risk, increasing repair costs, regulatory constraints, and market dynamics. While homeowners and drivers can’t control everything, they can become more informed consumers and take actionable steps to mitigate the impact.

If you’d like help auditing your current policies or finding more affordable coverage tailored to your area, I’d be glad to run comparisons or offer guidance.

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FAQs

How much did auto insurance rates rise recently in Connecticut?

A: The average auto insurance premium in CT increased about 11.2% in 2023 and 8.9% in 2024.

What was the 2024 increase for Connecticut homeowners' insurance?

A: Homeowners insurance premiums in Connecticut jumped 13.5% in 2024.

Why are insurance premiums rising so fast?

A: Main causes include inflation-driven repair cost increases, climate and weather damage, more frequent/more expensive claims, reinsurance costs, and regulatory pressure to justify increases.

How can Connecticut residents reduce their premium growth?

A: Strategies include bundling policies, raising deductibles, improving home resilience, keeping a clean driving record, comparing quotes, and asking about discounts.

Does the Connecticut Insurance Department regulate rate hikes?

Yes — insurers must submit rate filings to the CID, which can adjust or reduce requested increases if not supported actuarially.