Connecticut House Bill HB05497

Connecticut 2015 Regular Session

• Introduced: 1/16/15
• Refer: 1/16/15

Caption

An Act Increasing The Minimum Financial Responsibility Coverage Required For Private Passenger Motor Vehicles.

Impact

If enacted, HB 05497 would directly affect the insurance market by mandating higher coverage amounts that drivers must maintain. This change could lead to increased insurance premiums as companies adjust to the new requirements. The bill aims to align state minimum coverage laws with current economic realities, ensuring that the financial safety nets for motor vehicle operators are more reflective of actual costs incurred in accidents. However, the increased financial burden on drivers raises concerns about accessibility, especially for lower-income citizens.

Summary

House Bill 05497 proposes an amendment to section 14-112 of the general statutes, aimed at increasing the minimum financial responsibility coverage required for private passenger motor vehicles in the state. The bill is driven by concerns over the adequacy of current coverage limits in the face of rising costs associated with vehicle accidents and damages. Proponents argue that raising these minimums is essential for protecting drivers and ensuring that victims of accidents receive appropriate compensation for injuries and damages sustained in collisions.

Contention

There are likely points of contention surrounding the bill, particularly from various stakeholders in the insurance industry. Opponents may argue that raising minimum coverage requirements could make vehicle ownership unaffordable for some individuals, potentially leading to more uninsured drivers. Critics may also express concerns about the regulatory implications for insurance companies, such as their ability to adapt to these changes and the administrative costs involved. Additionally, discussions in the legislature are expected to address the balance between ensuring adequate coverage and maintaining reasonable access to insurance for all drivers.