If you're shopping for insurance in Pennsylvania in 2026, you're navigating one of the most dynamic insurance landscapes in the country. Between groundbreaking healthcare mandates, major licensing law overhauls, and unique auto insurance rules, the Keystone State is charting its own course. Whether you're an insurance professional adapting to new licensing requirements or a consumer trying to understand your coverage options, here's what you need to know about Pennsylvania insurance in 2026.
Act 142: Pennsylvania Rewrites Insurance Licensing Rules
In one of the most significant changes to Pennsylvania's insurance industry, Act 142 eliminated the pre-licensing education requirement that had been in place for decades. Signed by Governor Josh Shapiro in October 2024 and effective April 29, 2025, this law removes the previous mandate that aspiring insurance agents complete 24 hours of approved coursework before taking the licensing exam.
What does this mean for you? If you're considering becoming an insurance agent in Pennsylvania, you can now go straight to the state licensing exam without sitting through hours of mandatory classes. The exam itself hasn't changed—you still need to pass it—but the barrier to entry is significantly lower. That said, most industry experts still recommend taking prep courses since the exam remains challenging.
The trade-off? Act 142 introduced new continuing education requirements. All licensed agents must now complete three hours of ethics training as part of their 24-hour biennial continuing education requirement. Additionally, agents holding property, casualty, or personal lines licenses must complete two hours of flood insurance education. For agents licensed before April 29, 2025, these new requirements must be met by April 29, 2026, or the end of their current license period, whichever comes later.
Groundbreaking Breast Cancer Coverage Mandate
Pennsylvania made healthcare history with Act 1 of 2023, becoming the first state in the nation to mandate insurance coverage for BRCA genetic testing. Effective December 31, 2024, all state-regulated health insurance plans must cover diagnostic breast examinations and supplemental breast screening—including breast MRIs, genetic testing, and ultrasounds—with cost-sharing requirements no less favorable than standard mammography screening.
This is a bigger deal than it might sound. BRCA gene mutations significantly increase the risk of breast, ovarian, pancreatic, and prostate cancers. Testing for these mutations typically cost hundreds or even thousands of dollars out-of-pocket. Under the new mandate, approximately three million Pennsylvanians with private, state-regulated insurance can now access genetic counseling, testing, MRIs, and ultrasounds without copays, deductibles, or coinsurance—the same way they'd get a routine mammogram.
It's worth noting that this mandate applies only to private, state-regulated plans. If you're covered through Medicare, Medicaid (Medical Assistance in Pennsylvania), or a self-insured employer plan governed by federal ERISA law, the mandate doesn't apply—though many of these programs already offer similar coverage.
Understanding Pennsylvania's Choice No-Fault Auto Insurance
Pennsylvania is one of only three states with a "choice no-fault" auto insurance system, and if you don't understand how it works, you could be leaving money on the table—or worse, limiting your legal rights after an accident. Here's the deal: Pennsylvania requires all drivers to carry Personal Injury Protection (PIP) coverage of at least $5,000, which covers your medical expenses regardless of who caused the accident. Your insurance pays your bills; their insurance pays theirs.
But here's where the "choice" part comes in. When you buy auto insurance in Pennsylvania, you must choose between two options: limited tort or full tort. With limited tort, you agree to give up your right to sue for pain and suffering after an accident except in cases of death or permanent, serious disfigurement. In exchange, you get lower premiums. With full tort, you retain your full right to sue for any damages, including pain and suffering, but you'll pay more each month.
This decision matters more in 2026 than ever before because auto insurance rates in Pennsylvania jumped 35 percent through 2024—significantly higher than the 22 percent national average. The average Pennsylvania driver now pays around $2,463 annually for full coverage. If you've been automatically renewing your policy without reviewing your tort selection, now's the time to reconsider whether the savings from limited tort are worth the trade-off.
One more quirk: while Pennsylvania uses no-fault for bodily injury claims, property damage claims still follow traditional fault-based rules. If someone hits your car, their liability insurance pays for the damage, not yours.
Health Insurance Marketplace: Costs and Coverage in 2026
If you buy health insurance through Pennsylvania's marketplace, Pennie, you've got a lot to pay attention to in 2026. Over 496,000 Pennsylvanians enrolled through Pennie for 2025, with 86 percent qualifying for federal tax credits that averaged $541 per month. That's real money—the difference between affordable coverage and going uninsured for many families.
Pennsylvania's rate review process and reinsurance program saved consumers $77.2 million in 2025, keeping premium increases to an average of 6 percent statewide—two percentage points lower than what insurers initially requested. The state's reinsurance program alone holds premiums about 4.6 percent lower than they would be otherwise.
However, there's uncertainty ahead. Enhanced Premium Tax Credits that have kept coverage affordable for millions of Americans are set to expire, which could cause monthly costs for Pennie enrollees to increase by 102 percent on average. If you're currently enrolled in a marketplace plan or planning to shop for one, stay informed about federal policy changes that could significantly impact your premiums.
What These Changes Mean for Your Wallet
Beyond auto and health insurance, Pennsylvania homeowners are also feeling the squeeze. Home insurance premiums jumped approximately 44 percent between 2021 and 2024, with the average policy now costing about $1,440 annually. That's still below the national average of $2,423, but the rate of increase is among the steepest in the nation.
What can you do about rising insurance costs? Start by shopping around. Pennsylvania has 14 insurers offering marketplace health plans and dozens more in the auto and home insurance markets. Get quotes from at least three different companies. Review your coverage annually—your needs change, and so do insurance company rates. Consider bundling home and auto policies for multi-policy discounts. And if you're buying health insurance through Pennie, work with a certified enrollment assister who can help you navigate tax credits and find the plan that best fits your medical needs and budget.
How to Navigate Pennsylvania Insurance in 2026
Pennsylvania's insurance landscape is more complex than most states, but that complexity also creates opportunities. Take advantage of the expanded breast cancer screening coverage if you're at higher risk. Understand your tort selection when renewing auto insurance—it's not just fine print. If you're shopping for health coverage, don't miss the open enrollment period, and explore whether you qualify for those substantial tax credits.
For insurance professionals, Act 142 represents both opportunity and responsibility. The lower barrier to entry may bring new talent into the industry, but the new ethics and flood insurance continuing education requirements underscore the need for ongoing professionalism and expertise. The insurance industry is changing fast in Pennsylvania, and staying informed isn't optional—it's essential.
Whether you're protecting your health, your car, or your home, understanding Pennsylvania's unique insurance requirements and opportunities puts you in control. Take the time to review your coverage, ask questions, and make informed decisions. Your financial security depends on it.
