PA| The Pennsylvania Insurance Department has announced an increase in the Accident Surcharge Dollar Threshold (Cap) to $2,250, effective July 1, 2025. This cap represents the maximum aggregate claim cost over a 3-year period that insurers can use to penalize policyholders through rate surcharges or premium increases. The adjustment, required by law at least every 3 years, is based on changes in the Consumer Price Index for medical care and automobile maintenance and repair costs. Insurers are required to file this change for prior approval by April 1, 2025, with an effective date no later than July 1, 2025.
- The previous threshold cap was $2,100, set on July 1, 2023.
- The cap applies to any person injured or property damaged, measured in excess of any deductible or self-insured retention.
- Insurers are advised to limit their rate/rule filings to the required threshold revision only, excluding unrelated changes or revisions.