PA| Bulletin 2026-01, from the Pennsylvania Insurance Department announces that, effective July 1, 2026, the accident surcharge dollar threshold (cap) for private passenger automobile insurance will increase from $2,250 to $2,350, meaning insurers may not impose surcharges, rate penalties, premium increases, cancellations, nonrenewals, or driver record point assignments when an insured’s aggregate claim cost over a three-year period stays at or below this new cap, measured above any deductible or self-insured retention, as required by 75 Pa.C.S. § 1799.3. The Department must adjust this cap at least every three years based on changes in the Consumer Price Index for medical care and auto maintenance/repair and may round to the nearest $50.
Insurers and rating organizations must file the corresponding rate/rule revisions for prior approval by April 1, 2026, with an effective date no later than July 1, 2026, limiting those filings to the threshold change only and excluding unrelated revisions and surcharge disclosure plans, which do not require prior approval.