The Pennsylvania Insurance Department published a bulletin announcing an increase in the accident surcharge dollar threshold for personal automobile insurance.

Section 1799.3(a) of 75 Pa.C.S. states that an insurer cannot cancel or refuse to renew a policy or apply any surcharge or rate penalty if a policyholder’s aggregate claim cost over 3 years does not exceed the threshold. The claim cost includes personal injury and property damage and is measured after consideration of the deductible.

The Department is required to adjust the threshold at least every three years using the Consumer Price Index. The previous cap of $2,100 is being increased to $2,250 and will be effective starting July 1, 2025.