Pennsylvania Raises Accident Surcharge Threshold for Auto Insurance to $2,250

As of July 1, 2025, Pennsylvania requires insurers to adjust their accident surcharge thresholds under PID Notice 2025‑01. The allowable cap for cumulative at-fault claim costs over a three-year span increased to $2,250.

Why This Change Matters

• Lower-risk drivers face fewer surcharge penalties
• Encourages selective surcharge application only for larger claim costs
• Supports fairness and avoids penalizing minor claims

Implementation Timeline

• Insurers must file revised rates by April 1, 2025
• Changes take effect no later than July 1, 2025

Consumer Takeaways

If your recent at-fault claims totaled under $2,250 over three years, you may avoid surcharge increases. Check with your insurer for rate updates and differences.

Official Source

Details available in PID’s compliance notice: AAIS compliance alert.