On January 3, 2026, the Pennsylvania Insurance Department (PID) issued Notice 2026-01 regarding private passenger automobile insurance and an increase to the accident surcharge dollar threshold (cap).

The notice states that insurers writing private passenger automobile insurance in the state may not, by law, penalize their policyholders whose aggregate claim costs over a three-year period do not exceed a certain threshold (cap). Effective July 1, 2026, the accident surcharge dollar threshold (cap) will increase to $2,350. Each individual insurer should file the previously discussed change for prior approval by April 1, 2026, and specify an effective date of no later than July 1, 2026.

Please see Notice 2026-01 for more information. For any questions regarding the notice, please contact Dillon Leonard at 717-783-0441 or dilleonard@pa.gov.