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Pennsylvania Proposes Increase in Minimum Auto Insurance Coverage

A lawmaker presenting the proposed changes to Pennsylvania's auto insurance legislation.

News Summary

On June 25, 2025, Pennsylvania lawmakers introduced House Bill 1666, aiming to increase minimum property damage liability coverage from $5,000 to $25,000 per accident. This significant change seeks to provide enhanced financial protection for drivers and accident victims. The bill is currently under consideration by both the Pennsylvania House and Senate and could lead to operational adjustments for insurance providers. Supporters argue the increase aligns state insurance standards with inflation and rising repair costs, while critics express concern about potential premium hikes.

Pennsylvania lawmakers have proposed a significant change to the minimum auto insurance requirements by introducing House Bill 1666 on June 25, 2025. The bill aims to increase the minimum property damage liability coverage from $5,000 to $25,000 per accident, marking a substantial shift in the state’s auto insurance landscape.

If enacted, this proposed change will apply to all auto insurance policies issued or renewed 60 days after the bill becomes law. Insurance companies operating in Pennsylvania will be required to revise existing policies, update coverage notices, and adjust pricing structures to comply with the new minimum coverage limits. The legislation focuses specifically on property damage liability, enhancing the financial protection available to drivers in the event of an accident.

In addition to raising coverage limits, House Bill 1666 alters how insurers fulfill the state’s definition of “financial responsibility”—the minimum insurance coverage drivers must maintain to legally operate a vehicle in Pennsylvania. Notably, the new regulations will not require insurance companies to secure new signatures from policyholders regarding waivers, tort elections, or benefit selections as a result of the change in property damage liability limits. This provision aims to simplify the transition process for both insurers and policyholders.

Despite the adjustments in property damage liability, the proposed legislation does not affect minimum bodily injury coverage levels or the uninsured and underinsured motorist bodily injury minimums. The essential structure of auto insurance policies in Pennsylvania will remain intact, with the proposed changes focusing solely on property damage increases.

As lawmakers push forward with House Bill 1666, the bill is currently under consideration by both the Pennsylvania House and Senate. Should the bill pass, it would represent a notable development in the state’s auto insurance requirements, potentially providing greater financial security for drivers and victims of accidents.

Insurance companies are being advised to closely monitor the progress of this proposed legislation, as its enactment might necessitate significant operational adjustments and updating of legal documentation. Insurers are also reminded that older notices referencing the previous $5,000 limit will continue to remain valid, ensuring a seamless transition to the new coverage levels.

Currently, Pennsylvania’s auto insurance system allows drivers to choose between different types of coverage, underpinned by the state-mandated minimums for bodily injury and property damage. The current minimum property damage liability coverage of $5,000 has been criticized as insufficient to cover the costs associated with modern vehicle repairs and accidents. This concern has prompted the state’s lawmakers to take action and propose a more substantial minimum to better protect drivers in the event of an accident.

Raising the minimum property damage liability coverage to $25,000 may help ensure that more drivers are adequately insured, thereby reducing the financial burden on victims involved in accidents. Supporters of the bill argue that the increase aligns the state’s insurance standards with inflation and the rising costs associated with vehicle repairs and accidents. Conversely, some critics argue that higher minimums could result in increased insurance premiums for drivers, which may present challenges for those already struggling with financial obligations.

As House Bill 1666 progresses through the legislative process, stakeholders in the auto insurance industry, as well as consumers, will be keenly observing its outcomes. The implications of changes to insurance laws affect not only insurance firms but also the everyday drivers who rely on these policies for financial security while navigating Pennsylvania’s roads.