Bill > H863

This bill proposes changes to how certain car accidents are classified for insurance purposes, specifically impacting safe driver insurance plans, which are designed to reward drivers with good records and penalize those with poor ones. The key provisions aim to redefine what constitutes a "major accident" and a "minor accident" for at-fault claims. A major accident will now be defined as one where the insurance claim payment, not including any deductible, exceeds $3,000 for property damage, collision, or limited collision coverage, and for accidents after January 1, 2006, also for bodily injury coverage if there isn't a surchargeable property damage or collision claim. Conversely, a minor accident will be defined as one where the claim payment, excluding the deductible, is between $1,000 and $3,000 for the same types of coverage. These changes are intended to adjust the financial thresholds that trigger surcharges, which are additional fees added to insurance premiums for drivers deemed to be higher risk due to accidents or violations.