Virginia Tweaks Underinsured Motorist Coverage

Virginia Tweaks Underinsured Motorist Coverage

For as long as we can remember, underinsured motorist coverage only pays if your insurance policy had higher coverage limits than the person who caused your damages.  As the law reads now: if you carry $100,000 of injury coverage, and someone hits you who carries the state minimum of $30,000, your policy will cover up to the difference of $70,000.  Under the new law taking effect July 1, 2023, you would have up to $100,000 available under your own policy after the at-fault policy pays its limit of $30,000.  This tweak in the law will obligate your insurance company to pay damages up to your underinsured motorist coverage (both injury and property) without any credit for the coverage available from the at-fault party.

This may prove especially important if your property is damaged by an at-fault motorist who carries the state minimum of $20,000 in property damage liability insurance.

Governor Youngkin approved the bill on April 11, 2022.  It will take effect July 1, 2023.

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