Amy Gore—Senior Attorney
New changes in Virginia Underinsured Motorist (“UIM”) insurance laws went into effect July 1, 2023, that make a significant change in the benefits available to injured claimants.
Previously, all auto policies issued in Virginia calculated the amount of UIM coverage available to an injured claimant by subtracting the amount of available liability coverage from an insured’s stated UIM limits. Assuming there was any difference, the reduced sum would comprise the UIM coverage available to an injured claimant. Only those insureds with UIM limits greater than the tortfeasor’s liability limits would ever recover for the benefits they purchased. The new amendment to Va. Code Ann. § 38.2-2206(C) now will
REQUIRE INSURERS TO PROVIDE UNDERINSURED MOTORIST COVERAGE THAT PAYS ANY DAMAGES DUE TO AN INSURED IN ADDITION TO ANY BODILY INJURY OR PROPERTY DAMAGE LIABILITY THAT IS APPLICABLE TO THE INSURED’S DAMAGES.
2022 Va. ALS 308, 2022 Va. Acts 308, 2022 Va. Ch. 308, 2022 Va. SB 754.
Injured claimants may then combine or “stack” the available liability limits with their own UIM limits to compensate their damages. The insurers are permitted to charge more for the greater coverage, and, consequently, insureds must receive a proper notice of the optional increase in coverage and the right to refuse the increased coverage in writing.
