In Virginia, as in other states, uninsured/underinsured motorist coverage (UM/UIM) serves as a safety net for an accident victim when an at-fault driver lacks sufficient liability insurance to pay compensation for the victim’s medical expenses, lost wages and other damages. Now, Virginia has passed a law that significantly expands the insurance funds available in those situations.

Virginia’s previous law had limited the total recoverable amount to the higher of the two policies. But the new law, which took effect July 1, 2023, removes this cap. The result is that policyholders can now collect the full amount of their UM/UIM coverage in addition to any payments from the at-fault driver's liability policy.

This change is of major importance, since many drivers carry only the minimum levels of liability coverage required by state law, which can be quite low. For example, in Virginia, the minimum bodily injury liability coverage required is $30,000 per person and $60,000 per accident. (Those limits will increase in 2025 to $50,000 per person and $100,000 per accident.) The damages suffered in a car crash can be far greater. The new law provides a cushion by allowing victims to add in their UM/UIM benefits.

The new law also allows for “stacking” of UM/UIM coverage on multiple vehicles insured under the same policy. If a driver has two vehicles that each carry $100,000 in such coverage, those lines can be combined to provide a total of $200,000 in funds available for a single accident.

In addition, the new law redefines the term "underinsured motorist." Previously, the at-fault driver was deemed underinsured if their liability coverage fell below the injured party's UM/UIM coverage. Now, that driver is considered underinsured if their liability coverage is insufficient to cover the injured party's total damages, irrespective of the victim’s UM/UIM limits.

The law allows policyholders to opt out of the expanded coverage and thereby save on total premiums. However, this can be a costly mistake. The savings on premiums will be minor, whereas the lack of the law’s increased protection can be financially ruinous after an automobile accident.

In fact, the new law requires insurance companies to give policyholders the option to purchase higher UM/UIM limits to further bolster their protection. Although UM/UIM coverage is mandatory in Virginia, there is no set minimum required. The amount of coverage you need depends in part on what other insurance you may have, such as health and hospitalization coverage. Now more than ever, it makes sense to pay a slightly higher premiums for the security of substantial UM/UIM coverage.

At Pikrallidas & Probasco, our aggressive and compassionate attorneys focus on winning compensation for people hurt in auto accidents. We have offices in Fairfax, Manassas, Centreville and Front Royal to serve Virginia and Washington, D.C. residents. Please call us at 703-267-2600 or contact us online for a free consultation.