Revised Auto Insurance Laws in Virginia


Recently, the Virginia Assembly passed laws effecting Auto Insurance Policies issued to Virginia Drivers.

The state of Virginia is now requiring changes to underinsured motorist coverage and has revised the applicable statute, VA Code section 38.2-2206. Changes will start for all new and renewal policies on July 1, 2023. Through this amendment, damages caused by an accident with an underinsured motor vehicle will now be paid in addition to any bodily injury or property damage liability coverage available for payment. 
 
A named insured may decline this change in coverage and select Underinsured Motorist Coverage (Alternative Coverage). Under the Alternative Coverage, damages caused by an accident with an underinsured motorist may be reduced by bodily injury or property damage liability coverage available for payment. If you choose to decline the change in coverage and instead elect the Alternative Coverage, a named insured must sign the Virginia Underinsured Motorist Coverage (Alternative Coverage) Election Form. This change is effective with new and renewal policies effective on or after 7/1/2023 for both Personal Lines and Commercial Lines.
 
Please feel free to reach out to us with any of your questions. This broadening of coverage will automatically be incorporated into your renewal policies. If you choose to decline this coverage, we will need your signature on the declination form. Thank you for your business. 

Comments

Post a Comment

Popular posts from this blog

Inflation: A Pickle for Property Insurance

Image
All of us are feeling the grip of inflation. Building materials costs have spiked over the last 2 years. Supply chain disruptions and labor shortages are causing major delays in construction projects. As a result, it now costs more to rebuild your home than it did before.    When was the last time that you checked your policy limits? Are they high enough to cover a 26% increase in building costs? If not, then you have to pay the difference out of pocket.   Hanover Insurance Company shared some of the numbers behind inflation in a recent  post .  They recommend that policyholders consider   Increasing coverage to avoid potential gaps in the current market Include the cost of any recent renovations in your policy limits Consider higher deductibles to help offset the cost of policy limit increases   The insurance industry is working to help policyholders stay ahead of the curve. Many carriers are running Replacement Cost Estimates on covered properties and adjusting property limits as nee
Read more

WATCH OUR NEW VIDEO SERIES HERE.

Image
  WATCH OUR NEW VIDEO SERIES HERE .  Insurance In An Instant is a video series designed to provide tips and guidance on insurance topics that directly impact our clients. Have questions? Want to see a particular topic? Let us know.  Click here to visit the Channel Page.
Read more