New Underinsured Motorist Coverage for Auto Insurance Signed into Law

On Monday, April 11, 2022, Governor Youngkin signed into law Senator Mark Obenshain’s SB 754-UIM.  The language of the bill and the full legislative story is here:

Senator Obenshain’s bill allows consumers to finally get what they paid for—full coverage under their underinsured motorist coverage portion of their auto insurance policies.

Why is this important? And when does underinsured motorist coverage come into play?  Usually you need it when you have been seriously hurt in a car wreck.

Currently, if you purchased $100,000 in UIM coverage and you are injured by an at fault driver with only $50,000 in coverage, your carrier gets a credit for the $50,000 from the at fault driver’s policy and your total limit of recovery is $100,000:  $50,000 from the at fault driver’s policy and $50,000 from your company (since they get a credit of $50,000 off your coverage of $100,000).  This amount may seem fair unless you have huge medical bills and perhaps lost wages and the value of your case is closer to $150,000.

After SB754-UIM goes into effect on July 1, 2023, the same set of facts allows you to collect $50,000 from the at fault driver and $100,000 from your carrier (the amount you paid for), for a total recovery of $150,000.  SB 754 provides that an insurance carrier NOT get a credit for payments made by the at fault driver’s company and that you, the consumer, be able to collect the full amount of your car’s UIM coverage.

This new law will make a huge difference in the lives of our clients, many of whom were unable to be fully compensated for their injuries due to the limits of insurance involved on behalf of all drivers.

Be sure you and your loved ones have enough coverage in the event someone in your family gets hurt in a car wreck and incurs medical bills and, perhaps lost time at work.  It is no fun to be injured, in pain, and without a full remedy.  Contact us today at 703-777-6535 or send me an email [] if you want a free review of the amount of auto insurance coverage you have on cars located in Virginia—you may thank us later!


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