Virginia’s auto insurance laws changed in 2024, especially when it comes to underinsured motorist (UIM) coverage. These changes affect how your insurance works if you’re injured in an accident with someone who doesn’t have enough coverage. In this post, we’ll explain how these changes impact you and why having more than the state’s minimum coverage is crucial.
Understanding the 2024 Changes to Virginia’s Insurance Laws: Why You Need More Than the Minimum
What Was the Old Rule for UIM Coverage?
Under the old law, if you were in an accident with a driver who had the minimum liability insurance (previously $30,000 per person and $60,000 per accident), your UIM coverage would be reduced by that amount. For example, if you had $100,000 in UIM coverage and the at-fault driver had $30,000 in liability coverage, you would only receive $70,000 from your UIM policy (after the offset).
What Changed in 2024?
In 2024, Virginia removed the offset rule for UIM coverage. Now, if you’re in an accident with an underinsured driver, you can collect your full UIM coverage, regardless of the other driver’s insurance.
Here’s how it works under the new law:
- Old Rule Example: If the at-fault driver had $30,000 in liability insurance and you had $100,000 in UIM coverage, you could only recover $100,000 total.
- New Rule Example: If the at-fault driver still has $30,000 in liability insurance, you can recover the full $100,000 from your UIM coverage, plus the $30,000 from the other driver’s insurance for a total of $130,000.
This change increases the coverage available to you and helps make up the difference when the other driver’s insurance isn’t enough.
The State Minimum Limits Changed in 2025
Until January 1, 2025, the state minimum liability insurance limits were $30,000 per person and $60,000 per accident. But for policies written or renewed on or after January 1, 2025, the state minimum limits have increased to $50,000 per person and $100,000 per accident. While this is a step forward, it’s still not enough for serious accidents, and that’s where UIM coverage is so important.
Why You Need More Than the State Minimum Coverage
Even with the higher minimums starting in 2025, they may not cover all the costs after a serious accident. Medical bills, lost wages, and pain and suffering can add up quickly. For example:
- Accident Scenario: You’re in an accident with someone who has the new 50/100 coverage, and you have $100,000 in UIM coverage.
- Your total costs are $150,000.
- The at-fault driver’s insurance covers $50,000, but you still have $100,000 in costs that need to be covered by your UIM insurance.
Without enough UIM coverage, you could be left with a significant financial gap.
