Originally from Blankingship & Keith, PC
This is a good thing, it is just going to cost a bit more.
Peggy Claytor
Virginia recently passed a law to improve insurance coverage for automobile policies. The change will take effect in the UM/UIM coverage of all policies issued or renewed after July 1, 2023.
“UM/UIM†stands for “uninsured/underinsured†and is often shortened to just “UIM.†UIM coverage provides you with additional insurance coverage if you are injured in an accident when the person who caused the accident does not have enough liability insurance coverage to pay for your damages. UIM coverage has a limit, which is the maximum amount that it will pay out. You choose what your limit is when you buy your policy.
The new law changes UIM coverage so that both parties’ coverage is added, or “stacked.†In our example, instead of subtracting, you would get the full amount of your $200,000 UIM coverage, which you could add to the other party’s $50,000 limit for a total of $250,000. (This assumes that the value of your claim is worth this much.) As you can see, stacking provides a huge benefit if you are injured in a car crash by providing more coverage for your medical expenses, lost wages, pain, and mental anguish. By electing to reduce your premium, your policy will revert to the pre-July 2023 “anti-stacking†law, and you will have given up resources that you may need in the event of an accident.
