Uninsured Motorist Coverage in Virginia

Like any other state, Virginia’s laws can change, and you may not know of changes that affect you. A recent change has already taken effect, impacting all licensed drivers in the state. The new law modifies how uninsured motorist coverage and UIM policies work, so it is essential that you are aware of the changes if you ever need to make an insurance claim.

If you’re worried about your auto insurance coverage or want to get coverage, it’s vital to know the new law’s implications. Fortunately, the experienced accident attorneys at Montagna Law are happy to help with Virginia’s ever-evolving legal landscape. Reach out to our team for a free consultation and legal advice to get started.

What is the New Virginia Law on Uninsured Motorist Coverage?

As of July 1, 2024, Virginia implemented significant changes to its vehicle insurance laws, particularly regarding uninsured motorist coverage. The Commonwealth now requires all drivers to have auto insurance, eliminating the previous option to pay a $500 uninsured motorist fee.

The state mandates that all auto insurance policies include uninsured/underinsured motorist (UM/UIM) coverage in the same amount as your liability coverage.

Starting January 1, 2025, the minimum liability coverage requirements in Virginia increased to:

• $50,000 per person for bodily injury
• $100,000 per accident for bodily injury
• $25,000 per accident for property damage

The state implements severe penalties on those driving without insurance, including suspension of your driver’s license and registration privileges, a fine of $600 for noncompliance, and a reinstatement fee of $145. You must also file proof of insurance (SR-22) for three years.

How This Law Benefits Virginia Drivers

These changes should reduce the number of uninsured drivers on Virginia roads. Current estimates place that number at 11%. The state expects the new law to make it easier for people to recover compensation for injuries after a crash, since there should be fewer uninsured drivers on the roads. Additionally, the increased minimum coverage limits that became effective January 1, 2025, provide greater financial protection for Virginia motorists in the event of a wreck.

Should I Opt Out of This Update if My Insurance Company Calls Me?

An insurance agent may try to persuade people to skip this update since it doesn’t help them. It is not in your best interest to opt out.

Related Article: Virginia’s Latest Uninsured Motorist Reforms for 2024

Will This New Law Be Automatically Applied to My Coverage?

The new Virginia car insurance law does not automatically go into effect on existing policies immediately. For policies issued or renewed after January 1, 2025, insurance companies must automatically implement the law, including mandatory insurance coverage and eliminating the uninsured motorist fee option.

Policies issued before July 1, 2024, will see changes upon renewal, typically within six months. Starting January 1, 2025, all policies must meet the new minimum liability coverage requirements of 50/100/25. Insurance companies are responsible for updating policies to comply with the new law upon renewal, but it is advisable to review your policy to confirm it meets the new requirements.

Additionally, the Virginia Department of Motor Vehicles will verify insurance information for registered vehicles, and noncompliance will result in penalties.

What is UM/UIM Coverage in Virginia?

Uninsured motorist (UM) coverage is car insurance that protects you if the other party in an accident is uninsured. Meanwhile, underinsured motorist insurance, or UIM, is utilized when the other party’s liability insurance does not reach the coverage limit you need for damages like bodily injuries sustained in the accident.

Typically, the not-at-fault party relies on the at-fault party’s insurance to cover the damages, so UM/UIM coverage fills in the gaps should the at-fault individual not have the proper insurance to cover all the damages. For example, if you suffered $50,000 worth of damages in an accident and the at-fault party only has $30,000 worth of insurance coverage, you could pursue your underinsured motorist coverage for the remaining $20,000.

How Does Uninsured Motorist Coverage Work in Virginia?

Uninsured motorist coverage protects you if you are in an accident with an uninsured driver or a hit-and-run driver. Due to the law that went into effect in July 2023, stacking allows policyholders to combine or “stack” their UM/UIM coverage on top of the at-fault driver’s liability insurance, increasing the total coverage.

For example, if an at-fault driver has $50,000 in liability coverage and the victim has $100,000 in UM/UIM coverage, stacking allows for a total of $150,000 in available coverage instead of just $100,000 under the old law.

What is the Minimum Amount of Uninsured Motorist Coverage in Virginia?

As of 2025, the minimum amount of coverage for an uninsured motorist in Virginia is:

• $50,000 per person for bodily injury or death
• $100,000 per accident for bodily injury or death
• $25,000 per accident for property damage

These limits match the state’s minimum liability insurance requirements, which went into effect on January 1, 2025. Virginia law mandates that all auto insurance policies include uninsured/underinsured (UM/UIM) coverage in the same amounts as the liability coverage.

How Do I File a Claim With My Uninsured Motorist Coverage in Virginia?

To file a claim on your uninsured motorist insurance policy, take the following steps:

• Contact your insurance company immediately after the accident to report the incident and initiate the claim process.
• Gather and submit all relevant documentation, including the police report, medical records, repair estimates, and any evidence of lost wages.
• Cooperate with the insurance company’s investigation, providing additional information as requested.
• Review your policy carefully to understand the coverage limits and what expenses are eligible for compensation.
• Evaluate the settlement offer from the insurance company and negotiate if it seems insufficient.
• Consider seeking legal advice if you encounter difficulties with the claim or feel the settlement is inadequate.

Related Article: Virginia Car Accident Claim Compensation Guide

Were You Recently in an Accident and Wondering How These Laws Impact You?

These new laws may have already impacted your insurance policy, even if you were not explicitly made aware of it. The details of insurance policies can be complex and difficult to understand, and insurers prefer this because it means you are less likely to take advantage of what these policies can offer. Montagna Law is dedicated to helping you receive the benefits of the insurance policies you have paid for. If you are in the process of a Virginia personal injury claim and are unsure of how to proceed while medical bills are increasing, Montagna Law is happy to help, beginning with a free consultation.

Why Work With Montagna Law

After an accident, retain an experienced Virginia personal injury lawyer to guide you through the process of recovering damages. Verify the law firm has experience with handling motor vehicle insurance claims, such as the attorneys at Montagna Law, as not all personal injury lawyers are car accident attorneys.

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Confused About Insurance Laws? Let Our Virginia Car Accident Lawyers Help.

If you are confused about Virginia’s new insurance laws or you were involved in a vehicle accident, call us today at 757-622-8100 or contact us online.