Navigating the New Virginia Underinsured Motorist Law: What You Need to Know

In May 2023, Virginia enacted a significant update to how underinsured motorist (UIM) coverage works in the state. The law has now been in effect for several years and remains one of the more meaningful consumer-protection changes to Virginia auto insurance in recent memory. If you drive in Virginia — or insure vehicles there — here’s what changed and why it matters.

Background: Virginia’s Minimum Limits

Virginia requires drivers to carry minimum liability coverage of $30,000 per person / $60,000 per accident for bodily injury, and $20,000 for property damage. Uninsured motorist coverage in matching amounts is also required. These minimums represent a floor, not a recommendation — a serious accident can generate damages well above these limits, leaving the injured party with significant out-of-pocket exposure if the at-fault driver carried minimum coverage.

What the 2023 Law Changed

Stacking of UIM Coverage

The law introduced “stacking” for UIM coverage. Stacking allows policyholders to combine the UIM limits across multiple vehicles insured under the same policy. If you insure two vehicles, each with $50,000 in UIM coverage, stacking gives you access to $100,000 in total UIM protection for a single accident. This significantly improves coverage for multi-vehicle households.

Mandatory Offer of Higher Limits

Insurers are now required to offer Virginia policyholders the option to purchase higher UIM coverage limits. This ensures drivers have a clear opportunity to strengthen their protection — and that insurers can’t simply issue minimum-limit policies without offering the alternative.

Revised Definition of “Underinsured Motorist”

Under the old law, a driver was only considered “underinsured” if their liability coverage was less than the injured party’s UIM coverage limit — which often meant UIM coverage didn’t trigger even when the at-fault driver’s limits were genuinely insufficient. The new law defines “underinsured” based on whether the at-fault driver’s coverage is less than the injured party’s total damages. This is a more practical and fair standard that makes UIM coverage actually available when it’s needed.

What This Means for Your Policy

If you insure vehicles in Virginia and haven’t reviewed your UIM limits since 2023, it’s worth doing so. The combination of stacking availability and the revised definition means that higher UIM limits are more accessible and more likely to pay out when they matter. Capitol Benefits works with Virginia drivers to make sure their policies reflect these changes. Contact us for a coverage review.