Important Changes to Underinsured Motorist Coverage for Virginia Policyholders

Effective July 1, 2023, Virginia law has been amended to require an increase in uninsured/underinsured motorist (UM) coverage. This change has been mandated state-wide for all auto insurers providing service in Virginia.

In general, Uninsured/Underinsured Motorist Coverage covers damages caused by an at-fault driver who is uninsured or doesn’t have enough liability coverage to cover all the damages from the accident.

What does the mandated increase in UM coverage mean for auto policyholders in Virginia?

Previously, your underinsured motorist coverage paid damages to an insured only after any credit of the bodily injury or property damage liability coverage applicable to the insured’s damages had been paid (by an at-fault third party or otherwise)

After July 1, 2023, both new business and renewal policies are required to provide underinsured motorist coverage that pays any damage due to an insured in addition to any bodily injury or property damage liability that is applicable to the insured’s damage (paid by an at-fault third party or otherwise). This is an increase to the UM coverage provided prior to July 1, 2023.

Due to the increase in coverage with this mandated change, Virginia policyholders may also see an increase in premium cost associated with uninsured and underinsured motorist coverage after July 1, 2023. You may elect to refuse this change to your UM coverage and keep current coverage offerings, which will commonly be referred to as “basic” or “alternative” UM coverage moving forward. This request of refusal must be put in writing and can be completed by signing a waiver of acknowledgement that Elephant will provide upon request to refuse increased UM coverage.

How do I determine if I want to keep the new increased coverage or request refusal so I can maintain my current basic coverage?

Before electing to decrease your UM coverage, you should carefully consider that this coverage provides important protection in the event of accident due to damages caused by an underinsured motorist. When weighing your options, reviewing the below example may be helpful.

After careful consideration, and you wish to refuse increased UM coverage from your new business or renewal policy with Elephant, you may do so by logging in to your online account and chatting with a licensed agent, or by calling our Customer Care Department at (877) 218-7865 between the hours of 8 a.m. to 6 p.m. Monday through Friday.

Example Scenario:

Basic (Alternative) Underinsured Motorist Coverage:

Effective July 1, 2023, to all new business and renewal policies only when a waiver of refusal for increased coverage has been provided in writing.

For example, if the at-fault driver’s Bodily Injury Limit is $50,000/$100,000 and the insured has purchased Uninsured/Underinsured Motorist Bodily Injury coverage with a limit of $100,000/$300,000, the total amount of protection available under all sources of recovery to the insured is $100,000/$300,000.

Increased (New) Underinsured Motorist Coverage:

Standard coverage applied to all new business and renewal policies effective July 1, 2023, unless refused in writing.