If You Own a Car in Virginia, Beware of “Opt-Out” Letters: Protecting Your Rights Under Virginia’s New UM/UIM Coverage Law
Virginia’s new Uninsured/Underinsured Motorist (UM/UIM) stacking law, which took effect on July 1, 2023, provides significantly enhanced protections for auto policyholders. By allowing insureds to “stack” their UM/UIM coverage on top of the at-fault driver’s liability insurance, this law ensures better financial protection for victims of automobile crashes involving uninsured or underinsured drivers.
However, insurance companies are actively attempting to reduce your coverage by encouraging policyholders to “opt out” of stacking. Many policyholders are now receiving opt-out forms via mail or email when renewing their policies. These forms often offer a modest reduction in premiums in exchange for giving up the crucial benefits of the new stacking law—benefits that could be vital to you or a family member in the event of a crash.
Many auto policyholders may not realize the full implications of giving up this new legal right. Once you sign or e-sign, you’ve opted out, potentially jeopardizing your rights and protections in the event of a crash. Insurance companies have a financial incentive to pay less to those who are injured. We strongly recommend against giving up your rights.
What Happens When You Opt Out?
By opting out, your UM/UIM coverage reverts to the pre-July 2023 “anti-stacking” law. This means:
- Reduced Financial Resources: In the event of an accident with an uninsured or underinsured driver, you lose the ability to stack your coverage, potentially leaving you with inadequate compensation for medical bills, lost wages, and other damages.
- Increased Financial Risk: Insurance companies have a financial incentive to reduce claims exposure, which could leave you unprotected when you need it most.
How to Protect Yourself
- Don’t Rush to Sign: If you receive an opt-out form, read it carefully. Remember, you are not obligated to sign it.
- Consult a Legal Professional: If you’ve already signed an opt-out form or are unsure about your rights, contact us. We’re happy to help you navigate this and ensure your rights are protected.
Need Help?
At Blankingship & Keith, we are committed to protecting the rights of Virginia drivers. If you have questions about your UM/UIM coverage or need help navigating your insurance policy, contact us today. We’re here to help you understand your options and ensure you’re fully protected.