Virginia drivers gained a powerful new protection in 2023 when the state legislature fundamentally changed how uninsured and underinsured motorist coverage works. The change allows injured drivers to add their own underinsured motorist (UIM) coverage on top of the at-fault driver’s liability coverage, often increasing the total funds available to pay medical bills and other losses. This update removed the old “offset/credit” that used to reduce UIM benefits unless the policyholder elects otherwise in writing.

The change came at an important moment. Estimates put Virginia’s uninsured-driver rate at about 12.1% (2022). And while Virginia began requiring drivers to carry insurance starting July 1, 2024, uninsured and underinsured crashes still happen, making UM/UIM coverage choices especially important. Those who suffer serious injuries in Gloucester County and throughout Virginia should consult experienced Gloucester County car accident attorneys to understand how the new stacking rules apply to their situation.

What Does Stacking Mean in Car Insurance?

Stacking refers to combining insurance coverage from multiple policies to increase the total amount available to pay a claim. In this context, “stacking” means adding the at-fault driver’s liability coverage and the victim’s underinsured motorist (UIM) coverage together, so the UIM benefits aren’t reduced by the at-fault driver’s limits unless the policyholder opts out in writing.

Before July 1, 2023, Virginia’s UIM rules often allowed insurers to reduce what they paid by applying a liability “credit” (offset). For policies issued or renewed after July 1, 2023, UIM coverage is generally paid without that credit, unless a named insured signs an election to reduce UIM payments. The 2023 amendment to Virginia Code Section 38.2-2206 eliminated this reduction and authorized true stacking for the first time.

How Virginia’s Old Law Limited Coverage

The previous underinsured motorist rules created situations where victims received less money than their policies suggested. An injured driver with one hundred thousand dollars in underinsured motorist coverage might recover only twenty thousand dollars after an insurance company applied the old offset rules. The system penalized victims for buying higher coverage limits.

Consider a common scenario under the old law. A driver purchased fifty thousand dollars in underinsured motorist protection, believing this coverage would help if someone with minimal insurance hit them. When an at-fault driver with thirty thousand dollars in liability coverage caused an accident, the victim discovered their underinsured policy would pay only twenty thousand dollars. The insurance company subtracted the thirty thousand from the fifty thousand, leaving a much smaller benefit than expected.

How the 2023 Law Changed Everything

The Virginia Code Section 38.2-2206 now requires insurance companies to pay underinsured motorist benefits without reducing them by the at-fault driver’s coverage. This change applies to all policies issued or renewed after July 1, 2023. In practice, the new rule can significantly increase the total insurance funds available in serious-injury claims when the at-fault driver’s limits are too low.

The practical effect is straightforward. A victim with fifty thousand dollars in underinsured motorist coverage who gets hit by a driver with thirty thousand dollars in liability coverage can now receive eighty thousand dollars total. The at-fault driver’s policy pays thirty thousand, and the victim’s underinsured policy pays the full fifty thousand. Both amounts stack together rather than canceling each other out.

When Does Stacking Apply to Your Accident?

Stacking becomes relevant when the at-fault driver carries insurance but not enough to cover all damages from the accident. This situation arises frequently because Virginia’s minimum insurance requirements, while recently increased, still fall far below the cost of serious injuries. For policies effective on or after January 1, 2025, Virginia’s minimum liability limits are $50,000 per person / $100,000 per accident for bodily injury, plus $25,000 for property damage.

Many Virginia drivers carry only these minimum limits. A crash victim with significant injuries often faces medical bills, lost income, and other expenses exceeding fifty thousand dollars. Without underinsured motorist coverage that can stack with the at-fault driver’s policy, recovery becomes incomplete. The stacking provision ensures victims can access the full value of coverage they purchased.

Exceptions and Limitations to Stacking

Virginia law permits policyholders to opt out of the stacking provision. Insurance companies must notify customers about this option and can only accept an opt-out election in writing. Once any named insured on a policy chooses to opt out, that decision binds all other insureds under the same policy. The opt-out typically reduces insurance premiums slightly.

However, opting out sacrifices substantial protection for minimal savings. Virginia personal injury attorneys consistently advise clients to maintain the stacking benefit rather than accept small premium reductions. The potential difference in compensation after a serious accident far exceeds any premium savings over time.

Impact on Settlement Values and Litigation

The stacking law has altered negotiations between accident victims and insurance companies throughout Virginia. Cases that previously settled for policy limits now have access to additional coverage through stacking. Because more coverage may be available in qualifying cases, the change can affect how claims are evaluated and negotiated, especially when injuries exceed the at-fault driver’s limits.

Because the issue is governed by Virginia insurance statutes and policy language, insurers and claimants often focus on (1) which policy forms apply, (2) whether the policy was issued/renewed after July 1, 2023, and (3) whether any named insured signed an election that changes how UIM is calculated.

What Gloucester County Accident Victims Should Know

Virginia’s stacking law provides meaningful protection for accident victims across the Commonwealth. The combination of increased minimum coverage requirements and the ability to stack policies means many injured drivers now have access to one hundred thousand dollars or more in total coverage. This represents a dramatic improvement from the previous system.

If you suffered injuries in an accident caused by an uninsured or underinsured driver, understanding how stacking applies to your case becomes essential. The new law creates opportunities for better compensation, but only if you know how to properly present your claim. A knowledgeable car accident attorney can evaluate the available coverage, determine whether stacking applies, and pursue the maximum compensation available under both the at-fault driver’s policy and your own underinsured motorist coverage.