Virginia's New UM/UIM Law: An FAQ on Policies, Renewals, and Elections
Since Virginia's underinsured motorist reform took effect on July 1, we have fielded a steady stream of the same questions — from clients, from referring lawyers, and from people who just received a puzzling election form from their insurer. Fair enough: the new law is a genuine improvement, but for the next year Virginia is running two UM/UIM systems side by side, and which one applies to your crash depends on paperwork most people never read. Here are the answers, in plain English.
Q: What changed on July 1, 2023?
For auto policies issued or renewed on or after July 1, 2023, underinsured motorist (UIM) coverage pays in addition to the at-fault driver's liability insurance. The old "offset" — which subtracted the at-fault driver's payment from your own UIM limits, frequently reducing them to zero — is abolished as the default. We walked through the before-and-after math, with a table, in our July post on the reform.
Q: Does the new law apply to me right now?
Only if your policy was issued or renewed on or after July 1, 2023. The law did not rewrite existing policies mid-term; it changes each policy at its next issuance or renewal. Most Virginia auto policies run six or twelve months, so nearly everyone will roll into the new system by mid-2024 — but until your renewal date passes, the old offset rule still governs your coverage.
Q: I was hit last week. Which rule applies to my claim?
The rule embedded in the policy that was in force on the crash date. A crash in October 2023 under a policy renewed in August 2023 gets the new stacking rule. The same crash under a policy renewed in June 2023 gets the old offset. This single fact can change a recovery by six figures, which is why the declarations page and renewal history are now among the first documents we collect in every Virginia crash case.
Q: My insurer sent me a form about "electing" my coverage. What is it?
Under the amended statute, stacking is the default — but the named insured can affirmatively elect old-style offset (reduced) UIM coverage, typically in exchange for a somewhat lower premium. That election must be a knowing, written choice. Our candid view: the offset election gives back the single most valuable improvement in Virginia auto coverage in decades, usually for modest savings. Read anything your insurer asks you to sign at renewal time carefully, and understand what you are giving up before you sign it.
Q: What is the difference between UM and UIM again?
- Uninsured motorist (UM) coverage protects you when the at-fault driver has no insurance at all — or cannot be identified, as in a hit-and-run, where Virginia lets you proceed against a "John Doe" defendant through your own carrier.
- Underinsured motorist (UIM) coverage protects you when the at-fault driver has insurance, but not enough. The July 1 reform is about UIM — the offset was the mechanism that gutted it.
Both coverages ride on your own policy, and in Virginia your UM/UIM limits generally match your liability limits unless you select otherwise.
Q: Does this change what limits I should buy?
It changes what your limits are worth. Under the old law, buying higher UIM limits often bought little — the offset consumed the increase whenever the other driver carried decent coverage. Under the new law, every dollar of UIM you purchase is a dollar of real protection stacked on top of the at-fault driver's coverage. When your renewal arrives, treat the UM/UIM line as what it now is: the most important coverage decision on the page. Serious injuries routinely cost multiples of Virginia's minimum limits, and the only insurance you control is your own.
Q: Do these rules apply to motorcycles and other vehicles?
The reform amended the UM/UIM provisions of Virginia's insurance code generally, so motor vehicle policies of the familiar kinds carry it at issuance or renewal. Whatever you ride or drive, the same question controls: when was the policy issued or renewed?
What this means for injured people in Virginia
Three practical rules of thumb. First, after any serious crash, pin down every potentially applicable policy — yours, the at-fault driver's, resident relatives' policies — and their renewal dates, because the two-regime transition will be generating coverage disputes well into 2024. Second, do not accept an adjuster's offset math without checking which law governs; mistakes in the insurer's favor are not rare. Third, at renewal, decline the offset election unless you have a considered reason to take it, and give real thought to raising your limits now that they mean what they say.
The offset's demise was a long time coming. Make sure your own paperwork lets you benefit from it.
If you or a loved one has been hurt, call Posey Lebowitz at (202) 524-0123 or send us a message for a free consultation.
Part of our DMV case law archive, compiled in 2026 to reflect the archive of some of the most important decisions in injury law.