In Virginia, insurance companies cannot increase your premiums if you make a claim under your uninsured motorist coverage. These claims are not based on your fault but on another driver’s negligence. This fundamental principle of insurance law exists to protect the rights of policyholders and ensure that they aren’t financially penalized for circumstances beyond their control.
What Is Uninsured Motorist Coverage?
Uninsured motorist (UM) coverage is an essential part of your car insurance policy. This coverage offers financial protection when you suffer injuries in an accident with a driver who does not carry any car insurance or enough insurance to cover your losses. It steps in to cover costs related to injuries you suffer or damage to your vehicle.
Essentially, UM coverage acts as a financial safety net when the at-fault driver’s insurance cannot pay for your losses. The provision also extends to hit-and-run accidents where the authorities cannot identify the at-fault driver. Uninsured motorist coverage ensures that you are not left to shoulder the financial burden of an accident that another party’s negligence caused. This coverage is vital as it ensures that you have some financial protection if an uninsured driver hits you or you are involved in a hit-and-run incident.
Is Uninsured Motorist Coverage Required in Virginia?
Virginia law requires all auto insurance policies to include uninsured motorist coverage. Under Va. Code § 38.2-2206, the minimum limits for this coverage are currently:
- $30,000 for bodily injury per person
- $60,000 for bodily injury per accident
- $20,000 for property damage per accident
However, these limits are set to increase. Va. Code § 46.2-472 states that for a policy effective after January 1, 2025, the limits for this coverage will go up to:
- $50,000 for bodily injury per person
- $100,000 for bodily injury per accident
- $25,000 for property damage per accident
Does Virginia Have a Law to Prohibit My Insurance Company from Raising My Rates After An Uninsured Motorist Claim?
According to VA Code 38.2-1905, an insurer cannot raise your rates for making a claim against your uninsured motorist coverage. This law is in place to protect you, the policyholder, from facing financial penalties for an accident that was not your fault.
Can My Insurance Company Raise My Rates If the Accident Was My Fault?
Your insurance company has the right to raise your rates if you are at fault in a car accident. This increase is due to the perceived higher risk of insuring you. Insurers calculate premiums based on various factors, including your driving history. If you are at fault in an accident, insurance companies consider you more likely to cause another accident in the future – increasing the risk to your insurer.
The degree of the rate increase often depends on the severity of the accident and any resulting claims. It is also worth noting that a rate increase will not happen immediately after an accident but typically upon your policy’s renewal.
If your insurance company plans to increase your rates after an accident, it must notify you in writing first. Even then, you can appeal the decision to the Commissioner of Insurance if you feel that your rate has been increased without just cause, but the appeal must be done within 60 days of receiving notice of the increase (Va. Code § 38.2-1905).
Can My Insurance Company Refuse to Renew My Policy If I Make an Uninsured Motorist Claim?
Your insurer cannot refuse to renew your policy solely because you made an uninsured motorist claim. Under Virginia law, insurance companies cannot penalize you for claims filed under your uninsured motorist coverage because these claims compensate you for an accident another party has caused.
What If My Insurance Company Refuses to Pay My Uninsured Motorist Claim?
If you encounter a situation where your insurance company refuses to pay your uninsured motorist claim, it is crucial that you reach out to a Virginia car accident lawyer right away. It could be a case of bad faith insurance, which means your insurance company is not upholding its legal obligation to you. A skilled attorney can meticulously review your claim and help you fight back.
Your attorney can further engage with your insurance company, presenting evidence and arguing on your behalf. They can aggressively negotiate with the insurance company to demand the payout you deserve. If negotiations fail, your lawyer can take the matter to court. They can use their knowledge and skill to advocate for your rights and fight for the full and fair compensation you deserve.
Remember, when you purchase an insurance policy, you enter into a contract with the insurer. They must honor their obligation to provide coverage as outlined in the policy. If they fail to do so, you have every right to challenge their decision and fight for what is rightfully yours.
Contact a Virginia Car Accident Lawyer
Suffering injuries in a car accident can be a traumatic and overwhelming experience, especially when the at-fault party is uninsured or underinsured. Fortunately, as a policyholder in Virginia, you are protected by your uninsured motorist coverage and state laws that prevent your insurer from unfairly raising your rates or refusing to renew your policy.
If you are facing difficulties with your uninsured motorist claim or need help dealing with your insurance company, the experienced car accident attorneys at Marks & Harrison are here to help. We have over a century of experience representing Virginia drivers in their fight for fair compensation after a car accident. Do not face the complicated process of pursuing insurance claims alone. Contact us today for a free consultation to learn more about how we can help you. Your fight is our fight.
