By Jordan Heath, Heather Verser
We all know that car crashes can lead to significant and life-altering injuries. With every crash, you would hope the at-fault driver, or defendant, has sufficient liability insurance coverage. All Virginia automobile liability insurance policies effective on or after January 1, 2025, are required to have at a minimum 50/100/25 coverage. For such a policy, a person injured by another driver can recover up to $50,000 in insurance money for bodily injury. If there are multiple victims, the insurance will only cover up to $100,000 in bodily injury coverage for the whole collision, subject to the per-person limit. The remaining $25,000 is for property damage. These minimal limits policies are hardly enough compensation. This is why it is recommended clients obtain at a minimum of 100/300/50 coverage.
Drivers with minimum or low-dollar policies are the risk that the rest of us must guard against. You can protect yourself and your family with Uninsured/Underinsured Motorist Coverage (“UIM”). This is the type of coverage that kicks in when you have been injured, and the at-fault driver does not have sufficient coverage for your injuries.
This UIM coverage is distinct from your own liability coverage. Liability coverage comes into play when the other driver sues you. You don’t get to tap into your liability coverage when you are injured by another driver. Having adequate UIM coverage is just as important as having adequate liability coverage, so do not reject, waive or agree to reduce your UIM coverage. Virginia law requires UIM coverage be provided not only under your own policy but also under policies insuring others if they are (1) residents of your household and (2) related to you (including wards and foster children). Boyfriends, girlfriends and fiancés do not count.
It is not uncommon to see people delaying marriage and cohabitating with their partners long-term (or foregoing marriage entirely). Here is a scenario that is becoming all too common: Jack and Jill are unmarried but have been together for years with their two small children. They all live with Jill’s parents. Jack does not have a UIM policy. Jill has a $100,000 UIM policy. Jill’s parents each have a $100,000 UIM policy. Jack gets injured by a driver that has 50/100/25 liability coverage and has virtually no assets. Let’s say Jack’s personal injury case, based on his injuries, would reasonably be valued at $200,000. Sadly, he only has $50,000 in the defendant’s liability insurance coverage that he can pursue. He is afforded no UIM insurance coverage since he does not have his own policy and none of the insured drivers living in his household are related by blood or marriage. However, if Jack and Jill were married before the accident, Jack would have $350,000 available to pursue. Jack could stack the other drivers $50,000 in liability coverage, Jill’s $100,000 in UIM coverage, his father-in-law’s $100,000 UIM coverage and his mother-in-law’s $100,000 UIM coverage. Jack does not have to be a named insured on any of these policies.
There is no cap on the ability to stack UIM coverage. Some people may have more than one policy, which is not uncommon among individuals who own more than one car. A family that sits down together and plans their UIM coverage strategically will find that the “resident relative rule” can be a superpower, when needed.
Should you or a loved one be injured by another driver, it is vital to find an attorney who can identify all available insurance coverage to bring into the case and stack as much coverage as possible.
Jordan Heath is an attorney with Heath Verser and immediate past president of the Newport News Bar Association. Heath Verser is a boutique trial firm with a focus on personal injury cases. Heath can be reached by email at Jheath@heathverser.com or 757-599-0734.
