American Property Casualty Insurance Association: Harmful Legislation That Could Increase Auto Insurance Costs for Virginia Residents Moving in the Virginia General Assembly

RICHMOND, Virginia, Feb. 10 -- The American Property Casualty Insurance Association issued the following news release on Feb. 9, 2024:

Today, the Senate Committee on Commerce & Labor passed Senate Bill 256, which could raise auto insurance costs at a time when individuals, families, and businesses can least afford it. Senate Bill 256 would encourage litigation when an insured individual seeks coverage from their own carrier due to another driver's inadequate coverage. A 2022 independent actuarial study found that similar legislation in Virginia could lead to an estimated 19 percent increase in premiums for underinsured/uninsured motorist (UM/UIM) coverage. Senate Bill 256 goes even further than legislation from previous years, which means projections of the anticipated cost increase in annual premiums could run even higher.

"This harmful bill could result in higher auto insurance costs for consumers at time when many can least afford it," said Nancy Egan, vice president and state government relations counsel for the American Property Casualty Insurance Association (APCIA). "Over the past five years, inflation, supply chain issues, and the increasing cost of medical care and auto repairs have resulted in a 36.2 percent increase in auto insurance rates. Senate Bill 256 could cause auto insurance costs to spike even higher."

Virginians are already paying more in auto insurance coverage thanks to a bill Virginia lawmakers passed in 2021 that increased the minimum limits of insurance coverage that Virginians are required to purchase. In 2025, the minimum limits will increase again based on the 2021 law and will become some of the highest in the country. "When the next increase in minimum limits takes effect in 2025, auto insurance costs will increase for many Virginians, especially those who purchase the lowest levels of coverage and can least afford any more price hikes. Senate Bill 256 could further exacerbate rising auto insurance costs," added Egan.

Senate Bill 256 is duplicative of existing Virginia law, which already provides remedies for consumers under the Unfair Claims Settlement Practices Law. The Virginia Bureau of Insurance has full regulatory authority to handle consumer UM/UIM complaints and take action against insurers. Over a five-year period, the Bureau found only seven instances of unfair claims violations by insurers.

"APCIA urges lawmakers to protect Virginians from increasing auto insurance costs by putting a stop to Senate Bill 256," said Egan.

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The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions--protecting families, communities, and businesses in the U.S. and across the globe.

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Original text here: https://www.apci.org/media/news-releases/release/78893/