New Insurance Laws in Virginia You Should Know
Each state in the US is in charge of its own laws and regulations for insurance policies. That’s why there are so many differences when you compare states’ laws. Additionally, these laws can change at any time, so learning about the changes is important. The state of Virginia recently updated the insurance laws, so it’s important to stay updated.
Up until the start of 2022, the requirements were lower than they are today. However, the minimum liability coverage went up to 30/60/20 from 25/50/20. This means you now need insurance that covers $30,000 for bodily injury per person and $60,000 per accident, with $20,000 for property damage per accident.
A significant recent change you should know about is the changes to what fees companies can offer to new and returning customers. As it stands, no company can raise the fees for existing customers. They must offer the same fees to new customers, which they lower to draw people in.
Why the Change?
This change came about because charging more money for returning customers is a form of punishment for returning customers. It punishes loyalty to a company, as you pay more just because you don’t change companies every year. Virginia decided that changing its regulations to prevent the price difference was the best way to move forward. This change affects every kind of vehicle insurance, from cheap broad form insurance to collision insurance.
What It Means for You
What do the changes mean for you as an insurance holder? Your premiums won’t unduly increase because you’re loyal to a company, so you won’t have to consider switching companies every year. This is one of the most important insurance laws you should know in Virginia.
While keeping up with all the changes that occur in your state is difficult, you should know what will impact you. These recent changes help you and reward loyalty to a company, which is why it’s important to know them.