Virginia’s underinsured motorist (UIM) stacking law, enacted under Virginia Code § 38.2-2206, allows you to combine your own UIM coverage with the at-fault driver’s liability insurance rather than having one subtracted from the other. This change took effect for all auto insurance policies issued or renewed after July 1, 2023, and it can significantly increase the total insurance coverage available to you after a car accident in Gloucester County and throughout the Middle Peninsula region.
At GibsonSingleton Virginia Injury Attorneys, our Gloucester car accident lawyers help accident victims across Gloucester, Hampton Roads, and the surrounding communities understand their insurance rights and pursue full compensation. Ken Gibson and John Singleton are former U.S. Marines who bring decades of legal experience to every case they handle. Our personal injury attorneys can review your auto insurance policy and explain how the stacking law applies to your situation.
This guide explains what UIM stacking means, how it changed Virginia’s insurance rules, what the old law allowed insurance companies to do, and why you should not opt out of stacking coverage. You will also learn about Virginia’s updated minimum insurance requirements and what to do if you are injured by an underinsured driver. Call GibsonSingleton Virginia Injury Attorneys at (804) 413-6777 to speak with Ken Gibson about your case.
What Did Virginia’s Old UIM Insurance Law Allow?
Under the old law, Virginia calculated underinsured motorist (UIM) coverage by subtracting the at-fault driver’s liability coverage from your UIM policy limits. This meant your insurance company received a “credit” for the other driver’s coverage, which often reduced or eliminated the value of the UIM policy you paid for.
For example, if the at-fault driver had $50,000 in liability coverage and you carried $50,000 in UIM coverage, your insurance company would subtract the $50,000 liability payout from your UIM limits. The result was $0 in additional UIM coverage, even though you had been paying premiums for that protection.
This system left many accident victims in Gloucester County and across Virginia without enough insurance to cover serious injuries. Drivers who purchased UIM coverage expected that protection to be available when they needed it. Instead, the old formula often made their UIM policies worthless whenever the at-fault driver carried any amount of liability insurance.
Key Takeaway: Under Virginia’s old UIM law, insurance companies subtracted the at-fault driver’s liability coverage from your UIM limits. This often eliminates your UIM benefits entirely, leaving you with less coverage than you paid for.
How Does UIM Stacking Work Under the New Virginia Law?
Under Virginia Code § 38.2-2206, as amended by Senate Bill 754, UIM coverage now “stacks” on top of the at-fault driver’s liability insurance. Your insurance company can no longer subtract the other driver’s coverage from your UIM limits. Instead, both amounts are added together, giving you access to a larger pool of insurance funds.
Consider this example. Suppose you are involved in a car accident along Route 17 (George Washington Memorial Highway) in Gloucester County, and the at-fault driver carries $50,000 in liability insurance. You carry $100,000 in UIM coverage. Under the old law, your insurer would subtract the $50,000 liability payment from your $100,000 UIM limit, leaving you with only $50,000 in UIM benefits and a total of $100,000 in available coverage.
Under the new stacking law, you can collect the full $50,000 from the at-fault driver’s liability policy and the full $100,000 from your own UIM policy. That means up to $150,000 in total available insurance coverage for your injuries, lost wages, and other damages.
How Stacking Changes Your Available Coverage
| Scenario | At-Fault Driver’s Liability | Your UIM Coverage | Old Law Total | New Stacking Law Total |
|---|---|---|---|---|
| Equal coverage amounts | $50,000 | $50,000 | $50,000 | $100,000 |
| Higher UIM than liability | $50,000 | $100,000 | $100,000 | $150,000 |
| New minimum coverage | $50,000 | $50,000 | $50,000 | $100,000 |
| Higher coverage amounts | $100,000 | $250,000 | $250,000 | $350,000 |
The stacking provision applies automatically to all Virginia auto insurance policies issued or renewed after July 1, 2023. You do not need to request it. However, insurance companies may ask you to opt out. This is an important decision that can affect your financial recovery after a crash.
Car Accident Attorney in Gloucester – GibsonSingleton Virginia Injury Attorneys
At GibsonSingleton Virginia Injury Attorneys, Ken Gibson and John Singleton represent people injured in car accidents across Gloucester and the surrounding communities. Both bring strong trial backgrounds and a shared commitment to standing up for people harmed in serious crashes. They focus on helping accident victims pursue fair compensation and move forward after serious injuries.
Ken Gibson
- Former federal prosecutor with the U.S. Department of Justice
- Co-founder of GibsonSingleton Virginia Injury Attorneys
- U.S. Marine Corps Reserve veteran who operated an M1A1 tank
- University of Virginia graduate; J.D., University of South Carolina School of Law
- Member of the Virginia Trial Lawyers Association and the American Association of Justice
- Gloucester County Board of Supervisors representative for the Petsworth District
John Singleton
- Former U.S. Marine with service in China and Beirut, Lebanon
- Mercer University Law School graduate (Macon, Georgia)
- Former attorney at a large insurance defense firm in West Virginia
- Brings insight from insurance defense work to represent injured clients
- Special Justice hearing adult mental health commitment matters in Virginia’s Ninth Judicial Circuit
- Active in the Middle Peninsula Bar Association, The Fairfield Foundation, Gloucester-Mathews Care Clinic, and Rural Housing
Should You Opt Out of UIM Stacking Coverage in Virginia?
Virginia law allows a named insured to sign a written election to have underinsured motorist (UIM) benefits paid “with a credit”, meaning the insurer may reduce UIM payments by the at-fault driver’s available liability coverage (the pre–July 1, 2023 approach). If a named insured signs that election, it is binding on all insureds under the policy.
Insurance companies may contact you and offer a small reduction in your premium if you opt out of stacking. While this saves a few dollars on your monthly bill, it could cost you tens of thousands of dollars in available coverage if you are seriously injured. The premium difference is typically minimal compared to the increased protection stacking provides.
Drivers traveling along Route 17 through Gloucester County face particular risks at intersections like Woods Cross Road, where the Virginia Department of Transportation (VDOT) documented that nearly 70 percent of crashes between 2014 and 2024 resulted in serious injuries or fatalities. The VDOT invested $5.1 million in safety improvements at that intersection because of the severity and frequency of collisions. With accident risks this high, maintaining full stacking coverage is especially important.
Does Virginia Require Drivers to Carry Auto Insurance?
As of July 1, 2024, Virginia requires registered vehicles to be covered by liability insurance (or qualifying self-insurance), and applicants must certify proof of insurance when registering a vehicle under Virginia Code § 46.2-706. Before this change, Virginia was one of only two states that allowed drivers to operate a vehicle without insurance by paying a $500 uninsured motor vehicle (UMV) fee to the Virginia Department of Motor Vehicles (DMV). Senate Bill 951 eliminated that option, making insurance mandatory for all registered vehicles.
The UMV fee provided no financial protection in the event of an accident. Drivers who paid the fee were personally responsible for all damages they caused. If they could not pay, accident victims were left without a source of compensation, even for serious injuries requiring treatment at hospitals.
In addition to eliminating the UMV fee, Virginia increased its minimum auto insurance requirements effective January 1, 2025. The new minimums under Virginia Code § 46.2-472 are:
- $50,000 for bodily injury or death of one person in any one accident
- $100,000 for bodily injury or death of two or more persons in any one accident
- $25,000 for property damage in any one accident
These higher limits replaced the previous minimums of $30,000/$60,000/$20,000. Uninsured/underinsured motorist (UM/UIM) coverage must now match at least these minimum amounts.
What Is Uninsured/Underinsured Motorist Coverage, and Why Does It Matter?
Uninsured/underinsured motorist (UM/UIM) coverage is a type of auto insurance that protects you when the driver who caused your accident either has no insurance or does not carry enough insurance to cover your damages. UM coverage applies when the at-fault driver has no insurance at all. UIM coverage applies when the at-fault driver has some insurance, but not enough to fully compensate you.
Under Virginia Code § 38.2-2206, every auto insurance policy issued in Virginia must include UM/UIM coverage at limits equal to your liability coverage, unless you specifically request lower limits in writing. Even then, your UM/UIM limits cannot fall below the state minimum of $50,000 per person. This coverage is particularly important in the Gloucester and Middle Peninsula area, where Route 17 carries heavy traffic, including seasonal beach travelers who may be unfamiliar with local road conditions.
A motor vehicle is considered “underinsured” when the at-fault driver’s total available liability coverage is less than the total damages you sustained. Before the stacking law, many drivers did not realize that their UIM coverage could be reduced to zero by the old subtraction formula. Now, with stacking, your UIM coverage pays in full on top of whatever the at-fault driver’s insurance provides.
Can You Stack Multiple UIM Policies in Virginia?
Virginia law also allows for “resident relative” stacking in certain situations. If you live with a family member who has their own auto insurance policy with UIM coverage, you may be able to access that coverage in addition to your own. This type of stacking can provide an additional layer of financial protection when one policy alone is not enough to cover catastrophic injuries.
However, resident relative stacking is not guaranteed. Some insurance policies contain specific language that limits or excludes this type of coverage. Whether you can stack multiple policies depends on the terms of each policy and the specific facts of your case. An attorney can review all applicable policies to identify every available source of UIM coverage.
Drivers on the York River crossings, including the Coleman Bridge connecting Gloucester Point to Yorktown, face unique accident risks due to bridge congestion and limited emergency response access. In serious accidents on the bridge or along the Chesapeake Bay corridor, the total cost of medical treatment, emergency transport, and rehabilitation may exceed a single policy’s limits. Stacking coverage from multiple policies can help bridge that financial gap.
Key Takeaway: You may be able to stack UIM coverage from a resident relative’s policy on top of your own, potentially increasing your total available coverage. An attorney can review all applicable policies to determine whether this option is available in your situation.
How Does the UIM Stacking Law Affect Car Accident Settlements in Virginia?
Since the stacking law took effect, Virginia attorneys have reported a significant increase in settlement amounts for car accident cases. Because insurance companies can no longer subtract the at-fault driver’s liability coverage from UIM limits, more insurance money is available to compensate injured drivers for medical bills, lost wages, pain and suffering, and other damages.
The increased coverage is especially meaningful for accidents involving serious injuries. High-speed collisions along Route 17 in Gloucester County can cause traumatic brain injuries, spinal cord damage, and other catastrophic injuries that require months or years of medical treatment. Emergency transport from an accident scene near Gloucester Point may require transfer to a regional trauma center, adding high costs that quickly exceed minimum coverage limits.
For motor vehicle accidents occurring on or after July 1, 2024, Virginia law provides a potential bad-faith remedy in UM/UIM claims if the UM/UIM insurer fails to pay, fails to make a timely and reasonable settlement offer, rejects a reasonable settlement demand within policy limits, or fails to respond within a reasonable time after the insured becomes legally entitled to recover. A court later finds the insurer’s conduct was not in good faith (with additional damages capped by statute).
Talk to a Car Accident Attorney in Gloucester County Today
The difference between the old UIM rules and the new stacking law can mean tens of thousands of dollars in additional coverage for your claim. Our car accident lawyers handle cases at the Gloucester Circuit Court at 7400 Justice Drive and represent clients injured throughout the Hampton Roads region.
Call GibsonSingleton Virginia Injury Attorneys at (804) 413-6777 or toll-free at (855) 781-6777 for a free consultation. Our office is located at 4073 George Washington Memorial Highway in Hayes, Virginia, serving clients across Gloucester County, the Middle Peninsula, and Eastern Virginia. With our firm’s Zero Fee Guarantee, you pay nothing unless they win your case.
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