New VA Law Allows Bad Faith Claims Against Your Own Insurer

 Posted on August 15, 2024 in Uncategorized

Virginia Code Section 8.01-66.1 went into effect on July 1, 2024, across the state. The law addresses a 2017 Virginia Supreme Court ruling that held there is no bad faith in underinsured/uninsured claims made against one’s own insurance carrier. Many personal injury claims can involve bad faith on the part of an insurer who refused to pay a legitimate claim.  

Bad faith occurs when an insurance company denies or delays a legitimate claim without a solid reason. While all insurance companies strive to pay out as little as possible, there are some lines they cannot legally cross without committing an act of bad faith. The state’s previous lack of bad faith laws for underinsured/uninsured motorist coverage gave insurers the right to pay nothing or delay compensation for long periods of time with no repercussions.

While bad faith laws in Virginia have seen some positive developments that took steps to level the playing field for policyholders, uninsured/underinsured coverage was generally exempt. If you have filed a claim against your own insurer for an uninsured/underinsured accident and you feel as though you are being stonewalled, it is time to speak to a Herndon, VA personal injury attorney.

Insurer Bad Faith Across the Nation

Virginia’s recent decision joins other state decisions across the United States to hold an insurer liable when it denies a valid claim or fails to pay an insured within a reasonable amount of time. The new Virginia law provides liability to the insured when bad faith is established for double the amount of damages awarded, not to exceed $500,000.

Policyholders can seek not only owed benefits, but additional damages, legal fees, attorney fees, and interest. In personal injury cases, a prompt, equitable settlement is essential for the policyholders to cover their medical expenses, lost wages, and other damages. This incentivizes insurance companies to handle bad-faith actions more quickly and fairly.

The policyholder can make a claim for uninsured/underinsured motorist coverage for an amount that is within policy limits. If this demand is unreasonably denied, or there is no response from the policyholder’s insurance company within a reasonable amount of time, a judgment must be secured against the insurer. Once the judgment is secured, a bad faith claim can be brought against the insurer.  

When Is Uninsured/Underinsured Insurance Applicable?

About one in seven drivers are uninsured. In the state of Virginia, that number is better, without about one in 10 uninsured drivers. Even so, statistically speaking, you have a one in 10 chance of being hit by an uninsured driver. Being hit by an underinsured driver is even higher. When you add in the fact that between 2015 and 2019, nearly four million Americans were involved in hit-and-run accidents (about 2 percent of all licensed drivers), you can see how important uninsured/underinsured insurance is.  

This type of insurance is purchased through a person’s own insurance company and added to the policy. Uninsured coverage pays you when the person who hit you has no insurance, or they flee the scene of the accident. Underinsured coverage pays when you receive serious injuries that quickly exceed the amount of coverage the negligent driver who hit you carries. Your underinsured insurance will cover any accident-related expenses that the other party’s insurance does not cover.

Contact an Experienced Fairfax County, VBA Personal Injury Attorney

There are many situations when an individual is injured as the result of negligence or the wrongful actions of another. The injured party can struggle to pay medical expenses, and if he or she is unable to work, regular living expenses may also go unpaid. If you find yourself in such an untenable situation, a highly skilled Herndon, VA personal injury attorney from Immigration Legal Advisors, PLLC can help you through this difficult time. We understand the challenges you now face and are committed to providing comprehensive legal support throughout the process to ensure all your damages are fully covered. Contact Immigration Legal Advisors, PLLC at 571-441-2233 to schedule a free case evaluation.