Issue |
Pre-2009 Law |
"Truth in Auto" Law
(policies issued or renewed after Nov. 1, 2009, unless otherwise noted)
|
New Law
(policies issued or renewed after Nov. 1, 2011)
|
Mandatory Insurance |
One of the two states in the U.S. that does not require all drivers to carry insurance |
All drivers required to carry auto insurance
(effective June 1, 2010)
|
Auto insurance is still mandatory |
Minimum Liability Limits |
Set in 1982, minimum liability limits were $25,000 (one person)/ $50,000 (per occurrence)/ $10,000 (property) |
Minimum limits were increased to $50,000 / $100,000 / $15,000 |
$25,000 / $50,000 / $10,000 |
Uninsured Motorist (UM) |
Mandatory coverage, with minimum limits of $25,000 / $50,000 |
Mandatory coverage, with minimum limits of $100,000 / $300,000 |
Still mandatory, but minimum limits were reduced to $25,000 / $50,000 |
Underinsured Motorist (UIM) |
Coverage was optional, and if chosen, required limits of at least $50,000 / $100,000 |
Mandatory coverage, with minimum limits of $100,000 / $300,000 |
Coverage is now optional, but if coverage is included, limits must be at least $50,000 / $100,000 |
Definition of UIM coverage |
Each company can create its own definition of what is considered an underinsured motor vehicle. |
Underinsured motor vehicle was defined by statute and compared the negligent driver's liability limit with the amount of damages actually sustained by a victim |
Revert to the Pre-2009 law allowing companies to define UIM however they want, often comparing the negligent driver's liability limit to the victim's UIM coverage with no respect for actual damages sustained |
UM/UIM Umbrella Coverage |
Companies were obligated to offer UM/UIM coverage on an umbrella policy but were not required to document consumer responses to the offer |
Companies must still offer UM/UIM coverage on an umbrella policy, but consumers refusing the coverages must do so in writing |
Companies no longer need to offer UM/UIM coverage on an umbrella policy |
Med Pay |
Optional, $1,000 minimum |
Optional, $10,000 minimum |
Optional, $1,000 minimum |
Stacking |
Consumers who own more than one policy were not allowed to access coverages from the additional policies |
Consumers were able to access additional coverages from up to 3 UM/UIM policies |
Stacking is no longer mandated by statute -- refer to your individual policy to see if stacking is allowed |
Reducing Clauses |
Companies are allowed to reduce your UM/UIM coverages to reflect the insurance carried by the other driver |
Reducing clauses were prohibited. Consumers could access all of the UM/UIM coverage they paid for. |
Revert to the Pre-2009 law, reducing clauses are permitted. |
Hit and Run Coverage |
Companies could deny claims where no physical contact occurred, even if there were witnesses to the accident |
UM coverage was required to cover hit and run accidents even if no physical contact occurred, if there was evidence by an independent third party to the accident |
If you are run off the road, or an accident is caused by a vehicle that does not make physical contact with you, the new "Phantom Motor Vehicle" law requires several things for coverage to be considered:
You must have a witness who can corroborate what happened, and the witness cannot have a claim as a result of the accident
Within 72 hours of the accident, an accident report must be made to law enforcement
Within 30 days, you must file a report with your insurance company under oath setting forth the facts of the case
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