American Property Casualty Insurance coverage Affiliation on “dangerous invoice”

The American Property Casualty Insurance coverage Affiliation (APCIA) has referred to as Senate Invoice 256 “dangerous,” saying auto insurance coverage charges may surge on account of the laws.

Commenting after the Senate Committee on Commerce & Labor handed Senate Invoice 256 on Friday, APCIA vp and state authorities relations counsel Nancy Egan mentioned in a launch: “This dangerous invoice may lead to larger auto insurance coverage prices for customers at a time when many can least afford it.

“Over the previous 5 years, inflation, provide chain points, and the rising value of medical care and auto repairs have resulted in a 36.2% improve in auto insurance coverage charges. Senate Invoice 256 may trigger auto insurance coverage prices to spike even larger.”

Based on APCIA, Senate Invoice 256 would encourage litigation when a policyholder seeks protection from their very own service attributable to one other motorist’s insufficient protection.

In APCIA’s view, Senate Invoice 256 is dangerous information, significantly for Virginia residents. It was famous that, as it’s, Virginians are already paying extra for auto insurance coverage after a rise in minimal limits that was led to by state laws in 2021. Moreover, one other improve is about for subsequent 12 months.

“When the following improve in minimal limits takes impact in 2025, auto insurance coverage prices will improve for a lot of Virginians, particularly those that buy the bottom ranges of protection and might least afford any extra worth hikes,” mentioned Egan, whose camp believes Senate Invoice 256 is duplicative of current Virginia regulation. “Senate Invoice 256 may additional exacerbate rising auto insurance coverage prices.

“APCIA urges lawmakers to guard Virginians from rising auto insurance coverage prices by placing a cease to Senate Invoice 256.”     

The commerce physique confused that current laws in Virginia already supplies treatments for customers underneath the Unfair Claims Settlement Practices Regulation, regardless of there being solely seven cases of unfair claims violations by insurers over a five-year interval as per Virginia Bureau of Insurance coverage information.

What do you concentrate on this story? Share your ideas within the feedback under.