When it comes to auto insurance, it’s essential to understand the various coverage options available to protect yourself and your vehicle. In Virginia, one crucial aspect to consider is uninsured and underinsured motorist coverage. Recently, changes in the state’s insurance laws have introduced a new option. This blog aims to explain the differences between standard and alternative uninsured/underinsured motorist coverage in Virginia and shed light on the implications of these changes, helping you make informed decisions about your insurance needs.

Alternative Coverage:

The alternative system “the old way” was a credit system, where whatever you collected from the other party offset what you could collect under your policy. Virginia’s recent insurance law changes have introduced a standard option. Under the new law, drivers can now choose between standard coverage and alternative coverage (the old way) that provides lower limits. This alternative option may result in a lower insurance premium, but it also means accepting reduced protection in the event of an accident involving an underinsured driver.

Standard Coverage:

This coverage continues to protect you if you’re involved in an accident caused by an uninsured or underinsured driver. However, the new law removes the offset or credit from the other person’s insurance. If the other driver is at fault and lacks sufficient insurance coverage, your policy will step in to compensate for your medical expenses, property damage, and other losses “in addition” to the other person’s policy limits. The standard way will broaden your coverage.

Implications of the Changes:

Some will not understand the difference between standard and alternative and opt for alternative due to the lower premium. It’s crucial to consider the potential impact on your insurance coverage and financial security. Here are some key implications to keep in mind:

  1. Reduced Coverage Limits: By selecting alternative coverage, you opt for lower coverage limits than what the standard option provides. This means that in the event of an accident caused by an underinsured driver, your policy may not fully cover your medical expenses, property damage, or other losses. It’s essential to weigh the cost savings against the potential financial risk.
  2. Personal Financial Responsibility: With reduced coverage limits, you may become personally responsible for any expenses exceeding your policy’s limits. This could have significant financial implications, especially if you suffer severe injuries or your vehicle sustains extensive damage. Consider your own financial situation and ability to absorb unexpected costs before choosing alternative coverage.
  3. Evaluating Risk: Assessing the likelihood of being involved in an accident with an underinsured driver is critical when deciding between standard and alternative coverage. Most drivers have opted for state minimum liability which only pays $30,000 per person for bodily injury and even less for physical damage. Medical bills will quickly exceed that, and the average price of a new car is around $46,000. Factors such as your driving habits, where you frequently drive, and the prevalence of uninsured drivers in your area can help you understand the potential risk. Balancing risk and cost is vital to making an informed decision.

Considerations for Choosing Coverage:

When deciding between standard and alternative uninsured/underinsured motorist coverage in Virginia, consider the following:

  1. Budget: Evaluate your budget and determine how much you can comfortably allocate towards insurance premiums. Compare the costs of standard and alternative coverage options to see which aligns better with your financial situation.
  2. Personal Risk Tolerance: Assess your personal risk tolerance and your ability to handle unexpected expenses. If you prefer greater peace of mind and more comprehensive protection, standard coverage may be the better choice.
  3. Driving Environment: Understand the driving environment in which you typically operate. If you frequently drive in high-risk areas or areas with a higher prevalence of underinsured drivers, opting for standard coverage may be more prudent.


Selecting the appropriate uninsured/underinsured motorist coverage in Virginia requires careful consideration of the differences between standard and alternative options. While alternative coverage may provide cost savings, it also introduces potential risks and reduced protection. By assessing your budget, risk tolerance, and driving environment, you can make an informed choice that aligns with your insurance needs and financial security. Remember, consulting with an experienced insurance agent can provide valuable guidance tailored to your specific circumstances.

Skip to content