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 vice chairman and state authorities relations counsel Nancy Egan stated in a launch: “This dangerous invoice may lead to increased auto insurance coverage prices for shoppers 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 increased.”

In keeping with APCIA, Senate Invoice 256 would encourage litigation when a policyholder seeks protection from their very own provider as a consequence of one other motorist’s insufficient protection.

In APCIA’s view, Senate Invoice 256 is dangerous information, notably 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 caused by state laws in 2021. Moreover, one other improve is ready for subsequent yr.

“When the subsequent 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 may least afford any extra value hikes,” stated Egan, whose camp believes Senate Invoice 256 is duplicative of present 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 harassed that present laws in Virginia already gives cures for shoppers 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 knowledge.

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