Uninsured motorist coverage; provide that limits will be equal to liability coverage unless insured selects otherwise.
Impact
The implications of this bill are significant as they propose a standardized approach to uninsured motorist coverage, which has been a point of confusion among many insured individuals. By aligning coverage limits, it aims to reduce the instances where consumers unwittingly select inadequate coverage that could leave them exposed financially in the event of an accident. This legislative change is particularly important in Mississippi, where uninsured driver rates may necessitate stronger protections for lawful motorists.
Summary
House Bill 916 amends Section 83-11-101 of the Mississippi Code of 1972, specifically addressing uninsured motorist coverage. The bill mandates that for policies issued after July 1, 2024, the limits of uninsured motorist coverage must automatically match the limits of bodily injury and property damage liability coverage, unless the consumer explicitly chooses lower limits. This change aims to simplify the insurance process for consumers, making it clear and standardized across policies, thereby ensuring that policyholders have adequate coverage in case they are involved in accidents with uninsured drivers.
Contention
Notably, there may be contention among stakeholders regarding this mandate. Insurance companies might express concerns about the regulatory burdens this places on them, particularly regarding the potential rise in premium costs or the burden of informing clients of these changes. Additionally, consumer advocacy groups could have differing opinions on whether this will genuinely lead to better protection or if consumers would benefit from having the freedom to choose lower limits as previously available without the complication of mandated coverage adjustments.