Uninsured motorist coverage; provide that limits will be equal to liability coverage unless insured selects otherwise.
The bill creates a more standardized framework for uninsured motorist coverage, which is expected to reduce confusion for consumers while purchasing automobile insurance. The automatic alignment of uninsured motorist coverage limits with bodily injury liability coverage provides a default level of protection unless the insured opts for lower limits, ensuring that drivers are not left with insufficient coverage. This adjustment reflects potential concerns regarding the financial protections available to Mississippi drivers and aims to enhance safety on the roads.
House Bill 896 aims to amend Section 83-11-101 of the Mississippi Code of 1972, establishing that uninsured motorist coverage limits are automatically set to be equal to the limits of bodily injury liability coverage and property damage liability coverage. This change is intended to simplify insurance coverage for policyholders, ensuring that individuals are adequately protected when involved in accidents with uninsured motorists. The new law will take effect on July 1, 2023, and will require insurers to adjust how they present uninsured motorist coverage options to their clients.
Despite its intentions to improve insurance clarity, there may be contention surrounding the bill. Some stakeholders may view the automatic setting of limits as infringing upon the policyholder's right to choose. Advocates for consumer choice may argue that individuals should have the flexibility to set their insurance limits according to their personal financial situations and preferences rather than being mandated by law. Furthermore, concerns may arise about how insurers communicate and manage these changes in policy structures with their clients and the potential for unintentional noncompliance under the new requirements.