An act relating to automobile insurance

This bill modifies Vermont's automobile insurance laws to clarify how underinsured motorist coverage works and how insurers handle payments for medical costs. It defines a vehicle as underinsured when the at-fault driver's liability coverage is lower than the injured party's uninsured motorist limits, or when liability payments to other crash victims reduce available coverage below those limits. The legislation also prevents insurers from using subrogation rights to recover medical payments they have already made to their own insureds. These changes apply to all auto insurance policies offered, issued, or renewed on or after January 1, 2025.