VT S0007

Prohibits auto insurers from deducting payments received from an at-fault driver's liability insurance policy from the underinsured motorist coverage available to the policyholder

Eliminates insurers' subrogation rights for medical payments coverage, meaning insurers cannot seek reimbursement from third parties for medical costs they paid to or for the insured

Amends the definition of "underinsured" vehicle to reference damages the insured is legally entitled to recover, rather than the limits of uninsured motorist coverage

Applies to all automobile insurance policies offered, issued, or renewed on or after January 1, 2026

Introduced by Senator Hashim on January 14, 2025 and referred to the Committee on Judiciary