An act relating to automobile insurance

This bill (S.7) changes Vermont's automobile insurance rules to better protect injured drivers. It prohibits insurers from reducing underinsured motorist coverage by subtracting payments received from the at-fault driver's liability insurance. It also prevents insurers from claiming back medical costs paid under medical payments coverage from third parties. These changes directly affect Vermont drivers injured in accidents involving underinsured or uninsured drivers, ensuring they receive full coverage without double deductions. The law takes effect for new policies on or after January 1, 2026.