Virginia Auto Insurance: Understanding The Requirements

As of July 1, 2024, drivers in Virginia are required to have car insurance. Previously, Virginia was one of only two states that allowed people to drive without insurance, provided they paid an annual $500 uninsured motor vehicle (UMV) fee. Now, drivers must show proof of insurance when registering or renewing their registration. Failure to do so can result in a $600 non-compliance fee, suspension of driving privileges, and a $145 reinstatement fee. The minimum liability insurance coverage requirements are: $30,000 for bodily injury per person, $60,000 for bodily injury per accident, and $20,000 for property damage per accident.

Virginia's new insurance law

Virginia has updated its auto insurance laws, which took effect on January 1, 2022. The new law raises the minimum liability insurance coverage required for vehicles in the state. The changes will be implemented in two phases, with the initial phase in effect from January 1, 2022, to January 1, 2025, and the second phase beginning on the latter date.

First Phase (January 1, 2022 - January 1, 2025)

During this period, the minimum liability insurance coverage amounts are as follows:

• $30,000 for bodily injury or death per person, up from $25,000 previously.
• $60,000 for bodily injury or death of two or more persons, increased from $50,000.
• $20,000 for property damage, which remains unchanged.

Second Phase (From January 1, 2025)

The minimum coverage limits will be further increased to:

• $50,000 for bodily injury or death per person.
• $100,000 for bodily injury or death of two or more persons.
• $25,000 for property damage.

Other Key Points

• The new law applies to vehicle insurance policies issued or renewed on or after January 1, 2022.
• The self-insured operators of taxicabs are now required to maintain protection against uninsured and underinsured drivers, with bodily injury limits of $25,000/$50,000 and property coverage of $20,000 per vehicle.
• To purchase license plates and register a vehicle in Virginia, individuals must certify that the vehicle meets the minimum insurance requirements or pay the uninsured motor vehicle fee.
• Failure to comply with insurance requirements will result in the suspension of driving and vehicle registration privileges. Reinstating these privileges requires paying a $600 non-compliance fee, filing an SR-22 form with the DMV for three years, and paying a reinstatement fee.
• Virginia is one of the few states that do not mandate motorists to carry auto liability insurance. However, those who choose to drive without insurance must pay an annual uninsured motor vehicle fee, which is currently $500.

Driving without insurance

If you are caught driving without insurance in Virginia, you may be convicted of a Class 3 misdemeanour, fined up to $500, and have your driver's license, vehicle registration, and license plates suspended. You may also be required to pay a $600 non-compliance fee and file an SR-22 form with the DMV for three years, which can result in higher insurance rates.

To reinstate your driving privileges after being caught driving without insurance, you must pay the $600 non-compliance fee, file the SR-22 form, and pay a reinstatement fee of $145.

It is important to note that driving without insurance can also lead to financial ruin if you are involved in an accident. If you are at fault in an accident while uninsured, you will be personally liable for all damages, including property damage, injuries, and other accident-related expenses. The accident victim may sue you for damages, and if they prevail, you could face a judgment against you, affecting your credit score and leading to liens, wage garnishments, and bank levies.

Therefore, while it is not illegal to drive without insurance in Virginia, it is essential to consider the potential risks and costs associated with this decision. The best way to protect yourself financially and legally is to purchase a car insurance policy that meets Virginia's minimum coverage requirements.

Uninsured motorist fee

In Virginia, you must either carry auto liability insurance according to the Commonwealth's minimum coverage requirements or pay a fee to the Virginia Department of Motor Vehicles (DMV). This requirement applies to all registered vehicles.

The Commonwealth of Virginia is one of the few U.S. states that does not require motorists to carry auto liability insurance. However, if you choose to drive without insurance, you must pay an uninsured motorist fee to the DMV to do so legally. This means that you can legally drive without insurance in the state, provided you pay the required uninsured motor vehicle fee to avoid being fined.

The Virginia Uninsured Motor Vehicle (UMV) fee allows a motor vehicle owner to register an uninsured motor vehicle. At the time of registration, the owner must certify whether the vehicle is insured or uninsured. If the vehicle is uninsured, the owner is required to pay the DMV a $500 uninsured motor vehicle fee in addition to the normal registration fees. This fee is valid for twelve months but may be prorated for a shorter amount of time. It is important to note that payment of the $500 fee does not provide the motorist with any insurance coverage. If involved in an accident, the uninsured motorist remains personally liable.

If you cause an accident while driving without insurance, you are personally liable for any damage that occurs as a result. You will also face penalties from the DMV. The victims can sue you for damages, and if they prevail, you could face having a judgment entered against you. This judgment can significantly affect your credit score and lead to liens, wage garnishments, and bank levies.

Proof of insurance

In the Commonwealth of Virginia, motorists are not obliged to carry auto liability insurance. However, drivers must carry proof of insurance in their vehicle at all times. This proof of insurance must be presented when pulled over by law enforcement or when responding to an inquiry from the DMV's Insurance Verification Program.

There are two options for complying with Virginia's financial responsibility law: purchasing a minimum amount of liability insurance or paying an uninsured motor vehicle fee to the DMV. The uninsured motor vehicle fee is $500 per year and must be paid at the time of registration or renewal. This fee does not provide any insurance coverage, and drivers remain personally liable in the event of an accident.

If a driver chooses to purchase liability insurance, the minimum coverage requirements in Virginia are:

• Bodily injury/death (per person): $25,000
• Bodily injury/death (two or more people): $50,000
• Property damage: $20,000

Additionally, auto policies must include coverage for uninsured and underinsured motorists, with limits equal to the policy's liability limits. However, drivers have the right to refuse this coverage.

For drivers who have been convicted of driving under the influence (DUI) of alcohol or drugs, there are different insurance requirements. These drivers must carry an FR-44 policy for at least three years, which doubles the minimum coverage requirements and must be filed as proof of financial responsibility.

It is important to note that severe penalties may be imposed for not complying with insurance requirements in Virginia. Uninsured vehicle owners will have their driving and vehicle registration privileges suspended, and they may be required to pay a non-compliance fee, file an SR-22 form, and pay a reinstatement fee to have their privileges reinstated.

Insurance requirements for antique vehicles

In Virginia, insurance requirements also apply to antique motor vehicles. Antique vehicles must be insured with motor vehicle liability insurance. The minimum coverage limits are set forth in the Code of Virginia § 46.2-472.

To be considered an antique vehicle in Virginia, a car must be at least 25 years old and owned solely as a collector's item. Antique vehicles can only be used for antique car club activities, exhibits, tours, parades, and similar events. They cannot be used for general, daily transportation.

If you plan to use your antique vehicle solely as a collector's item, you may register your vehicle with antique license plates or permanent vintage license plates. Registering your vehicle with antique plates limits your use of the vehicle to the following:

• Participation in antique car club activities, exhibits, tours, parades, and similar events
• Testing its operation, obtaining repairs or maintenance, selling the vehicle, transportation to and from events as described above, and for the occasional pleasure driving, not to exceed 250 miles from your residence
• Carrying or transporting passengers, personal effects, or other antique motor vehicles being transported for show purposes

If you wish to use your antique vehicle for everyday driving, you will need to either purchase standard license plates from the DMV or provide vintage license plates and register your antique vehicle for general transportation purposes.

Frequently asked questions