Auto Insurance Requirements: Virginia's Essential Checklist

Virginia has specific auto insurance requirements that all drivers must meet. While the state allows you to drive without insurance, you must pay an uninsured motorist fee to do so legally. This fee, however, does not provide financial protection in the event of an accident. To comply with the law and ensure adequate protection, it is advisable to purchase auto insurance. The minimum coverage limits in Virginia include bodily injury liability, property damage liability, and uninsured/underinsured motorist coverage. These requirements are subject to change over time, with the state gradually raising the minimum liability limits. Understanding and meeting the auto insurance requirements in Virginia are crucial for drivers to stay legal and protected on the road.

Minimum insurance requirements

Virginia requires drivers to carry a minimum amount of auto insurance coverage for all registered vehicles. The minimum insurance requirements in Virginia are:

• $30,000 in liability coverage for bodily injury or death of one person in an accident caused by the owner/driver of the insured vehicle.
• $60,000 in liability coverage for total bodily injury or death liability in an accident caused by the owner/driver of the insured vehicle.
• $20,000 in liability coverage for property damage per accident caused by the owner/driver of the insured vehicle.

These liability minimums are set to increase for car insurance policies effective on or after January 1, 2025. From this date, the minimum requirements will be:

• $50,000 in liability coverage for bodily injury or death of one person in an accident.
• $100,000 in liability coverage for total bodily injury or death liability in an accident.
• $25,000 in liability coverage for property damage per accident.

It is important to note that these are the minimum insurance requirements in Virginia. Drivers may choose to purchase additional coverage to protect themselves in the event of a serious crash. Higher coverage limits are available in Virginia, with some insurers offering liability coverage of up to $1 million per accident and property damage coverage of up to $500,000.

In addition to the above minimum requirements, Virginia law also requires drivers to have uninsured/underinsured motorist coverage. This coverage applies when you are in an accident caused by a driver who does not have insurance or does not have sufficient insurance. The minimum coverage limits for uninsured/underinsured motorist coverage are the same as the liability coverage limits outlined above.

Virginia also allows drivers to legally drive without insurance, but they must pay an uninsured motorist fee to the DMV. This fee is $500 per year and must be paid at the time of vehicle registration. However, it is important to note that this fee does not provide any insurance coverage. If you are involved in an accident while driving without insurance, you will be personally liable for any damages that occur.

Proof of insurance

In Virginia, drivers must carry proof of insurance in their vehicles at all times. This proof of insurance should be provided before purchasing license plates or registering the vehicle. The minimum insurance requirements in Virginia are as follows:

• Bodily injury/death (per person): $25,000 to $30,000
• Bodily injury/death (two or more people): $50,000
• Property damage: $20,000

It is important to note that Virginia requires drivers to have uninsured motorist coverage in addition to the above. The minimum limits for uninsured motorist coverage are:

• Bodily injury: $30,000 per person and $60,000 per accident
• Property damage: $20,000 per accident with a $200 deductible for hit-and-run accidents

Drivers in Virginia can provide digital or physical proof of insurance. This can be in the form of an insurance ID card, a digital version of the insurance card on a phone or device, or by responding to the DMV's Insurance Verification Program inquiry with the vehicle identification number (VIN), insurance carrier name, and policy number.

Failure to provide proof of insurance can result in severe penalties, including fines, suspension of driving privileges, and suspension of vehicle registration. To reinstate driving privileges, uninsured vehicle owners must pay a $600 non-compliance fee, file an SR-22 form with the DMV for three years, and pay a reinstatement fee if applicable.

Uninsured motorist coverage

The minimum amount of uninsured motorist coverage required in Virginia is $30,000 in liability coverage for bodily injury or death of one person in an accident, $60,000 in liability coverage for total bodily injury or death liability in an accident, and $20,000 in liability coverage for property damage per accident. These limits are the same as the minimum liability insurance requirements in the state.

It's important to note that if your vehicle is damaged by a hit-and-run driver who cannot be identified, you will have to pay the first $200 towards repairing or replacing your car before the uninsured motorist coverage kicks in.

In Virginia, you automatically purchase uninsured motorist coverage when you buy auto insurance, and it is illegal to drive without it. Driving without insurance can result in severe penalties, including suspension of driving privileges, suspension of vehicle registration, payment of a $600 non-compliance fee, and filing a Financial Responsibility Insurance Certificate (SR-22) for three years.

Consequences of driving without insurance

As of July 1, 2024, driving without insurance in Virginia is illegal. The state previously allowed vehicle owners to pay a $500 Uninsured Motor Vehicle (UMV) fee to drive without insurance. However, this option is no longer available, and all drivers are now required to carry at least the state-mandated minimum amount of liability insurance.

If you are caught driving without insurance in Virginia, you may face several penalties and consequences, including:

• Suspension of driving privileges: Your driver's license, vehicle registration, and license plates may be suspended.
• Non-compliance fee: You may be required to pay a $600 non-compliance fee to the Virginia Department of Motor Vehicles (DMV).
• Reinstatement fee: To get your license back, you may need to pay a reinstatement fee of $145.
• SR-22 requirement: Your insurance provider will need to file an SR-22 form on your behalf, indicating that you carry the minimum required auto insurance. This form must be on file for three years, and SR-22 insurance is typically more expensive than regular auto insurance.
• Increased insurance premiums: A lapse in insurance coverage is considered a high-risk factor by insurance companies, which may result in higher insurance premiums.
• Vehicle impoundment: In some cases, your vehicle may be towed, and you will need to submit proof of insurance and pay impound and reinstatement fees to get it back.
• Financial burden in case of an accident: If you are involved in an accident while uninsured, you will be responsible for all the property damage, injuries, and other accident-related expenses. This can result in significant out-of-pocket expenses, and you may even be sued for bodily injury or property damage.
• Criminal charges: Driving without insurance in Virginia can result in a Class 3 misdemeanor conviction, which can have additional legal consequences.

To avoid these consequences, it is essential to maintain continuous insurance coverage or, if choosing to drive without insurance, pay the UMV fee. However, it is important to note that the UMV fee does not provide any insurance coverage in the event of an accident.

Optional insurance coverages

While the state of Virginia requires a minimum amount of auto insurance coverage for all registered vehicles, there are several optional insurance coverages that you can add to your policy. Here are some of the optional coverages that you may want to consider for enhanced protection:

Collision Coverage

Collision coverage is an optional insurance coverage that helps repair or replace your vehicle in the event of a collision with another vehicle or object. This coverage is subject to a deductible, which is the amount you must pay before your insurance company covers the rest. It's worth noting that collision coverage might be mandatory if you have a vehicle lease or financing agreement.

Comprehensive Coverage

Comprehensive coverage, also known as "other than collision" coverage, protects your vehicle from non-collision-related incidents. This includes a range of situations such as theft, fire, vandalism, glass breakage, and encounters with animals. Like collision coverage, comprehensive coverage is subject to a deductible.

Medical Expense and Income Loss Benefits

This optional coverage helps pay for necessary medical expenses for you or other covered individuals under the policy, regardless of who is at fault in an accident. In the unfortunate event of a covered person's death, this coverage can also extend to funeral expenses.

Accident Forgiveness

With accident forgiveness coverage, your insurance rates will not increase after your first at-fault accident. This can provide peace of mind and financial protection in the event of an unexpected incident.

Roadside Assistance

Roadside assistance coverage offers services like fuel delivery, lockout service, and jump-starts. This optional coverage is typically available at different levels, allowing you to choose the option that best suits your budget and needs.

Rental Car Coverage

If your vehicle becomes unusable due to a covered loss, rental car coverage can help pay for a rental car or alternative transportation expenses. This coverage ensures that you can stay mobile while your vehicle is being repaired or replaced.

These optional coverages allow you to customize your auto insurance policy to match your specific needs and provide additional protection beyond the minimum requirements in Virginia. It's important to carefully review your policy and consider the optional coverages that best align with your driving habits, vehicle usage, and potential risks.

Frequently asked questions