Understanding Virginia Auto Insurance: What You Need To Know

Auto insurance is a policy that provides financial protection against liabilities incurred in a vehicle accident or physical damage to the car. In the United States, auto insurance requirements vary by state. In Virginia, drivers are mandated to carry proof of insurance in their vehicles at all times, and the minimum insurance requirements include bodily injury/death coverage per person and per incident, as well as property damage coverage. While Virginia does not require motorists to carry auto liability insurance, those who choose to forgo it must pay an annual fee to the Virginia Department of Motor Vehicles (DMV). Understanding the specific requirements and options for auto insurance in Virginia is essential for vehicle owners to ensure they are properly protected and compliant with the law.

Minimum insurance requirements

In Virginia, car insurance is mandatory for all registered vehicles. However, the state does not require motorists to carry auto liability insurance, making it one of the few US states with this exception. If you choose not to purchase car insurance, you must pay an annual uninsured motor vehicle fee to the Virginia Department of Motor Vehicles (DMV) along with your vehicle registration. This fee is substantial, set at $500, and it does not provide any insurance coverage. This means that if you cause an accident while uninsured, you are personally liable for any damage that occurs, and you will also face penalties from the DMV.

If you do opt for car insurance, the minimum coverage requirements in Virginia are as follows:

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

These figures represent the minimum amount of coverage you need to legally drive in Virginia. It's important to note that choosing the minimum coverage may not provide sufficient protection in the event of a serious accident.

Additionally, under Virginia law, auto insurance policies must also include coverage for uninsured and underinsured motorists, with limits equal to the policy's liability limits. However, you have the right to refuse this coverage. Considering Virginia's lax requirements for auto insurance, carrying uninsured motorist coverage is a sensible precaution.

When purchasing car insurance in Virginia, you must provide proof of insurance to the DMV when registering your vehicle and acquiring license plates. Failure to maintain insurance can result in severe penalties, including fines, suspension of your driver's license and vehicle registration privileges, and the requirement to continuously file proof of insurance for up to three years after your violation.

Proof of insurance

In the state of Virginia, drivers are required to carry proof of insurance in their vehicles at all times. This is to ensure that they are covered in the event of an accident. The minimum amount of auto insurance coverage in Virginia is $25,000/$50,000/$20,000. This means that in the event of a covered accident, the driver is covered for bodily injuries up to $25,000 per person, with a total maximum of $50,000 per incident. Additionally, the insurance covers up to $20,000 for damage to another person's property.

There are two types of liability coverage that a driver's insurance policy must include in Virginia: property damage and bodily injury. Property damage liability coverage safeguards your assets if you are found legally responsible for an accident. It covers certain damage you may cause to another person's property or vehicle. Bodily injury liability coverage, on the other hand, safeguards your assets if you are found legally responsible for an accident that resulted in bodily harm to another person. This coverage includes certain expenses associated with the harm sustained by the other party.

In addition to the minimum liability coverage, drivers in Virginia are also required to have uninsured/underinsured motorist coverage. This type of coverage protects you in the event of an accident where the other party is at fault and does not have insurance or does not have sufficient insurance. Uninsured/underinsured motorist coverage helps pay for property damage to your vehicle and bodily injury to you and your passengers when the other driver is uninsured or underinsured.

It is important to note that the state of Virginia imposes severe penalties for non-compliance with insurance requirements. If a driver is found to be uninsured, their driving and vehicle registration privileges will be suspended. To reinstate their privileges, they 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

Liability coverage safeguards the policyholder in the event they are at fault for causing an accident, covering the expenses of injuries or property damage incurred by others. On the other hand, UM/UIM coverage protects the policyholder when they are injured due to the fault of another person, typically an uninsured or underinsured driver.

Prior to July 1, 2023, Virginia's insurance laws allowed recovery under UM/UIM policies only if the total UM/UIM coverage exceeded the liability coverage. However, with the recent changes in the Code of Virginia § 38.2-2206, this restriction has been lifted. Now, policyholders can recover under their UM/UIM policy in addition to the at-fault driver's liability coverage, regardless of whether the total UM/UIM coverage exceeds the latter.

This change in law benefits drivers by providing greater financial protection in the event of an accident. For example, if a driver has $100,000 in liability coverage and $100,000 in UM/UIM coverage, they can now recover up to $200,000 in total insurance coverage by "stacking" these policies.

It's important to note that insurance companies may offer incentives to opt out of this new law by reducing or eliminating UIM coverage. However, the potential savings on premiums are minimal compared to the additional protection provided by the updated law. Therefore, it is advisable for drivers to carefully consider their needs and financial situation before agreeing to any changes in their insurance coverage.

Collision insurance

The cost of collision insurance can be high, but this can be mitigated by choosing a higher deductible. Collision insurance is typically purchased in conjunction with liability and comprehensive coverage. While not mandatory, it is often required by lenders or leasing companies if the insured party has a car loan or lease. This is to protect their financial investment in the event of an accident.

In the state of Virginia, the minimum auto insurance coverage includes $25,000 per person for bodily injury, with a total maximum of $50,000 per incident, and up to $20,000 for damage to another person's property. Collision insurance is an optional coverage that can be added to meet an individual's specific needs and provide additional protection.

Discounts for veterans

Veterans and active military members can benefit from various auto insurance discounts. Here are some of the top companies offering exclusive military discounts and benefits:

USAA

USAA is a top-rated insurance company that exclusively serves members of the US military community and their families. They offer the lowest rates on average, with their annual sample rates being $733 cheaper than the national average. USAA also provides excellent customer service, with high ratings in subcategories such as claims handling, customer loyalty, and customer satisfaction. In addition to low rates, USAA offers discounts for deployed individuals or those who store their vehicles on a military base. They also provide flexible coverage options, including insurance for classic or antique vehicles.

Geico

Geico, originally formed to serve government and military personnel, offers a military discount of up to 15% on auto insurance. They also provide an emergency deployment discount of up to 25% for those deployed to imminent danger zones. Geico has a wide range of insurance coverage options, including bodily injury, property damage liability, uninsured/underinsured motorist protection, and mechanical breakdown coverage. They operate in all 50 states and are known for their competitive rates and online quotes.

Farmers

Farmers Insurance is the seventh-largest insurance company in the country, offering auto insurance in most states. They provide a 10% military discount and have nearly two dozen other discount options, including discounts for paperless billing, timely payments, and installing anti-theft features. Farmers also allow customers to bundle home and auto insurance, which can result in savings of up to 20%.

Liberty Mutual

Liberty Mutual offers auto insurance to active military personnel, veterans, and reservists, with a discount of up to 12% for members of the Military Benefit Association. They also have a long list of coverage options and additional benefits, such as gap insurance, deductible fund, and accidental forgiveness.

Armed Forces Insurance

Armed Forces Insurance caters to veterans, active-duty service members, and their families, as well as employees of specific government departments. They provide rate quotes from multiple insurers within their network, allowing customers to choose a plan that best suits their budget and coverage needs. AFI members also receive additional benefits, such as identity theft resolution services and resources for permanent change of station (PCS).

In addition to these companies, State Farm, the largest personal auto insurer in the country, offers various discounts and benefits to military members and their families.

It is important to note that insurance rates can vary based on factors such as age, location, driving history, and vehicle type. Therefore, it is recommended to compare quotes from multiple insurers to find the best coverage and discounts.

Frequently asked questions