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If you’re a Virginia driver, you may have wondered if you need car insurance in the former state. The answer to that question changed this year when the Virginia General Assembly repealed a law that allowed drivers to pay a fee if they wanted to avoid buying insurance. As of July 1, 2024, all drivers in the state are required to carry liability coverage. Additionally, the state will increase mandatory minimum coverage limits starting January 1, 2025.
Virginia auto insurance laws
In Virginia, all vehicle owners must comply with certain insurance laws in order to legally operate their vehicle. These laws provide that all registered vehicle owners must meet minimum insurance requirements mandated by the state legislature.
For policies effective from January 1, 2022 to December 31, 2024, minimum auto insurance in Virginia includes:
For insurance effective after January 1, 2025, drivers must carry:
- Personal injury liability $50,000 per person
- $100,000 personal injury liability per accident
- $25,000 property damage liability
Drivers must carry their insurance card whenever behind the wheel and provide appropriate insurance documentation upon request by law enforcement. In addition, insurance companies in Virginia are required to notify the Virginia Department of Motor Vehicles (DMV) when insurance policies for vehicles registered within the state are initiated or canceled. If the DMV has a record of a registered vehicle without insurance, the owner will be notified and must provide proof of coverage.
Virginia Liability Insurance
Drivers who purchase auto insurance for their vehicles in Virginia must carry at least the minimum required liability limits established by the state, as outlined above. Liability coverage is designed to financially protect the other party in an accident you cause. Damage to the vehicle or injuries sustained by the customer are not covered.
While purchasing auto insurance only to your state’s minimum requirements may seem like enough to avoid legal and financial problems, most insurance professionals recommend doing more to increase your financial protection. We recommend subscribing to a higher limit. For example, under Virginia requirements, each person in the other vehicle is entitled to $30,000 in medical reimbursement, and total medical payments cannot exceed $60,000. This means that if there were three passengers in the other vehicle and each incurred $30,000 in medical bills for a total of $90,000, the remaining $30,000 would have to be paid out of the at-fault driver’s pocket. means.
Is Virginia a no-fault state?
No, Virginia is not a no-fault state when it comes to auto insurance. It is a failure condition. Virginia is a negligent state and has a tort system, meaning that the driver who causes the accident is liable for damages. This system can affect the amount of compensation you can claim after a road accident and may require legal proceedings to determine the cause of the accident.
What are Virginia’s new auto insurance laws?
Virginia’s auto insurance laws have recently been updated, specifically regarding uninsured and underinsured motorist coverage, which drivers can choose to add to their insurance. Effective July 1, 2023, uninsured motorist (UM) and underinsured motorist (UIM) coverage has changed significantly. Previously, a driver’s UM/UIM insurance would only pay if the coverage limit exceeded the at-fault driver’s liability coverage.
Under the new law, Virginia drivers can now stack UM/UIM coverage on top of their at-fault driver liability coverage without deducting the at-fault driver’s insured amount. This change could potentially allow drivers to receive more money from their insurance in the event of an accident involving an underinsured driver. This could be especially beneficial for Virginia drivers, as the state’s uninsured driver rate remains at 12.1%. This law affects new auto insurance policies and renewals after July 1, 2023.
Penalties for driving without insurance in Virginia
In Virginia, it is illegal to drive without auto insurance if you do not comply with state regulations. If your coverage is canceled for any reason while you are registering your vehicle, you will need to purchase new insurance, pay a $500 uninsured motorist fee, or submit your license plate to the DMV to temporarily deactivate it. .
Virginia drivers who choose the uninsured motorist option must pay a $500 annual fee. If the fee is not paid, the DMV may suspend your driver’s license and vehicle registration. To have their licenses reinstated, drivers must pay $600 to the state and submit an SR-22 certificate. If you cause an accident while driving without insurance, or if you are a repeat offender, you may be required to file an FR-44, which has more severe penalties and conditions. Drivers may also have to pay an additional reinstatement fee to get their license back, and the SR-22 or FR-44 requirement typically remains in place for three years.
Additional Auto Insurance Coverage Options in Virginia
Many drivers in Virginia choose to purchase additional auto insurance for added financial protection. Below are some of the most common types of supplemental coverage in Virginia.
- Collision range: Collision coverage helps pay for repairs to your vehicle after an at-fault accident involving another vehicle or a stationary object. It also covers damage caused by rollovers and potholes. This usually includes a deductible, which must be paid if your claim is approved.
- Comprehensive coverage: Comprehensive coverage helps cover damage to your vehicle caused by events other than an accident, such as falling objects, vandalism, fire, theft, and water damage. Like collision insurance, it includes a deductible.
- Road service: Roadside Assistance may provide roadside services such as vehicle repair, towing, fuel delivery, and battery service. Many car insurance companies in Virginia offer this coverage.
- Rental car refund: Rental car reimbursement coverage will pay for your rental car if your personal vehicle needs repairs after a covered claim.
