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Overview
What Is the Minimum Amount of Auto Insurance You Need in Virginia?For the 7.7 million residents of Virginia, the state's position between Washington D.C. and the South means congested roads. Heavy traffic in places such as Richmond and Virginia increases the risk for fender benders and major accidents. The state's legislature and Department of Motor Vehicles have stepped up to protect drivers with minimum auto insurance laws. These laws are designed to protect covered motorists and their dependents from excessive medical bills and legal costs after serious accidents. Every Virginia driver should understand concepts such as uninsured motorist coverage and property damage liability when buying new policies.
Virginia's Minimum Liability Mandate
Every Virginia driver must have liability insurance from an approved insurer that meets the 25/50/20 formula. This formula covers up to $25,000 in injury costs for a single driver, $50,000 in injury costs for multiple drivers and $20,000 in property damage during an accident. Virginia drivers can ask their insurance agents for these coverage levels or set these levels when asking for insurance quotes from online insurance websites.
Uninsured Motor Vehicle Fee
If automobile insurance cannot be obtained due to financial problems, Virginia law allows drivers to pay an uninsured motor vehicle fee. At the time of registration, a Virginia resident can pay $500 to register her vehicle as uninsured for the next year. Every driver who pays this fee must certify that they do not hold an auto insurance policy and accepts full responsibility for payments accrued during an accident.
Consequences for Uninsured Drivers in Virginia
The Virginia Department of Motor Vehicles suspends driving licenses and registration immediately for drivers suspected of holding expired or insufficient auto insurance. To be reinstated as a legal motorist in Virginia, a driver would need to pay a $500 fee as well as a reinstatement fee at the discretion of the department. The driver in question would need to pick up a Financial Responsibility insurance Certificate for at least three years to complete reinstatement.
Virginia DMV Monitoring Tools
While state patrol officers can verify auto insurance plans during routine stops, the Virginia DMV uses several methods to observe auto insurance coverage for state residents. The state's primary monitoring tool is the Electronic Motor Vehicle Liability Insurance Reporting program, which allows certified insurers to note cancellations and changes by Virginia residents electronically. Virginia gives concerned drivers a voice with the Suspect Uninsured Accident form. This form can be used by Virginia motorist who suspects a fellow driver is uninsured, either because the driver fails to trade insurance information after an accident or the victim learns about the other motorist's lack of insurance during the claims process. After this form is submitted, the DMV sends a request for insurance information to the suspected party. If the motorist in question is uncovered or possesses inadequate coverage, the state suspends the vehicle registration until the matter is resolved.
Virginia Automobile Insurance Plan
The state of Virginia created an Automobile Insurance Plan in 1945 to protect young, low-income and high-risk drivers rejected by private auto insurers. This state insurance plan works with regional and national insurers to offer minimal coverage at above-market rates to applicants. Virginia requires applicants to be state residents, possess a Virginia driver's license and own a vehicle registered in Virginia before acceptance into the plan.
