Average Car Insurance Cost in Virginia

Insurers use various factors to determine a policyholder’s rates; some directly correlate with the driver, and others don’t. Let’s check out exactly how insurers in the Old Dominion determine premiums, how the average Virginia car insurance policy differs from the national average, and how you can get your premiums to fall within the average range or, even better, far below.

On average, car insurance in Virginia costs about $1,340 annually for a full coverage policy or about $670 annually for a minimum coverage one. Typically, insurers offer base rates near the state average if the policyholder has a clean driving record and isn’t considered high-risk. Depending on a few key factors, some drivers may have premiums far outside the state average rate.

Premiums vary from driver to driver, policy to policy, and state to state. While one driver may pay rates on par with the state average, another may pay far more or less. Insurers use a range of factors about each driver to determine one’s rates, some of which may be related to one’s driving history or habits, and others are entirely unrelated. For example, insurers may use one’s insurance history, driving record, age, gender, or ZIP code, among other factors, to determine one’s rates.

By analyzing these unique factors, insurers assess each driver’s risk of filing a claim. If a driver is at high risk of filing a claim, they will likely pay higher-than-average premiums to compensate for that risk. Drivers with a poor insurance history or driving record, especially those with a history of driving uninsured or an SR-22 on file, will often pay premiums nearly double or triple the average rate to make up for their high risk.

While it can be overwhelming to make room in your budget for an insurance premium, especially if you’re considered high-risk and have higher-than-average premiums, it’s crucial to remember that premiums vary over time. While your premiums may be higher than average for a few years, they’ll likely decrease over time.

Before selecting the type of policy you’ll bind, it’s important to consider what you value most in a policy. Drivers who value cost over coverage will typically bind a minimum coverage policy from an insurer that offers lower-than-average base rates. In contrast, drivers who value coverage over cost will typically bind a full coverage policy from an insurer that offers plenty of additional coverage types. Those who value cost and coverage equally will likely bind a full coverage policy from an insurer that offers plenty of stackable discounts so that they may get excellent coverage at a lower-than-average rate. 

It’s essential to bind a policy that makes the most sense for your lifestyle and your budget and makes you feel the most confident behind the wheel as you can be. Here at Clovered, we typically err on the side of caution and prefer a full coverage policy over a minimum coverage one. While the premiums can carry a bit of sticker shock, it’s far easier to budget for an annual premium than the costs associated with an accident while driving underinsured.

On average, car insurance in Virginia costs about $1,340 annually for a full coverage policy, which is the average type of policy held amongst residents. Typically, Virginians bind full coverage policies from insurers that offer lower-than-average base rates with additional, optional coverages and discounts stacked to reduce premiums further. While all drivers are legally required to maintain a minimum amount of coverage (or opt to be a legally uninsured driver by signing a waiver and paying an annual fee), many drivers decide to bind full coverage policies for the range of protection they provide.

The minimum legal amount of car insurance coverage required in Virginia is $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, $20,000 in property damage liability per accident (30/60/20 liability coverage), $25,000 in uninsured or underinsured bodily injury coverage (UMBI/UIMBI) per person, $50,000 in UMBI/UIMBI per accident, and $20,000 in uninsured or underinsured property damage coverage (UMPD/UIMPD) per accident, or 25/50/20 UM/UIM coverage.

Since Virginia isn’t a no-fault state but rather a tort state, all drivers must have a minimum liability coverage limit but aren’t required to have a first-party medical benefit like personal injury protection (PIP). Since Virginians aren’t required to carry a no-fault coverage, the average premium is on the more affordable end of the national premium spectrum, as mandatory no-fault coverages tend to increase rates.

When determining the average range of premiums in a state, insurers typically look at a few key factors, like population, population density, and the population of uninsured drivers in the state. If a state has a higher-than-average number in any of these categories, lawmakers may sign a no-fault law into effect to mitigate any strain on the legal or insurance systems. 

The average premium in the Old Dominion stays below the national average because the state doesn’t have any densely populated cities or a higher-than-average number of uninsured drivers. While Virginia is one of the most populated states, its low population density and number of uninsured drivers help keep premiums lower than average for residents.

In Virginia, car insurance rates for a full coverage policy fall in the general area of $1,340 annually. For a minimum coverage policy, drivers may expect to pay, on average, about $670 annually. However, it’s important to note that premiums are the only thing policyholders must pay out of pocket regarding their policies. Policyholders must also make room in their budgets for the deductible on their policies, should they ever need to file a claim.

Generally, policies with low deductibles have high premiums, and policies with high deductibles have low premiums. Neither option is better than the other; it’s mainly a matter of personal preference.

On average, car insurance rates in Virginia are about 20% below the national average, so comparatively, no, insurance isn’t expensive in the state. Auto insurance isn’t costly in the state because there’s a lower-than-average number of uninsured drivers and a low population density in the Old Dominion, making drivers less likely to get into accidents than the national average.

However, if your premiums are higher than the state average, you likely have a few characteristics working against you to raise your premiums. For example, those in densely populated ZIP codes, like Richmond or Chesapeake, may not be eligible for the cheapest policy in the state because they’re more likely to get into an accident when driving in their area. Similarly, drivers with a history of at-fault accidents or driving uninsured may be considered high-risk and, therefore, charged higher-than-average premiums. 

If you’re searching for a full coverage policy at or below the state average rate, the best way to find the right one within your budget is to get and compare quotes online. By getting and comparing quotes online, you can see all the rates and policies from the state’s top insurers for which you’re eligible, making it easy to make the most informed decision about your policy.

Luckily for you, quotes are our thing here at Clovered. We even have a free quoting tool you can use to view and analyze your unique quotes in minutes. If you’d rather speak with a professional about your quotes, you can chat with one of our licensed agents at 833-255-4117 or agent@clovered.com.