Virginia Auto Insurance Requirements & Laws

Let’s check out the minimum Virginia insurance requirements who opt to carry policies, how drivers can legally drive uninsured, and everything else about the auto insurance laws in the Old Dominion. 

Those who opt to carry car insurance in Virginia must ensure their policies meet the minimum coverage requirements mandated by state law. While drivers must meet minimum coverage requirements, that only applies to those who haven’t opted out of the insurance system. Virginia is one of two states (the other is New Hampshire) that allows drivers to legally drive uninsured. Those opting out of carrying an insurance policy must pay a $500 annual uninsured motorist fee. Those who drive uninsured without paying the fee are illegally uninsured and may face serious penalties.

Those who opt to carry auto insurance policies must ensure they have at least $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, and $20,000 in property damage liability per accident, or 30/60/20 liability coverage. Drivers must also have at least $25,000 in uninsured or underinsured motorist bodily injury liability coverage per person (UMBI/UIMBI), $50,000 in UMBI/UIMBI per accident, and $20,000 in uninsured or underinsured motorist property damage coverage per accident, or 25/50/20 uninsured or underinsured motorist coverage (UM/UIM). Those who finance or lease their vehicles may be legally required to have comprehensive and collision coverages on their policies as a component of their leasing or financing agreement.

Virginians who maintain the minimum legal coverage are considered adequately insured. Failure to maintain a policy with the legal minimum amount of coverage or to pay the uninsured motorist fee may result in severe consequences like fines, license and registration suspension, or even jail time.

While car insurance laws in Virginia don’t require everyone to have insurance, those who take to the road uninsured, even legally uninsured motorists, are on the hook for every expense related to an at-fault accident. For those who maintain auto insurance policies that at least meet the minimum coverage requirements, their liability coverage will help cover the victim’s expenses should the policyholder cause an accident, and their UM/UIM coverage will help cover their own medical expenses should they be the victim in an accident caused by an uninsured or underinsured motorist.

Since Virginia isn’t a no-fault state but a tort state, drivers carry liability coverage to protect each other. No-fault states typically mandate coverage like a first-party medical benefit (FPMB) like personal injury protection (PIP) to cover the policyholder directly in the event of an accident, regardless of fault.

While Virginia is a tort state, meaning at least one driver must be deemed at fault in every accident, Virginians have significantly less freedom to sue each other than those in other tort states. Virginia is a contributory negligence state, meaning unless a driver is entirely at fault in an accident, the victim can’t sue. 

While maintaining a minimum coverage policy or paying the annual fee to be a legal uninsured motorist are viable, legal ways to get behind the wheel in the Old Dominion, neither option is the safest. While it’s always a good idea to do what’s best for your lifestyle when it comes to auto insurance, it’s often far more cost-effective to have a full coverage policy than a minimum coverage one or none at all. Plus, it’s much easier to budget for a premium on a full coverage policy than the catastrophic financial scenario an at-fault accident might present.

In Virginia, minimum auto insurance requirements mandate that drivers must have a policy that meets the legal minimum coverage limits or pay the annual uninsured motorist fee to legally opt out of the insurance system. Those who don’t opt out of the insurance system must have at least 30/60/20 liability coverage and 25/50/20 uninsured or underinsured motorist coverage (UM/UIM) on their auto insurance policies. 

While it’s legally necessary for those who don’t pay the annual uninsured motorist fee to at least have a minimum coverage policy, it’s also generally a much better financial decision to have a policy than not. The annual premium for the cheapest policy in the state is often far more affordable than the numerous expensive penalties associated with driving illegally uninsured. 

In Virginia, liability insurance requirements mandate all drivers to have at least 30/60/20 liability coverage and 25/50/20 UM/UIM coverage. Any policy with more coverage than the legal minimum limits is considered a full coverage policy.

Typically, full coverage policies in the Old Dominion will have a higher liability limit than what’s required, a higher UM/UIM limit than what’s required, and optional coverages like medical payments coverage (MedPay), collision coverage, and comprehensive coverage. 

While having a policy suitable for your needs and budget is crucial, a full coverage policy is often a much better investment than a minimum coverage one or the uninsured motorist fee. The average cost of a full coverage policy in Virginia is about $1,340 annually, about 20% below the national average. Here at Clovered, we believe investing in one’s safety is never a bad idea.

Virginia auto insurance regulations mandate coverage for all drivers on the road who don’t legally opt out of the insurance system by paying the uninsured motorist fee. State law requires coverage to ensure most people on the road will be protected in the event of an accident.

Typically, mandating coverage helps mitigate the stress on a state’s insurance and court systems. However, since Virginia is a contributory negligence state, drivers don’t have the same freedoms as they do in other states when it comes to legal action. Since victims can’t sue the at-fault party unless they’re 100% at-fault, the court systems don’t experience nearly the same overwhelm as courts in other tort states. 

Since drivers are restricted in how they may pursue legal action, the insurance systems bear most of the burden of compensating accident victims. Thus, the state requires most drivers to carry insurance so they may have some protection on the roads. 

Yes, the car insurance requirements in Virginia mandate coverage for drivers who don’t legally opt out of the insurance system by paying the uninsured motorist fee. All drivers who opt to carry insurance must have at least 30/60/20 liability coverage and 25/50/20 UM/UIM coverage. Driving illegally without insurance in the Old Dominion can lead to fines, license and registration suspension, and even jail time. 

The stain of illegally driving uninsured on one’s insurance history and driving record can make it difficult to get a policy with one of the top insurers in the state. High-risk drivers, or those who have proven themselves reckless with the law, may need an SR-22 filed on their behalf, which can cause one’s premiums to nearly double or triple the average rate. 

Yes, all drivers are required to maintain the Virginia minimum car insurance coverage if they don’t pay the annual uninsured motorist fee. Failure to abide by the law can result in serious legal penalties and the risk of financial ruin with just one at-fault accident.

Coverages like UM, property damage liability, and bodily injury liability in Virginia all follow the car rather than the driver. Typically, the only coverage that follows the driver rather than the car is a FPMB like PIP or MedPay. However, that doesn’t mean if someone steals your insured vehicle, they’d be covered in an accident.

Coverage only extends to a policyholder’s passengers or drivers who have permission to operate the insured vehicle. So, your friend who borrows your car to pick you up after you had too many ales at Colonial Williamsburg is covered by your policy should they get into an accident, but if a rogue Civil War reenactor fleeing the red coats steals your steed, they’re not so lucky. 

The best way to build a policy that aligns with the car insurance requirements in Virginia is to get and compare quotes online. By getting and comparing quotes from several insurers, you can decide what type of policy is the best bang for your buck and which insurer is right for your lifestyle.

Lucky for you, we’re quoting experts here at Clovered. We even have a free quoting tool you can use to access your unique quotes in minutes. If you prefer to speak with a professional about your quote, one of our licensed agents will be happy to assist you at 833-255-4117 or agent@clovered.com.