Do You Have to Have Car Insurance in Virginia?
Learn About the Virginia Auto Insurance Requirements
Finding available car insurance coverage is critical to recovering money for damages from an automobile accident. Indeed, the other driver’s liability insurance policy is often the only way you can recover money for bodily injuries in a collision.
In addition, carrying enough insurance is vital to protecting your family’s assets and finances if you cause a car crash.
This article explains the minimum car insurance requirements in Virginia. Knowing the minimum coverage limits is the starting point for determining how much you might collect from the defendant driver if you prove their negligence caused the crash. Or, if you cause a wreck, whether these minimum liability insurance requirements will protect you if the accident victim has catastrophic injuries or dies from the crash.
If you have questions about your rights after a motor vehicle collision and want to speak with one of Virginia’s best car accident lawyers, complete this form or call (804) 251-1620 or (757) 810-5614.
Is Automobile Insurance Required in Virginia?
Yes.
Virginia Code Section 46.2-706 requires all registered automobiles to be insured by a liability insurance policy through an insurer licensed to do business in the state. And you should carry proof of insurance in your vehicle.
This car insurance requirement is a change to Virginia law.
In the past, drivers did not have to purchase liability insurance to drive a registered vehicle in Virginia. Instead, they could pay the Department of Motor Vehicles (DMV) an uninsured motor vehicle fee of $500.
This 2024 change to Virginia law helps auto accident victims. Insurance coverage is often necessary to collect an award of damages.
Mandatory Limits of Coverage: Does Virginia Require a Minimum Amount Liability Insurance Coverage?
Yes.
To purchase license plates or decals in Virginia, you must certify that the minimum car insurance requirements cover your vehicle.
Code Section 46.2-472 explains the minimum policy limits for motor vehicles.
For liability insurance policies effective through December 31, 2024, a motor vehicle owner must have this amount of insurance coverage:
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- $30,000 for injury or death of one person in the accident, and $60,000 for injury or death of two or more people in the same crash
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- $20,000 for property damages
Beginning January 1, 2025, every motor vehicle owner’s liability policy must provide the following coverage at a minimum:
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- $50,000 because of bodily injury to or death of one person in any one accident, and $100,000 if two or more persons suffer an injury or death in one accident
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- $25,000 for property damage or destruction
However, under Code Section 46.2-316(C), a driver convicted of specific criminal offenses (including voluntary or involuntary manslaughter resulting from the operation of a motor vehicle, driving while under the influence of intoxicants or drugs, or maiming while under the influence), must carry liability coverage double these minimum policy limits for three years.
In addition, Code Section 38.2-2206, titled Uninsured motorist insurance coverage, mandates that if you purchase uninsured motorist coverage, the minimum policy limits must equal but not exceed the liability insurance limits under your policy.
Example of Car Insurance Policy Limits
Personal injury attorneys and insurance industry professionals often use numbers to describe an insurance policy’s limits.
For example, you may hear the phrase 50/100 when discussing your lawsuit.
This means the driver whose negligence caused the motor vehicle crash has $50,000 in insurance coverage if one person suffers an injury in the collision and $100,000 in coverage if more than one person claims damages.
What Happens if the Other Driver’s Liability Policy Meets the Virginia Car Insurance Requirements But My Damages Exceed that Coverage?
Unfortunately, many auto accident victims will not receive the amount they deserve because the other driver’s policy liability limits are lower than the victims’ damages.
However, this inadequate insurance coverage does not cap the amount you might receive through a car accident settlement or trial.
In this situation, you must decide if you will accept a policy limits settlement offer from the other driver’s insurer or if you want to go to trial to obtain an excess verdict (an award more than the coverage) and then try to collect the excess amount from the other driver.
Often, accepting a policy limits offer from the insurance company is the best option when the defendant driver does not have assets or income to pay an excess verdict.
But if the defendant driver has significant assets, you may want to go to trial. That driver remains liable for all your damages. And pursuing that award makes sense if you can collect the money from the driver.
In addition, you may search for other policies, including first-party insurance coverage like uninsured/underinsured motorists coverage, to pay some of your damages.
What is the Penalty for Failure to Carry Liability Coverage that Meets the Virginia Car Insurance Requirements?
The Virginia DMV partners with the insurance industry to verify that registered vehicles have automobile liability insurance.
If a vehicle owner’s liability insurance coverage lapses while the vehicle is registered and is terminated or canceled, that owner must:
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- Reinsure the car with a new policy that meets the auto insurance requirements.
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- Deactivate the vehicle’s license plates or permanently surrender them to the DMV.
In addition, the uninsured vehicle owner will have their driving privileges suspended.
The only way to have them reinstated is to:
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- Pay a non-compliance fee of $600
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- File an SR-22/SR26 Financial Responsibility Certification for three years.
Need Help with an Auto Insurance Issue After a Crash?
My law firm helps auto accident victims find available insurance policies to pay for their damages.
If you have questions about how the Virginia car insurance requirements apply to your case, and whether the defendant driver satisfied them, call for a free consultation.
We are here to help.
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