Virginia Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist the state of Virginia?

• In the state of Virginia, in order to purchase license plates or decals, you must certify that the vehicle is covered by the minimum insurance requirements or pay an uninsured motor vehicle (UMV) fee of $500. The UMV fee does not provide any insurance. It only allows the driver to drive an uninsured vehicle at his own risk.
• The minimum insurance requirements in the state of Virginia are $25,000 bodily injury/death of one person, $50,000 bodily injury/death of two or more persons, and $20,000 for property damage
• Auto insurance requirements also apply to antique motor vehicles as well.
• All Virginia drivers must carry proof of insurance or proof of UMV at all times. If you are caught driving without insurance or if you have not paid UMV fee, your driving and vehicle registration privileges will be suspended. To be reinstated, you must pay a $500 statutory fee, file a Financial Responsibility Insurance Certificate (SR-22) with DMV for three years, and pay a reinstatement fee, if applicable.
• An insurance carrier that is authorized to conduct business in Virginia must underwrite all Virginia auto insurance policies.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Virginia, your policy must include minimum liability coverage of:

$25,000 bodily injury/death of one person, 
$50,000 bodily injury/death of two or more persons,
and
$20,000 for property damage

What are the Rental Car Insurance Requirements?

In the state of Virginia it is illegal to operate any motor vehicle without proof of insurance or proof that the UMV fee has been paid. The rules also apply to rental cars. It is important to keep in mind that most Virginia auto insurance policies include adequate coverage for rental cars. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you may purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Uninsured/Underinsured Motorist Coverage is not required in the state of Virginia. Because Virginia is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What are the rules pertaining to the exclusion from coverage of a driver living in household?

In the state of Virginia, it is legal to exclude a member of your household from your policy. It is also legal for your auto insurance company to write a policy that excludes household members that may be considered high-risk due to driving history, etc. These exclusions are listed in the exclusions section of the policy, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. Because a household exclusion means that the excluded person will not be covered under any circumstances, including emergencies, it is extremely important to examine your auto insurance policy carefully before signing on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If your insurance lapses during your registration period in the state of Virginia, you must reinsure the vehicle immediately, pay the uninsured motor vehicle fee or surrender the license plates to DMV. It is important to keep in mind that the Virginia DMV monitors insurance coverage through its Insurance Verification Program. It is important to keep in mind that the Virginia DMV monitors insurance coverage through its Insurance Verification Program. Virginia insurance carriers provide DMV with electronic updates of insured information and vehicle description when they lapse or cancel, and when they add and write new coverage for motor vehicles registered in Virginia.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the Commonwealth of Virginia, it is legal for auto insurers to use Personal Credit History to help determine which products they will offer as well as rates. Your Personal Credit History may also be used to determine whether you will be making monthly or quarterly payments or if you will be required to pay the entire premium upfront. Personal Credit History is also used to create an “insurance risk score.” This score also helps determine your auto insurance rates. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. That said, Personal Credit History is not the only assessment tool Virginia auto insurance companies may use. They also consider age, gender, where you live, car make and model, how much you drive, and driving record.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Virginia follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because Virginia is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, Virginia resident’s average insurance premium was approximately $685, the 33rd most expensive in the nation. This was down 2.1% from the previous year. The national average was $817.

Sources

Insurance Information Institute

Virginia Department of Motor Vehicles