Laws for Auto Insurance in Virginia

Virginia Law Does Not Require Motorists to Have Liability Insurance

Regarding auto insurance in Virginia, liability coverage insurance covers the cost of injury and damage to property that is a result of an auto accident if the policyholder is to be found at fault. Virginia is one of the few states that do not require their motorists to maintain an insurance policy, but they do have other requirements they must follow.

Fee for Uninsured Motorists

• Drivers who live in the state of Virginia who choose to forgo a traditional auto insurance in Virginia policy must pay a fee of $500 to Virginia’s Department of Motor Vehicles every year the car must be re-registered. This fee does not protect the driver in any way and not having insurance may leave the motorists open to have garnishes placed on their wages as well as asset seizure if they cause an accident and are unable to pay for the damages.

Insurance Requirements

• The majority of drivers choose to purchase auto insurance  in Virginia. For more information please refer to “How Cheap Can Be Auto Insurance in Virginia?”. Virginia has a minimum liability limits to cover damages caused by drivers that are uninsured or underinsured. This insurance also protects drivers against accidents caused by a hit and run.

Penalties

• For those that reside in Virginia who do not maintain auto insurance or pay their fee to the DMV may face a suspended license and registration as well as a fine up to $500. The DMV may also impose a fee to restore your driving privileges. These drivers must then obtain liability auto insurance in Virginia and submit proof to the DMV every year for three years.

Insurance Surcharges

• If you are involved in an auto accident or receive other traffic violations you may receive higher premiums. Virginia’s law permits that auto insurance carriers are able to impose a thirty six month surcharge. Virginia insurance companies are prohibited from increasing premiums for insured drivers involved in an auto accident for which they were not at fault.