Minimum insurance required in Virginia

The Virginia Department of Motor Vehicles (DMV) requires all drivers to carry minimum liability insurance. When you register a new vehicle, you must comply with state laws by purchasing a policy that carries the following minimum insurance coverage:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $20,000 property damage liability per accident

This coverage will typically read as “30/60/20” on your policy and the DMV recommends that you always carry proof of insurance in your vehicle.

It may also be worth noting that Virginia’s state minimum insurance requirements are scheduled to increase on January 1, 2025. For policies that renew on or after this date, the new Virginia insurance requirements will be:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $25,000 property damage liability per accident

Virginia currently allows drivers to operate an uninsured vehicle at their own risk, but requires an uninsured motor vehicle (UMV) fee to be paid each time you renew your vehicle registration. This fee does not provide any coverage in the event of an accident. Even though you technically can drive without insurance if you pay the UMV fee, you may want to consider purchasing a policy, anyways. Even minimum coverage could provide some financial protection if you’re the driver in an at-fault accident. Considering the low average cost of insurance in Virginia ($494 per year for minimum coverage, according to Quadrant Information Services), it may make more sense to take the money you would use for your UMV fee and put it towards a policy instead.

It’s worth noting that Virginia recently passed a bill that will no longer allow uninsured vehicles to be registered as of July 1, 2024.

Penalties for driving without insurance in Virginia

To encourage motorists to only operate an insured vehicle, Virginia imposes strict penalties when a vehicle is found to be uninsured. If you drive an uninsured vehicle, you can incur expensive fees and even lose your license. Penalties for driving without insurance in VA include:

• Paying a $600 noncompliance fee to the DMV
• Obtaining a form SR-22 certificate for three years
• Paying reinstatement fees, if applicable, on your license, registration and plates

Additionally, insurance companies usually consider a lapse of insurance as a high-risk rating factor. As such, failing to maintain continuous coverage could result in an increase in average premiums.

What is an SR-22?

An SR-22 (Financial Responsibility Insurance Certificate) is essentially a required document that will be filed with the DMV that ensures you are carrying the legally required insurance coverage. This certificate could also indicate to auto insurance companies in Virginia that you are a high-risk driver, which typically increases the cost of your insurance premiums. If the state requires you to carry an SR-22, you must do so for three continuous years. Shopping for insurance may be challenging because some companies may refuse to issue you a policy when you require an SR-22 form.

Virginia’s online insurance verification system

The VA DMV utilizes an Insurance Verification Program to confirm that all registered vehicles in the state carry the required liability insurance. This program requires all insurance carriers to send proof of insurance to the DMV when a new policy is purchased or send notice when a policy has been canceled. If a vehicle is shown to not have insurance, the DMV will send a notice to the registered owner.

If you receive a notice that your vehicle is uninsured, you must immediately provide proof of insurance. If you do not respond or if there is no insurance, the DMV will issue an Order of Suspension and you will only have 30 days to pay the noncompliance penalty fee and acquire an SR-22 certificate. If the Order of Suspension does go into effect, a reinstatement fee must also be paid before the DMV will reinstate your driving privileges.

Getting into an accident without insurance

Although the minimum liability limits are designed to cover the other driver if you cause an accident, most insurance agents and financial advisors will suggest that you purchase higher amounts of coverage than required to offer more sufficient financial protection. Getting into an accident without any insurance can be detrimental. If you cause an accident resulting in medical expenses or property damage, you could be solely responsible for covering these costs – which can easily climb to thousands of dollars depending on the severity of an accident. The other driver may even file a lawsuit against you.

On top of that financial burden, the driver of the other vehicle could report the accident to the DMV due to lack of insurance. The DMV will then send you a notice requiring proof of insurance. Failure to provide proof of coverage will result in a $600 noncompliance fee and suspension of your driver’s license, registration and plates. Additionally, you will be required to maintain an SR-22 certificate for three years, which will likely result in higher insurance premiums for the policy you must now acquire in order to reverse the suspension. Reinstatement fees may also apply.