Virginia car insurance laws now require all drivers to carry auto insurance, eliminating the previous option to pay an uninsured motorist fee. This change reduces the number of uninsured drivers but makes it even more important to understand your coverage and legal options after an accident.
This article breaks down Virginia’s insurance requirements, penalties for driving uninsured, and how these laws impact accident claims.
If you’re involved in a crash, a car accident lawyer in Virginia from Tronfeld West & Durrett can help you recover compensation, whether the at-fault driver lacks insurance or an insurer tries to deny your claim.
Is Auto Insurance Mandatory in Virginia?
Yes, Virginia car insurance laws now require all drivers to carry auto insurance. As of July 1, 2024, the state eliminated the option to pay an uninsured motorist fee, making insurance mandatory for all registered vehicles to ensure financial responsibility against injuries and property damage in the event of an accident.
Previously, Virginia allowed drivers to legally operate a vehicle without insurance by paying a $500 uninsured motor vehicle (UMV) fee to the Department of Motor Vehicles (DMV). However, this fee didn’t provide any insurance coverage, it simply allowed the driver to legally use the road without a policy.
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Virginia Requires Car Owners to Carry Automobile Liability Insurance
A 2023 study by the Insurance Research Council (IRC) found that 14.0% of drivers nationwide were uninsured in 2022, meaning nearly one in seven motorists lacked coverage. Virginia’s uninsured motorist fee certainly contributed to this issue, as some drivers chose to pay the fee instead of carrying an active policy.
As per Virginia Code § 46.2-706, all vehicle owners must now provide proof of insurance when registering their vehicle. With the elimination of the uninsured motorist fee in 2024, drivers can no longer legally operate a vehicle without coverage.
Current Minimum Coverage Requirements
Before the 2025 insurance law changes, Virginia’s minimum liability coverage limits were:
- $30,000 for bodily injury or death per person
- $60,000 for bodily injury or death per accident
- $20,000 for property damage per accident
Starting January 1, 2025, Virginia’s new minimum insurance requirements will increase to:
- $50,000 for bodily injury or death per person
- $100,000 for bodily injury or death per accident
- $25,000 for property damage per accident
These higher coverage limits provide better financial protection for accident victims, ensuring drivers have more liability coverage to cover medical expenses and damages. If you’re unsure whether your policy meets these new requirements, review your coverage now to stay compliant and avoid penalties.
Changes to Car Insurance Requirements in 2025
Virginia’s auto insurance laws have undergone major changes. On the one hand, Senate Bill 951 eliminated the uninsured motorist fee on July 1, 2024, requiring all drivers to carry insurance.
Additionally, on January 1, 2025, the state increased minimum liability coverage limits to provide stronger financial protection for accident victims. These updates ensure all registered vehicles have adequate coverage, reducing the risks associated with uninsured drivers.
What Type of Insurance Satisfies Virginia’s Financial Responsibility Law?
Virginia law allows multiple ways for drivers to comply with financial responsibility requirements, including:
- Standard auto insurance policies issued by licensed insurers.
- Self-insurance for companies or individuals with large vehicle fleets who meet specific financial thresholds.
- Surety bonds issued by state-approved providers.
- Commercial auto insurance policies for rideshare and delivery drivers, ensuring they’re covered while working.
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What Happens If You Don’t Have Car Insurance in Virginia?
Failing to comply with Virginia’s insurance requirements can result in severe penalties, including fines and license suspension. If caught, you have 30 days to provide proof of insurance or face further penalties.
Additionally, uninsured drivers involved in an accident may be personally liable for all damages, making it difficult to recover financially after a crash. Even if the accident wasn’t your fault, driving without insurance can still result in penalties.
Legal Penalties and Fines for Uninsured Drivers
- $600 fine for failing to carry insurance: The DMV imposes a $600 noncompliance fee if you drive uninsured, which must be paid before reinstating your license and registration.
- License suspension until proof of insurance is provided: The DMV will suspend your driver’s license until you submit proof of valid insurance and meet all reinstatement requirements.
- SR-22 filing requirements for three years: You must file an SR-22 certificate for three years, proving you maintain continuous insurance coverage or risk further penalties.
- Vehicle registration suspension: The DMV suspends your vehicle registration and plates, preventing you from legally driving until you provide insurance proof and pay all required fees.
- Personal financial liability for accident damages: If you cause an accident while uninsured, you must pay for all damages out of pocket, which could include medical expenses, repairs, and lawsuits.
If you need legal guidance after an uninsured motorist crash, a car accident lawyer in Virginia from Tronfeld West & Durrett can assess your case and help explore your options.
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How an Uninsured Driver Affects Your Accident Claim
If an uninsured driver hits you, recovering compensation can be difficult because there is no insurance coverage to pay for your medical bills, vehicle repairs, or other losses.
However, uninsured/underinsured motorist (UM/UIM) coverage from your own policy can help cover these costs. This type of coverage applies when the at-fault driver lacks insurance or doesn’t have enough to fully compensate you.
In some cases, filing a lawsuit against the at-fault driver may be necessary, but collecting compensation depends on their financial situation. If they lack the ability to pay, there are other legal options to secure your claim, such as placing a lien on their property.
If you’re unsure how to proceed, our attorneys can explain how car accident settlements work and discuss your legal options during a free consultation to help you seek the compensation you deserve.
Need Help Understanding Virginia Car Insurance Laws? Contact Us Today
Car insurance laws in Virginia are complex and can lead to financial and legal difficulties. Whether you need assistance with an insurance dispute, accident claim, or legal defense, an experienced car accident lawyer in Virginia can help.
At Tronfeld, West & Durrett, we have over 50 years of experience representing accident victims. Our legal team has secured significant settlements and verdicts (as shown in our case results) and is prepared to fight for full and fair compensation.
Contact us today for a free consultation to get started!
Call or text 800-321-6741 or complete a Free Case Evaluation form