Most drivers assume that if they’re hit by another car in Virginia, the at-fault driver’s insurance will cover the damage. But until very recently, that wasn’t always the case. For decades, Virginia allowed drivers to legally opt out of carrying auto insurance by paying a modest uninsured motorist fee. In theory, these drivers were assuming full personal responsibility for any harm they caused. In practice, many didn’t have the financial means to pay after causing a serious crash.
Our car accident lawyers at Tronfeld, West & Durrett have witnessed firsthand how this outdated policy left injury victims facing unpaid bills, complex insurance claims, and years of financial hardship. This article examines Virginia’s former opt-out system, the law’s 2024 changes, and crucial information for accident victims going forward.
What Was Virginia’s Opt-Out Auto Insurance Policy?
Virginia was one of only two states that allowed vehicle owners to skip purchasing insurance altogether by paying a $500 uninsured motor vehicle fee. Once paid, the state allowed those drivers to register and operate a vehicle without coverage, placing full liability for any damages squarely on their shoulders. As outlined in § 46.2-706 of the Code of Virginia, this system meant there was no guarantee a crash victim could recover compensation from the driver who caused the accident.
Instead, injured individuals had to rely on their own uninsured motorist coverage, which often wasn’t enough to pay for hospital stays, surgeries, lost wages, or long-term care needs.
What Was Virginia’s Opt-Out Auto Insurance Policy?
While opting out might have reduced costs for uninsured drivers in the short term, it created a wide range of downstream problems that affected everyone else on the road.
The presence of uninsured drivers in the system led to higher auto insurance rates for everyone else due to a smaller risk pool and greater reliance on UM/UIM policies. Moreover, victims in collisions involving uninsured drivers often faced significant delays in coverage or were left footing the bill entirely.
Drivers Bought Less Coverage to Offset Rising Costs
As insurance premiums increased, many drivers responded by selecting the lowest possible policy limits, creating large underinsurance gaps after serious accidents.
Unpaid Judgments and Bankruptcy
When an uninsured at-fault driver caused a crash and couldn’t afford to pay a settlement or court judgment, many turned to bankruptcy protection to wipe the debt clean. That left innocent victims with no legal path to recover compensation, regardless of how severe their injuries were.
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How the Law Changed: Mandatory Auto Insurance in Virginia (Effective July 1, 2024)
In response to the growing number of underinsured and uninsured claims and the hardship this caused for crash victims, Virginia lawmakers passed a critical reform in 2023 that eliminated the opt-out option. As of July 1, 2024, all drivers must carry active auto insurance to legally register a vehicle in Virginia.
This new law is expected to significantly improve injury victims’ ability to recover compensation from at-fault drivers.
- In 2024, Virginia’s minimum required coverage remains at $30,000 for injury or death of one person, $60,000 for two or more people, and $20,000 for property damage.
- But beginning January 1, 2025, those minimums will increase to $50,000 / $100,000 / $25,000 under § 46.2-472, offering stronger financial protection for crash victims.
Why These Changes Matter for Car Accident Victims
For decades, injury victims bore the brunt of a policy that favored affordability for uninsured drivers over compensation for those harmed in serious accidents. Mandatory insurance helps shift that balance back toward justice for victims.
Improved Access to Compensation
More drivers will be covered under active liability policies, reducing the number of uninsured claims and expanding the chances of full recovery.
Less Burden on UM/UIM Policies
Injury victims will be less dependent on their own insurance and more able to file direct claims against the at-fault driver’s provider.
Fewer Unpaid Judgments
With mandatory coverage, fewer at-fault drivers will be judgment-proof or able to sidestep liability through bankruptcy.
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What Happens If the At-Fault Driver Still Doesn’t Have Insurance?
Even though Virginia’s opt-out system is no longer in place, some drivers may still ignore the law and get behind the wheel without insurance. In those situations, crash victims need to understand what legal options remain.
Penalties for Driving Without Insurance
Uninsured drivers face serious consequences under the new law. This includes fines, license suspension, and reinstatement fees. More importantly, they remain personally liable for the full cost of damages if they cause an accident.
Relying on Your Own UM/UIM Coverage
If you’re hit by someone who is driving illegally without insurance, your own uninsured/underinsured motorist (UM/UIM) policy becomes your financial safety net. Under § 38.2-2206 of the Virginia Code, insurers must provide UM/UIM coverage equal to your liability limits unless you decline it in writing. This is why it’s so important for Virginia drivers to regularly review their policies and understand what protection they actually have.
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Why Underinsured Motorist Coverage Is Still Important
Even with mandatory insurance in place, many drivers only carry the minimum required coverage, and that might not come close to covering the full cost of a serious accident.
If your medical bills, lost income, and other losses exceed the at-fault driver’s $30,000 or even $50,000 limit, your underinsured motorist coverage helps cover the difference.
UIM Fills the Gap
This type of coverage steps in when another driver’s policy comes up short. It’s especially important in crashes involving long-term injuries or multiple claimants sharing a single policy.
At Tronfeld, West & Durrett, we’ve worked with countless clients who never expected to rely on their UM/UIM coverage but were glad they had it when an at-fault driver’s insurance ran out fast.
Can I Still Be Left Without Compensation Under the New Law?
The end of Virginia’s opt-out option is a major step forward, but it doesn’t eliminate every risk. There are still scenarios where victims may struggle to recover what they’re owed.
Out-of-State or Illegally Uninsured Drivers
Virginia’s insurance mandate only applies to in-state registrations. If you’re hit by a driver from another state or by someone driving without coverage in violation of the law, you could still be forced to fall back on your own UM/UIM policy.
Delays and Denials From Insurance Companies
Even when coverage exists, insurance companies don’t always play fair. They may dispute liability, question the extent of your injuries, or delay payment to pressure you into settling for less. In these situations, working with an attorney who understands how insurers operate can make a significant difference.
How a Car Accident Lawyer at Tronfeld, West & Durrett Can Help
If you’ve been hit by an uninsured or underinsured driver or if you’re simply unsure whether the new laws will impact your claim, don’t wait to get answers. An experienced car accident attorney at Tronfeld, West & Durrett is here to help. Our team is familiar with the details of UM/UIM policies, subrogation rights, and insurance company strategies.
Contact us today to schedule a free consultation. We’ll review your case, walk you through your options, and fight to ensure you get the compensation you deserve.
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