Virginia Car Insurance Guide

If you are moving to Virginia or buying a car for the first time, learning about auto insurance requirements is important.

While Virginia is one of the few states in the nation that allows vehicle owners to drive their vehicles uninsured, you must pay a fee to take this risk. If you do not wish to pay a fee to drive without insurance, you must comply with the state’s insurance requirements.

Every licensed company in Virginia has its own rates, but each company is required by law to offer all applicants the state’s minimum requirements. Insurance companies will also offer additional coverage options that provide drivers with a higher level of protection.

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Continue reading this consumer guide to discover how you can build the best policy for you and your family.

What is a financial responsibility law?

Financial responsibility laws are laws that require drivers to prove that they have enough money to pay for damages that they may cause while operating a vehicle that is registered in the state.

Because Virginia has a financial responsibility law, drivers must carry motor vehicle insurance or file a cash deposit in order to comply with this section of the Motor Vehicle Code.

How much auto insurance is required in Virginia?

The most common way to comply with the financial responsibility law that is mandated by Virginia officials is to buy auto insurance.

State law says that all registered vehicle owners must buy a minimum amount of third-party liability insurance.

This coverage pays for third-party damages that you are responsible for in an auto-related accident. The following are the minimum required amounts of liability insurance:

• Bodily injury liability – $25,000 per person and up to $50,000 per accident
• Property damage liability – $20,000 per occurrence
• Uninsured motorist protection – $25,000 per person and up to $50,000 per accident

What is an uninsured motor vehicle fee?

Virginia is one of the few states where you can pay a fee to legally drive without insurance. If you don’t want to purchase a policy, you can pay an uninsured motor vehicle fee and still be in compliance with the law.

The $500 uninsured motor vehicle fee is due not only when you initially register your vehicle but also each time you renew your registration.

Paying the fee to get plates and drive without insurance does not mean that you are paying for coverage; it is just a way to avoid paying insurance premiums. You must pay for the damages you cause if you are in an accident.

What does liability insurance pay for?

Liability insurance isn’t designed to pay for your own medical bills and your own car repairs. It is required by the state to ensure that you can pay for the damages that are incurred by other parties after you are deemed primarily at fault for the loss.

Here’s how the required coverage options work:

• Bodily injury – Pays for third-party medical expenses, lost wages, funeral expenses, and court settlements after someone is injured in an at-fault accident.
• Property damage – Pays for the cost to repair or replace property owned by others when such property is damaged or totaled in an at-fault accident.

What does Uninsured Motorist Protection cover?

Uninsured motorist protection is required in Virginia. This required coverage is important in protecting insured drivers from losses that are caused by uninsured drivers, regardless of whether they have or have not paid the uninsured motor vehicle fee.

If you are in an accident, the coverage will pay for your medical expenses, funeral expenses, and lost wages.

What other types of coverage can you buy for extra protection?

When purchasing auto insurance, you can buy a basic policy, or you can add coverage options on to a basic policy for additional protection. If you don’t want to be vulnerable in an accident, you should find out how much additional coverage options will cost you.

The following are some additional types of protection that can be purchased:

• Comprehensive – Comprehensive coverage pays if your car is damaged in various types of accidents, some of which include fire, theft, vandalism, hail, glass breakage, wind, falling objects, and live animals.
• Collision – Collision pays to repair your car if it’s damaged when it collides with an object or when it overturns.
• Medical expense benefits – Medical expense benefits pay for all reasonable medical and funeral expenses if you or your passengers have been injured or killed in an accident while driving, biking, or riding in a car.
• Loss of income benefits – Loss of income benefits pay you or your family members up to $100 per week for up to one year for lost income.
• Transportation expenses – Transportation expense coverage pays for a rental car or a temporary substitute vehicle after you have experienced a covered loss.

How to Maximize Your Insurance Discounts

Most consumers want to buy the greatest level of protection for the least amount of money. If you’re shopping for insurance, don’t compromise your level of protection just to keep your premiums low.

Building an affordable policy with a broad level of coverage is possible if you take advantage of discounts that the carriers offer. Here are some valuable tips:

• Insure all of your vehicles with the same carrier for extra vehicle and multi-car discounts.
• Try to insure your property with your car insurance carrier to receive a multi-line discount.
• Take an optional driver training program if you are an inexperienced driver or a mature driver over 55 for a discount that can last up to three years.
• Take advantage of low mileage discounts if you have a short commute or you don’t drive to work or school.
• Inform your insurance agent if you have an aftermarket alarm system.
• If you have driving experience outside of Virginia, give your agent your previous license number for more experience credits.
• If you have a teen or young adult driver on your policy, provide your insurance agent with his or her grades to see if you qualify for a good student discount.
• Take traffic school when you qualify so that you can keep infractions from being reported on your record.

What makes a good insurance company?

Not all auto insurance companies in the state of Virginia are created equal. While price is important, it’s also important to do business with a carrier that you can trust to pay your claims in a timely manner.

Here are a few tips to use so that you can choose the right insurer:

• Check the company’s financial strength rating through A.M. Best or Moody’s to see if the company is financially stable.
• Verify that the company is licensed and in good standing with the state department.
• Call the company before you become a customer to see if they offer good customer service.
• Check consumer rating grades through J.D. Power and Associates to see if the company is respected by other consumers.

Why should you compare insurance policies?

After you research each carrier, you should compare premiums with at least three to five insurers. Every company charges their own rate and some have more competitive rates than others.

When you compare premiums, you can ensure that you are getting the best deal and the greatest level of protection.

Comparing insurance premiums can take a great deal of time. If you want to see how much you’ll pay through certain Virginia providers, use an online rate comparison tool for dozens of instant quotes at once. Once you review the rates, you can decide which policy is right for you.

Start comparing auto insurance rates now using the FREE price comparison tool below!