Are You Required to Have Car Insurance in Virginia?

If you register a vehicle in Virginia, you must carry a liability insurance policy that meets the state’s minimum limits. That is the full extent of the car insurance requirements in Virginia for ordinary drivers: there is no longer a fee you can pay instead, and every policy sold in the Commonwealth has to include uninsured motorist protection on top of liability.

The Uninsured Motor Vehicle Fee Is Gone

For decades, Virginia let drivers skip insurance entirely by paying a $500 Uninsured Motor Vehicle fee to the DMV. The fee bought legal registration for a year but no actual coverage, so a driver who caused a crash was personally responsible for every dollar of damage.

Senate Bill 951, passed in 2023, repealed that option effective July 1, 2024.1Virginia’s Legislative Information System. SB951 – 2023 Regular Session Since that date, the DMV no longer collects the UMV fee, and every registered vehicle must be backed by a liability policy.2Virginia Department of Motor Vehicles. New Laws Take Effect, Today, July 1, 2024 If you used to rely on the fee, you need an active policy to keep your registration valid.

Minimum Liability Limits

Virginia raised its minimum coverage amounts for all policies issued or renewed on or after January 1, 2025. The current floors are:3Virginia Department of Motor Vehicles. Insurance Requirements

  • $50,000 for bodily injury or death of one person in an accident you cause
  • $100,000 total for bodily injury or death when more than one person is injured
  • $25,000 for property damage per accident

The previous minimums were $30,000/$60,000/$20,000. If your declarations page still shows the older figures, call your insurer and update the policy. A policy below the current floor leaves you out of compliance even though you technically have insurance.

Uninsured and Underinsured Motorist Coverage Is Mandatory

Every auto policy sold in Virginia must include uninsured motorist (UM) and underinsured motorist (UIM) coverage. Your insurer cannot leave it out. By default the UM/UIM limits match your liability limits, and while you can ask to lower that portion, it can never fall below the state’s minimum liability requirements of $50,000/$100,000/$25,000.4Virginia Code Commission. Virginia Code 38.2-2206 – Uninsured Motorist Insurance Coverage

UM/UIM pays you when the at-fault driver has no insurance or not enough to cover your losses. The statute also requires at least $20,000 in property damage coverage from uninsured motorists, with a possible $200 deductible when the at-fault driver can’t be identified, such as in a hit-and-run.4Virginia Code Commission. Virginia Code 38.2-2206 – Uninsured Motorist Insurance Coverage

Proof of Insurance

You must be able to show proof of coverage when a law enforcement officer or the DMV asks. Virginia accepts both a physical insurance card and an electronic copy on your phone.3Virginia Department of Motor Vehicles. Insurance Requirements The DMV also verifies insurance electronically with insurers, so if their system can’t confirm your policy, you may be asked to furnish proof directly.

Penalties for Driving Uninsured

If the DMV flags your vehicle as uninsured, the consequences stack up quickly:5Virginia Department of Motor Vehicles. Uninsured Vehicle Penalty

Falsely telling the DMV your vehicle is insured when it isn’t is a separate Class 3 misdemeanor.6Virginia Code Commission. Virginia Code 46.2-707 – Operation of Uninsured Vehicle, False Evidence of Insurance, Penalty The statute also requires an uninsured vehicle owner to surrender the license plates immediately, and failing to do so is another Class 3 misdemeanor.

Getting Reinstated After a Lapse

If your driving privileges are suspended for lack of insurance, restoring them involves several steps:5Virginia Department of Motor Vehicles. Uninsured Vehicle Penalty

  • Pay the $600 noncompliance fee to the DMV.
  • Have your insurer file an SR-22, a Financial Responsibility Insurance Certificate that proves you now carry valid coverage.
  • Maintain the SR-22 for three consecutive years. If your coverage lapses or is canceled during that period, your insurer files an SR-26 with the DMV and the suspension resumes.
  • Pay a reinstatement fee to the DMV, which runs from $145 to $220 depending on the nature of your suspension.8Virginia Department of Motor Vehicles. Reinstate Driver’s License

The SR-22 filing itself usually costs $15 to $50, but insurers classify SR-22 drivers as high-risk, and premiums often rise substantially for the full three years. Between the noncompliance fee, reinstatement fee, and higher premiums, a lapse can easily cost thousands more than keeping a policy in force.

Who Can Self-Insure

Virginia allows self-insurance, but only for owners or operators of more than 20 motor vehicles registered in the Commonwealth. The DMV Commissioner issues a certificate of self-insurance only after determining that the applicant has the financial ability to cover potential judgments, and self-insured entities must still provide UM/UIM protection at least equal to the state’s minimum liability limits.9Virginia Code Commission. Virginia Code 46.2-368 – Certificate of Self-Insurance For individual drivers with one or a few personal vehicles, this is not an available path; a standard liability policy is the only way to comply.

If You Drive for Uber, Lyft, or a Delivery App

A personal auto policy likely will not cover you while you are working for a rideshare or delivery service. Most personal policies exclude commercial use, and insurers have added specific exclusions for app-based driving. The platforms themselves carry commercial policies, but those typically have gaps, including the period between turning on the app and accepting a ride or delivery. If you drive for any of these services, ask your insurer about a rideshare endorsement or a commercial policy that covers what your personal policy excludes.