Virginia – Virginia is set to undergo significant changes in its car insurance regulations, marking a pivotal shift from its previous policies. These changes are outlined in Senate Bill 951, which was passed during the 2023 legislative session of the Virginia General Assembly. This bill is crucial as it repeals the long-standing option for residents to register vehicles without insurance, an option previously shared only with New Hampshire.
Starting from July 1, 2024, the Commonwealth of Virginia will abolish its uninsured motorist fee program. This program allowed drivers to legally operate their vehicles without insurance by paying a fee during vehicle registration, which contributed to the Uninsured Motorists Fund (UMF). This fund helped mitigate the costs associated with uninsured drivers on Virginia’s roads. As per the new law, “Effective July 1, Virginia will be a mandatory auto insurance state,” stated Robert N. Bradshaw, Jr., the president and CEO of Independent Insurance Agents of Virginia, Inc.
This change is aimed at enhancing road safety and ensuring that all motorists bear financial responsibility in the event of accidents. Virginia’s shift towards mandatory insurance aligns with the majority of the United States, where carrying auto insurance is a standard legal requirement.
A second, equally significant change will take effect on January 1, 2025, when Virginia raises its minimum liability insurance limits. This increase means that all drivers currently carrying the minimum insurance will need to adjust their policies to meet the new standards. This adjustment is anticipated to have minimal impact on the overall cost of car insurance within the state, but it is a crucial step towards providing better coverage and protection for all road users.
For drivers in Virginia, these changes necessitate several immediate actions. If your vehicle is registered as uninsured, you must secure a car insurance policy that meets the new requirements and update your registration by July 1, 2024, to avoid penalties. Bradshaw advises, “Our recommendation to anyone is that they shop their insurance with an independent agent from the basis of how much coverage they need and how much risk can they absorb.” Comparing rates online to find the most suitable car insurance company for your needs is also recommended.
Once insured, Virginians must renew their vehicle registration before the deadline to ensure compliance with the new laws. The Virginia Department of Motor Vehicles (DMV) announced that the DMV will verify insurance information for registered vehicles with each insurer. Non-compliance will result in penalties that contribute to the UMF, enhancing the pool that offsets the cost of uninsured drivers.
From July 1, 2024, driving without insurance in Virginia will not only be illegal but also classified as a Class 3 misdemeanor. The penalties for this offense are severe, including a $600 noncompliance fee, a $145 fee for the reinstatement of licenses and registrations, and a mandatory SR-22 filing requirement for three years. More severe consequences include immediate suspension of licenses and registrations if caught driving uninsured, with reinstatement contingent upon settling all penalties. Additionally, using false proof of insurance will lead to a mandatory suspension of at least 180 days.
As the deadline approaches, more than six thousand Virginians who currently pay the uninsured motorist fee need to adjust their approach and secure appropriate insurance coverage. This legislative change is a critical step towards ensuring that all drivers contribute fairly to the safety and financial stability of Virginia’s roadways.
