In Virginia Car Insurance Is Not A Requirement

The requirements of Virginia car insurance are determined by state law, as are the requirements of all states. Differing from most of those other states, however, Virginia is one of only a handful of states that do not require its motorists to carry auto coverage. Many states require at least liability coverage, however in Virginia it is left to the discrepancy of the driver, who will instead be forced to pay a fee to the Department of Motor Vehicles (DMV) and held liable for all damages should they be found at fault in an accident. If they choose not to do either, the driver could risk suspension of their license.

For those drivers in Virginia that choose not to carry car insurance, they must pay an Uninsured Motor Vehicle (UMV) fee to the Virginia DMV. This is a required annual fee of $500, renewable at the same time as the vehicle registration.

Those motorists which choose to carry Virginia car insurance are held to minimum coverage standards known as 25/50/20. Coverage for bodily injury or death of one person must be greater than or equal to $25,000. For two or more persons, there is a $50,000 minimum. The minimum for property damage is $20,000. All three of these limits cover uninsured or underinsured motorists as well, with a $50,000 cap on bodily injury. Drivers within this state may also purchase additional coverage as provided by the insurance company and as they see fit.

Should a person choose not the pay the UMV or to allow their insurance to lapse, they must turn in their plates or risk suspension of their license upon being caught. Carriers of car insurance within the state of Virginia update the DMV electronically with changes of the information or coverage for the insured. It may be required that a driver show proof of Virginia car insurance during routine traffic stops or accidents, however.

Virginia requires that a driver pay a $500 statutory fee and file a Financial Responsibility Insurance Certificate (SR-22) for the next three years in order to reinstate a license that was previously suspended due to lapsed car insurance coverage. There may also be other applicable fees in conjunction with registration reinstatement. These are avoidable, however, by paying the UMV fee upfront or renewing the insurance policy.

An insurance company must be licensed in the state of Virginia in order to sell car insurance to resident drivers. A motorist must then pay a monthly premium in order to continue that coverage. In 2010, the average premiums for Virginia car insurance carriers were lower than that of the national average.

Virginia car insurance companies and policy owners are subject to the Tort system applicable to motorists within this state. Therefore, should an accident take place, one party must be held liable. This party is responsible for covering the damages, bodily or property, which occurred as a result of that accident.

Virginia drivers have choices in regarding their car insurance. Not only can they choose coverage options, they may also elect not to carry it at all by paying a UMV fee to the DMV. In Virginia, car insurance is not requirement, as it is in a majority of the states.

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