Yes, car insurance is legally required to drive in Virginia. The state mandates that all registered vehicle owners maintain minimum liability coverage. However, Virginia offers a unique alternative: you can pay a $500 uninsured motor vehicle fee to the Department of Motor Vehicles (DMV) if you can demonstrate financial responsibility, but this leaves you personally liable for any damages in an accident. Liability insurance covers costs for injuries or property damage you cause to others. It does not cover your own vehicle or medical expenses.
The minimum liability coverage limits set by the Virginia Code are:
| Coverage Type | Minimum Limit | Description |
|---|
| Bodily Injury Liability (per person) | $25,000 | Covers medical expenses for one person injured in an accident you cause. |
| Bodily Injury Liability (per accident) | $50,000 | Total coverage for all injuries in one accident you cause. |
| Property Damage Liability | $20,000 | Covers damage to another person's property, such as their car or a fence. |
| Uninsured Motorist Bodily Injury (per person) | $25,000 | Protects you if hit by an uninsured driver; required unless rejected in writing. |
| Uninsured Motorist Bodily Injury (per accident) | $50,000 | Total coverage for uninsured motorist bodily injuries per accident. |
| Uninsured Motorist Property Damage | $20,000 | Covers your property damage from an uninsured driver; often has a $200 deductible. |
| Average Annual Premium in Virginia | ~$1,000 | Based on 2023 industry data from the Insurance Information Institute. |
| National Average Annual Premium | ~$1,700 | For comparison, highlighting Virginia's relatively lower costs. |
| Percentage of Uninsured Drivers in Virginia | ~10% | According to the Insurance Research Council, lower than the national average of 12.6%. |
| Fine for Driving Without Insurance | Up to $500 | Plus potential court costs and license suspension for first offenses. |
| SR-22 Requirement | Often needed | A certificate filed by your insurer after serious violations like DUIs. |
| Minimum Coverage Cost (Basic Plan) | ~$400/year | Estimated for drivers with clean records in urban areas like Richmond. |
| Recommended Comprehensive Coverage | Adds ~$300/year | Covers theft, vandalism, or natural disasters; not legally required but advised. |
| Collision Coverage Average Add-on | ~$350/year | Pays for your vehicle's repairs after an accident, regardless of fault. |
| DMV Uninsured Fee Duration | Valid for 12 months | Must be repaid annually if opting out of insurance. |
| Financial Responsibility Proof | Required at registration | You must show insurance documents or fee payment to the DMV. |
Driving without insurance or the fee can result in fines, license suspension, and vehicle impoundment. Insurance experts recommend exceeding minimums for better protection, especially with Virginia's high traffic density. Consider factors like your driving record, vehicle value, and personal assets when choosing coverage. The state's laws are designed to ensure all drivers can cover potential losses, reducing the burden on accident victims.
