Virginia Auto Insurance Requirements

 Virginia has a financial responsibility law. The purpose of this law is to keep drivers off the highway if they cannot bear the cost of injuries or damage that they cause. These financial responsibility
requirements can be met in one of several ways.

Financial Responsibility Options
(1) When you register your vehicle, you must certify that it is insured by a company licensed to do business in Virginia. Your policy must provide the following minimum limits of liability  $25,000/$50,000/$20,000.:
• $25,000 for injury or death of one person;
• $50,000 for injury or death of two or more people; and
• $20,000 for property damage.

Special Package Auto Policy - Single Limit of Liability -Some insurance companies sell a policy that covers bodilyinjury liability per person, bodily injury liability per accident andproperty damage liability, but does not have separate limits. Themaximum that a company will pay per person or per accident is contained in a single limit. This single limit must be at least $70,000 to satisfy the financial responsibility laws although limits of up to $1,000,000 can be purchased. This limit of liability applies to all bodily injury and property damage liability losses that occur as a result of any one accident for which the insured is legally liable. Uninsured motorist coverage is also contained
in every Special Package Auto Policy.Otherwise, the law requires you to pay the uninsured motorist fee.

(2) Uninsured Motorist Fee: This $500 Uninsured Motor Vehicle (UMV) fee, which is paid to the Department of Motor Vehicles (DMV), does not provide any insurance; it only allows you to drive an uninsured vehicle at your own risk. It expires with your registration and must be paid at renewal.

(3) Self-insurance or Surety Bonds: These are special options for owners of business vehicles.

Consequences: Vehicle owners who are uninsured and have not paid the UMV fee will have their operator’s license suspended. To be reinstated, they must pay a $500 statutory fee, a $30
reinstatement fee, and file an SR-22 with DMV for three years, which certifies that they have insurance.

OPTIONS 2 OR 3 SATISFY THE REQUIREMENTS OF LAW.
HOWEVER, THEY DO NOT CONSTITUTE INSURANCE AND YOUR HOME, WAGES, AND OTHER ASSETS MAY BE TAKEN TO PAY ANY VALID CLAIMS AGAINST YOU.
If you decide to satisfy the requirements of the Virginia financial responsibility law by buying auto insurance, your policy must contain three major parts - (A) liability insurance for bodily injury, (B) liability insurance for property damage, and (C) uninsured/underinsured motorist coverage.