HEY VIRGINIANS…VIRGINIA IS INCREASING THEIR STATE REQUIREMENT FOR CAR INSURANCE
Long story short: Virginia’s car insurance laws are changing. Now is the time to make sure you’re up to date because they will also be verifying coverage. Read on for the nitty-gritty.
Virginia has been revamping their vehicle insurance laws and it is up to every driver to understand, be compliant and stay adequately protected in this evolving landscape. As of July 1, 2024, all cars in Virginia must be insured with a policy including minimum coverage of 30/60/20 liability limits (that’s bodily injury liability of $30,000 per person and $60,000 per accident, plus $20,000 of property damage liability). Yet the changes don’t stop there. Effective January 1, 2025, the state is increasing the minimum required limits.
To be legal driving a Virginia registered vehicle, the new limits of Liability will be:
Ø Bodily Injury $50,000 per person and $100,000 per occurrence.
Ø Property Damage $25,000.
Ø Uninsured Motorist coverage limits will follow the new minimum Liability limits.
WHAT THIS MEANS AND WHY THESE CHANGES MATTER
Higher auto insurance limits mean greater protection in the event of a covered accident. If you cause damage or injury, the increased coverage will help cover higher amounts of the repairs and expenses. This adjustment is designed to elevate the protection and safety standards for all Virginia drivers.
IS THIS GOOD NEWS?
While these changes are largely beneficial for “the greater good,” they come with both advantages and challenges.
Advantages:
Ø Enhanced Protection — Drivers already carrying higher limits can feel more confident that others will also have better coverage, reinforcing peace of mind and potential financial security for all involved.
Ø Greater Safety for Victims — Higher required limits aid individuals harmed in accidents with potentially more coverage to help them with the ensuing medical bills and property damages.
Challenges:
Ø Rising Premiums — Because companies will possibly have higher payouts, this could also cause an increase in premiums.
Ø Increasing Costs — For those who choose to fulfill only the current minimum, their insurance costs will increase as companies adjust policies to comply with new requirements. Out-of-pocket cost will increase as the limits increase.
Ø Impact on Uninsured Drivers — Those without coverage will face steeper premiums when trying to secure a new policy due to the escalated limits.
HOW WILL THIS IMPACT YOU?
Ø If You Have Higher Limits — You won’t need to adjust your policy because nothing specific to your policy will change (you already meet or exceed state requirements).
Ø If You Carry Minimum Coverage — Prepare for increased costs as your insurance provider will enhance your coverage to meet new state requirements (increased cost because increased coverage).
Ø If You are currently Uninsured — Expect to pay more when securing a new policy under the new regulations.
Bottom line: Overall cost of motor vehicle insurance will increase in Virginia because the amount of coverage required will be increasing.
WHAT SHOULD YOU DO NOW?
1. Strongly consider getting ahead of the curve. If you do not have insurance now, you may still be able to start at the lower requirements and ease into it as regulations change. Simply put, it’s probably cheaper overall to start now than to wait.
2. Also, now is an opportune moment to review your insurance policy. Talk to your agent or a reputable agency like Solo Insurance® for a free, no-obligation policy review. Staying informed will help you navigate the upcoming changes effectively.
WILL VIRGINIA DMV KNOW WHAT DRIVERS HAVE?
Yes. The flip side of the deal is car insurance companies must verify liability coverage on Virginia registered vehicles with the DMV [Department of Motor Vehicles]. They must provide proof when a policy is initiated or canceled to maintain accountability in the insurance process.
Per dmv.virginia.gov: “In partnership with the insurance industry, the Virginia Department of Motor Vehicles (DMV) administers a program to electronically verify the automobile liability insurance on Virginia registered vehicles. If no insurance is found for a particular motor vehicle, the owner is required to furnish policy information to DMV for verification.”
This is to help you be aware. Consider getting your auto insurance situation in order by understanding what is taking place. If you do not have car insurance, it is time to get it. If you have your vehicles insured, review your coverage with your agent or a trusted agency such as Solo Insurance® (we offer free, no obligation reviews and without policies without additional producer fees). Know there are changes so make sure you review any paperwork your insurance company sends you to stay appraised. With over 30 years of car insurance expertise, Solo Insurance® is dedicated to assisting you in finding the car insurance you want, always at our best rate. Whether you have a stellar driving record or need help with rising premiums, our team of experienced, licensed agents is ready to support you.
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