Apr 25, 2024 - News

Virginia drivers required to have car insurance starting July 1

Illustration of a car from above overlaid with a one dollar bill

Illustration: Sarah Grillo/Axios

Virginians will no longer be able to legally drive without car insurance starting July 1.

State of play: Virginia was one of only two states that allowed people to drive while uninsured, but only if you paid an annual $500 fee — which the Department of Motor Vehicles told Axios nearly 6,100 residents do.

  • Now, drivers will have to show proof of insurance when registering a car — or renewing registration — as a result of a law passed last year.

If you don't within 30 days of the DMV asking for it, the agency can:

  • Charge you $600 for a noncompliance fee.
  • Suspend your license, registration and license plates until you pay it and show proof of insurance.
  • Require a $145 reinstatement fee to get your license back.

The big picture: Insurance prices this past month saw the largest annual jump in 40 years.

  • And it's happening at a time when high vehicle prices, climate catastrophes and increasingly risky driving patterns are also driving up insurance rates.

Between the lines: The national average cost for a full-coverage policy is $2,019 per year, according to Insurify.

  • MarketWatch found Virginia's rates are 11% cheaper at $1,781 or $148 per month.

What's next: The minimum liability insurance coverage requirements will go up next January from:

  • $30,000 to $50,000 for the injury or death of one person.
  • $60,000 to $100,000 for two or more people.
  • $20,000 to $25,000 for property damage.
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