At Allen & Allen, we often help clients recover financial compensation after they’ve been hurt in car accidents. One of the first questions we get is whether the at-fault driver has insurance—and surprisingly, in Virginia, not everyone does.
If you’ve been injured in a crash, or you’re wondering what protections you really have on the road, you may wonder, “Is car insurance required in Virginia?”
The answer is yes and no. Virginia is one of only a few states that allows drivers to drive without having auto insurance—with some stipulations.
Read on to learn more about Virginia car insurance laws, the risks of driving without coverage, and how to protect yourself financially.
If you suffered injuries or lost a loved one in a Virginia car crash someone else caused, contact a car accident attorney near you immediately for a free consultation.
Do you have to have car insurance in Virginia?
You might assume every driver in Virginia needs car insurance, but the law says otherwise.
Is auto insurance required in Virginia? Technically, no. Virginia is one of the few states that doesn’t mandate car insurance—as long as you pay an annual $500 uninsured motorist fee when registering your vehicle.
That doesn’t mean you’re off the hook financially if you cause a crash. It only means you won’t be penalized criminally for not having insurance. You’re still personally responsible for any injuries or damages you cause.
Paying the uninsured motorist fee
Under Va. Code § 46.2-706, drivers who choose not to buy auto insurance can pay a $500 uninsured motor vehicle fee to the DMV. This fee allows you to drive legally, but:
- It is not insurance.
- It offers zero protection if you cause or are involved in an accident.
- You will be personally liable for any damages.
In other words, you’re driving without a safety net.
What are the minimum auto insurance requirements in Virginia?
If you decide to carry car insurance in Virginia, the law sets minimum coverage amounts that your policy must include. These are designed to offer a basic level of protection for injuries or damages you may cause to others in a crash. But keep in mind—these limits are low compared to actual accident costs, and they may not fully protect you in a serious collision.
Virginia liability insurance requirements
Under Virginia law, the minimum auto insurance requirements in Virginia include:
- $25,000 for bodily injury or death per person
- $50,000 for total bodily injury or death per accident
- $20,000 for property damage per accident
This type of coverage is called liability insurance, and it pays for injuries and property damage that you cause to others—not for your own injuries or vehicle damage.
How these limits work
Let’s say you cause a crash that injures two people and totals another driver’s vehicle. Here’s what the minimum coverage pays:
- Up to $25,000 for each injured person
- No more than $50,000 total for all bodily injuries in that one accident
- Up to $20,000 for the vehicle or property damage
If the actual medical bills or repair costs exceed these amounts, you’re responsible for the difference. That could mean lawsuits, wage garnishment, or loss of your assets if a judgment is entered against you.
Why the Minimum Might Not Be Enough
While these minimum limits satisfy legal requirements, they often fall short in real-world situations—especially when:
- Multiple people are injured
- Expensive vehicles are involved
- Property damage exceeds $20,000
- Medical treatment includes ER visits, surgeries, or rehab
With hospital bills alone often topping tens of thousands of dollars, carrying only the minimum coverage puts your finances at serious risk.
Recommendation: Go beyond the minimum
To truly protect yourself and your family, most insurance professionals recommend higher liability limits, along with additional coverages like:
- Collision and comprehensive coverage (for your own vehicle)
- Uninsured and underinsured motorist coverage (UM/UIM)
- Medical payments (MedPay) to help cover out-of-pocket costs
The bottom line? While Virginia allows minimal coverage, it’s wise to carry more than the bare minimum—especially when the consequences of an underinsured claim can be devastating.
Property damage: The overlooked risk
Many drivers focus on medical bills after a crash, but property damage claims can be just as costly. Under Virginia law, the minimum required property damage coverage is $20,000.
That might cover a dented fender—but not a total loss, commercial vehicle, or infrastructure damage. We’ve handled cases where clients were hit and run off the road into a highway sign support post. Replacing that kind of public infrastructure can cost well over $20,000.
If your policy limit stops there, you’ll be expected to pay the difference.
What if a person driving without insurance injures me?
What happens if you are involved in a car crash with a person that has no insurance and the collision is their fault? If you have auto insurance on the vehicle you are driving, then in Virginia, you may also have a coverage called “uninsured motorist coverage.” Virginia law says that if you purchase auto insurance, you automatically get uninsured motorist coverage unless you specifically decline the coverage. Uninsured motorist coverage (or “UM coverage”) provides coverage to you if the person who caused the crash and your damages are not covered by an active auto insurance policy. Under Virginia law, the uninsured motorist coverage has the same limits as the bodily injury liability coverage. If you only carry the Virginia required minimum coverage of $25,000 and the person that caused your damages is uninsured with no assets the most you will probably ever recover is $25,000, even if you suffered a catastrophic injury.
What if a person who doesn’t have enough insurance to cover my loss injures me?
Your own auto insurance policy can also protect you if an at-fault driver injures you who does not have sufficient insurance coverage. Under Virginia law, there is insurance coverage that will protect you in such a situation. That insurance coverage is called “underinsured motorist coverage.” Underinsured motorist coverage (or “UIM coverage”) is also included in your policy if you have auto insurance unless you specifically decline it. UIM coverage is intended to protect you from those that may not have purchased sufficient coverage to pay your claim in full. It’s a benefit to you for having purchased higher insurance limits than the person who caused the collision.
Thus, for purposes of paying your claim, it’s as if the other person has the same limit that you do. As with UM coverage, the limits of your UIM coverage are the same as the liability limits of your auto insurance policy. For example, suppose you suffer injuries in a motor vehicle crash that is caused by someone else, and your injuries require you to be kept in the hospital for twenty days and, as a result, you have a $100,000 hospital bill. If the person that caused the crash only has $25,000 in coverage, then that is the limit that their insurance company will pay and you may well be stuck with the rest of the bill. However, if you have an auto insurance limit of $100,000, then the other person’s insurance company will pay the first $25,000 (his limit) and then your company will pay $75,000 to make up the difference between the underinsured person’s policy and your policy. You recover $100,000 and it’s as if the other person had a $100,000 limit because that’s the amount you can recover.
Virginia’s low limits for insurance make it extremely important to select sufficient auto insurance to protect your financial well-being. Without sufficient UM/UIM coverage, you could find yourself handling the medical bills and other costs all on your own, without the benefit of insurance.
The same principles apply regarding property damage. Talk to your agent or insurance carrier to make sure you are protected. Don’t be caught “exposed” or without sufficient auto insurance coverage to protect you and your family.
Editor’s Note: Many vehicles are worth more than the minimum limit of $20,000 for property damage coverage. If you damage another person’s vehicle and the damages exceed $20,000, then your personal assets are “exposed” for the difference. If you run off the road and damage another person’s property, the damage may exceed the limit of $20,000. I’ve had a number of cases where someone caused an accident and forced another driver off the road into the support for a large highway sign. The replacement of the support and sign can easily exceed $20,000.
Injured in an accident? Allen & Allen can help
If you’ve been injured in a crash—whether the other driver had insurance or not—you don’t have to deal with the stress and confusion alone.
Allen & Allen has helped thousands of injured Virginians recover the compensation they deserve. We understand the laws, we know the insurance loopholes, and we fight for your rights. Let us handle the legal details so you can focus on healing.
Contact us today for a free consultation.
For a comprehensive guide on how to purchase insurance, and what to do if you’re involved in an accident, download our free All About Insurance eBook, featuring hand-selected expert articles written by Allen & Allen attorneys.
