Close Menu
Insurance Journal – Property Casualty Insurance News

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Unlock Business Growth with Actionable Market Intelligence

    July 11, 2025

    No title available due to content being unreadable

    July 11, 2025

    Insurer Secures $400 Million Capacity for Catastrophe & Flood Insurance

    July 11, 2025
    Facebook X (Twitter) Instagram
    Insurance Journal – Property Casualty Insurance NewsInsurance Journal – Property Casualty Insurance News
    Facebook X (Twitter) Instagram
    SUBSCRIBE
    • Home
    • Business Insurance
    • Identity Protection
    • Life Insurance
    • Pets Insurance
    • Property Insurance
    • Vevehicle Insurance
    Insurance Journal – Property Casualty Insurance News
    Home » Virginia Mandates Auto Insurance, Increases Coverage Requirements
    New

    Virginia Mandates Auto Insurance, Increases Coverage Requirements

    insurancejournalnewsBy insurancejournalnewsFebruary 27, 2025No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Reddit WhatsApp Email
    Share
    Facebook Twitter LinkedIn Pinterest WhatsApp Email

    Effective July 1, 2024, Virginians will be required to carry automobile insurance, as mandated by a law enacted in 2023. Senate Bill 951 eliminates the option for motorists to register uninsured vehicles and pay a $500 annual fee. Any existing registrations for uninsured vehicles will expire before this new requirement takes effect.

    The bill passed the House with a vote of 82-16 and the Senate by 36-3. Revenue from the previous uninsured vehicle registration fees was directed into Virginia’s uninsured motorist fund. As noted in SB 951’s impact statement, this fund has helped to reduce the cost of uninsured motorist insurance coverage. The State Corporation Commission utilizes this fund to distribute money to insurance companies that provide liability insurance for vehicles registered in Virginia. Additionally, revenue collected from penalties and fees associated with non-compliance with Virginia’s financial responsibility laws is also deposited into the same fund.

    In fiscal year 2022, $5.3 million was transferred to the fund by the Department of Motor Vehicles, with $650,000 originating from payments of the uninsured motor vehicle fee. “I agreed with them that it made no sense for someone that might have a record of bad driving to simply pay $500 when many good drivers were paying more,” said Senator Frank M. Ruff Jr. (R-District 15), the bill’s sponsor, in comments to The Virginian-Pilot.

    According to the Insurance Information Institute (Triple-I), approximately 12.1% of Virginia drivers were uninsured in 2022. This figure is lower than the national average of 14%.

    Starting January 1, 2025, Virginia will increase the required liability insurance coverage amounts. For injuries or the death of one person, the minimum coverage will increase from $30,000 to $50,000; for injuries or death of two or more people, it will rise from $60,000 to $100,000; and property damage coverage will increase from $20,000 to $25,000. Mark Friedlander, a spokesperson for Triple-I, told The Virginian-Pilot that these increases will be among the highest in the country and that drivers with the bare minimum required coverage may see their rates rise.

    According to a recent report from the U.S. Bureau of Labor Statistics (BLS), motor vehicle insurance is one factor contributing to the consumer price index, which rose to 3.5% earlier in the month. Multiple media outlets reported that the 12-month inflation rate increased to 3.2% in February, exceeding initial expectations. This likely means the Federal Reserve will not cut interest rates in June as previously anticipated. On April 10, Yahoo Finance reported that auto insurance experienced a 22.2% annual increase, the largest since December 1976 when prices rose by 22.4%.

    Image illustrating car insurance process
    Image illustrating car insurance process
    insurance uninsured motorist vehicle registration Virginia
    insurancejournalnews
    • Website

    Related Posts

    Unlock Business Growth with Actionable Market Intelligence

    July 11, 2025

    No title available due to content being unreadable

    July 11, 2025

    Insurer Secures $400 Million Capacity for Catastrophe & Flood Insurance

    July 11, 2025
    Leave A Reply Cancel Reply

    Don't Miss

    Unlock Business Growth with Actionable Market Intelligence

    By insurancejournalnewsJuly 11, 20250

    Gain a competitive edge and make informed decisions with our market insights

    No title available due to content being unreadable

    July 11, 2025

    Insurer Secures $400 Million Capacity for Catastrophe & Flood Insurance

    July 11, 2025

    Lawyer Urges MBK Partners to Repay Debts to Home Plus Bond Investors

    July 11, 2025
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Our Picks

    Unlock Business Growth with Actionable Market Intelligence

    July 11, 2025

    No title available due to content being unreadable

    July 11, 2025

    Insurer Secures $400 Million Capacity for Catastrophe & Flood Insurance

    July 11, 2025

    Lawyer Urges MBK Partners to Repay Debts to Home Plus Bond Investors

    July 11, 2025

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    Demo
    New

    Montana Eyes Workers’ Comp for First Responders with PTSD

    February 24, 2025

    Best Home and Auto Insurance Deals for Veterans

    February 24, 2025

    Pennsylvania Insurance Department: Protecting Consumers and Regulating the Insurance Market

    February 24, 2025
    Categories
    • Business Insurance (1,834)
    • Identity Protection (539)
    • Life Insurance (1,740)
    • New (5,656)
    • Pets Insurance (520)
    • Property Insurance (996)
    • Vevehicle Insurance (471)

    Unlock Business Growth with Actionable Market Intelligence

    By insurancejournalnewsJuly 11, 20250
    Facebook X (Twitter) Instagram Pinterest
    © 2025 Insurance Journal News. Designed by Insurance Journal New.

    Type above and press Enter to search. Press Esc to cancel.