Drivers in Virginia have until July 1 to obtain insurance for their motor vehicles due to a law passed in 2022 that removes the option to avoid insurance premiums with an annual fee to the commonwealth’s Department of Motor Vehicles (DMV).
Governor Glenn Youngkin signed in 2022 legislation to end Virginia’s Uninsured Motor Vehicle (UMV) fee, which previously allowed citizens to annually pay $500 to the Virginia Department of Motor Vehicles (DMV) to register a vehicle without insurance.
The bill, SB 733 by former Senator Frank Ruff, was designed to take effect on July 1, 2024, amending Virginia law to sunset the UMV fee program.
Without the UMV fee, Virginians who fail to obtain sufficient insurance for their vehicle will be subject to tickets that require them to obtain proof of insurance within 30 days or face a $600 fine and potential loss of their license to drive.
Virginia is also slated to increase its minimum liability limits for vehicles in the commonwealth on January 1, 2025.
On that date, Virginians must obtain at least $50,000 in insurance coverage for injury accidents involving one person, $100,000 for injury accidents involving more than one person and $35,000 for accidents involving property damage.
Ruff told The Virginian-Pilot on Friday the legislation was created after he heard reports from the Virginia Loggers Association of companies who regularly paid up to to $250,000 to replace vehicles due accidents involving uninsured drivers.
He told the outlet that his constituents expressed the need to remove the UMV fee, and he “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.”
Estimates indicate that about 12 percent of Virginians currently drive uninsured vehicles. The figure is lower than the nationwide estimate of 14 percent despite the commonwealth previously allowing individuals to legally drive without insurance.
Data recently reported Virginians pay an average of roughly $1,900 per year for full coverage auto insurance, or $635 per year for minimum coverage, according to Bankrate. It was also revealed that Virginians who pay the most for auto insurance are 18-year-old men.
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Tom Pappert is the lead reporter for The Tennessee Star, and also reports for The Georgia Star News, The Virginia Star, and The Arizona Sun Times. Follow Tom on X/Twitter. Email tips to [email protected].
