Virginia drivers will soon be required to carry higher auto insurance minimums, a change that could impact premiums for many.
As of Jan. 1, 2025, the minimum liability requirements for Virginia drivers will increase. To comply with the 2025 law, drivers will likely have to shell out more money for coverage. On the upside, the changes could also provide better financial protection to victims in case of accidents.
Virginia’s new liability minimums
Each U.S. state has its own specific requirements for minimum liability limits and sometimes additional coverages like Personal Injury Protection (PIP) or Uninsured/Underinsured Motorist (UM/UIM) coverage.
Starting in 2025, Virginia will require these minimum coverages on auto insurance policies:
- $50,000 for bodily injury per person.
- $100,000 for bodily injury of all persons (meaning per accident).
- $25,000 for property damage per accident.
Those are all increases from the state’s current minimum coverage of $30,000/$60,000/$20,000 (often called 30/60/20 coverage). If your current 30/60/20 policy renews after that date, it will be updated to meet the new standards. Until then, your current policy remains valid.
Drivers should expect their monthly premium to rise upon renewal if their coverage amounts must increase to comply with the new law.
Prior to July 2024, Virginia drivers could opt out of the state’s car insurance requirements by paying a $500 uninsured motorist fee every year. That law is no longer in effect. Today, vehicle owners found to be uninsured will have their driving and vehicle registration privileges suspended, plus face penalties like paying a $600 non-compliance fee, filing an SR-22 (which will increase premiums) and paying a reinstatement fee, if applicable.
Will higher liability limits benefit me?
While this new law will increase insurance costs for some drivers, it offers some benefits.
Requiring all drivers to be insured — and with higher limits — may reduce accidents involving uninsured motorists. It will also improve the financial recovery process for accident victims. At-fault drivers will have more insurance coverage to compensate victims for their injuries and property damage, and victims of accidents will have a higher chance of receiving sufficient compensation to cover medical expenses, lost wages and other types of losses.
You, your car and your finances will still be at risk
State minimum liability coverage safeguards you financially by covering the costs associated with accidents you cause, including the victim’s medical expenses and lost wages. It also covers court costs if you’re sued. However, it doesn’t cover damage to you or your own vehicle. You’ll need additional, optional coverage like collision, comprehensive, and MedPay or PIP to cover these costs.
About 12.1% of Virginia drivers were uninsured in 2022, according to a Insurance Information Institute fact page, which references an Insurance Research Council study. Rising insurance costs could cause more drivers to forgo insurance coverage altogether.
Insured drivers can protect their finances in case of an accident with an uninsured driver by adding Uninsured Motorist (UM) / Underinsured Motorist (UIM) coverage to their policies.
What steps do I need to take today?
Understand your current coverage limits and evaluate whether they provide adequate protection. You may want to renew your policy early and increase your coverage limits. Many drivers may opt for even higher limits than the new minimum requirements for added peace of mind.
If you’re motivated to find potential savings, however, consider using the Jerry app to compare insurance quotes and find the best deal before the year ends. This will allow you to lock in a lower rate for a longer period.
If you’re happy with your current coverage, no action is needed. Existing policies with lower limits will automatically renew at the new minimum limits on or after Jan. 1, 2025 depending on your policy renewal date.
