In order to register your vehicle in Virginia, you must establish financial responsibility to ensure you’re covered in the event your vehicle is involved in an accident.

Ways to Establish Financial Responsibility

You can establish financial responsibility when you purchase liability insurance from a carrier licensed to sell auto coverage in Virginia.

NOTE: Virginia does offer the options of posting surety bonds, cash, or securities and self-insuring, but not to owners of private passenger vehicles.

Virginia also allows vehicle owners to pay the Uninsured Motor Vehicle (UMV) fee if they want to register their vehicles without purchasing liability insurance. The UMV fee is $500, is valid for 12 months, and doesn’t offer any kind of financial protection. If you’re involved in an accident, you’re still personally liable.

Virginia Liability Insurance Requirements for Private Passenger Vehicles

Paying the UMV fee is a quick solution to meeting the requirements for vehicle registration, but it doesn’t offer any financial protection. This is why most owners opt to purchase liability insurance.

To meet the state’s liability insurance requirements, your policy must include:

• $25,000 of coverage for bodily injury or death of one person

• $50,000 for bodily injury or death of two or more people

• $20,000 for property damage

You might also want to take it a step further and research the additional types of coverage available with traditional auto insurance policies.

Electronic Reporting

The DMV uses an electronic reporting method to keep track of insurance policies in the state. If you purchase a new policy, or alter or cancel your existing policy, your insurance carrier will electronically notify the DMV.

Proof of Insurance and Financial Responsibility

The DMV keeps electronic records of the insurance policies for all the vehicles registered in the state; however, you need to keep a copy of the insurance information your carrier issues you in your vehicle at all times.

Penalties for Failure to Maintain Financial Responsibility

Once you register your vehicle, you must maintain continuous financial responsibility for it at all times―even if it becomes inoperable. If the DMV or a law enforcement officer catches you with no proof of insurance, you could face:

• Having your driver’s license, registration certificate, and license plates suspended.

• Paying $500 statutory fee and any other fees associated with license and registration reinstatement.

• Filing a financial responsibility insurance certificate (SR-22) with the DMV for three years.

You can call the DMV at (866) DMVLINE (368-5463) or (800) 435-5137 for additional information about financial responsibility requirements and the steps you need to take if your license and registration are suspended due to having no proof of insurance.