Carter Craig, Attorneys at Law

How motor vehicle insurance helps in the event of accidents

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Motorists in Virginia know the importance of having insurance for their vehicles. In fact, to purchase license plates for the vehicles, a person needs to have the vehicle covered per the state's minimum insurance requirements or pay fees meant for uninsured motor vehicles. This is applicable not only for new vehicles, but for antique motor vehicles as well. Before buying insurance, it is usually a good idea to verify whether or not the insurance provider is authorized to do business in Virginia.

According to state laws, the minimum insurance coverage for bodily injury or death of one person is $25,000. For two persons or more, the coverage is $50,000, and for property damages, the minimum coverage is $20,000. People who pay the uninsured motor vehicle fee of $500 to the Department of Motor Vehicles should be aware that this fee does not provide any personal accidental insurance coverage. It only allows people to drive uninsured vehicles entirely at their own risk. The validity of such fee expires with the registration of the vehicle and needs to be renewed accordingly.

People who violate the insurance regulations may face severe penalties, including a suspension of driving and vehicle registration privileges. They will have to pay a statutory fee of $500, along with a reinstatement fee, and must also file a financial responsibility insurance certificate to get the privileges back. The DMV is provided with insurance details by the insurance providers, and the DMV also verifies whether the motor vehicles are insured.

If a vehicle is found to be uninsured, the DMV may send an insurance verification inquiry letter to the concerned owner and ask that person to provide details of policy information to the DMV for verification.

Source: DMV.Virginia.gov, "Insurance Requirements," Accessed on July 24, 2015

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