Cheapest Car Insurance in Virginia

Car insurance in Virginia isn’t required unless you need an SR-22 or FR-44. If you choose to carry insurance anyway, the cheapest car insurance is the minimum state-required liability coverage. However, that coverage simply isn’t enough for many people. The amount of coverage you want, along with other demographic details like your ZIP code, influence which auto insurance company will be the cheapest for you.

The following are some of the best car insurance companies in Virginia:

• Allstate
• Liberty Mutual
• State Farm
• USAA

Here are some tips on how to lower the average cost of car insurance in Virginia.

1. Use discounts: Most auto insurance providers offer a slate of discounts. One of the most popular is a bundling discount, which applies if you pay for another type of insurance — home, pet, motorcycle, and others — with the same provider you use for auto insurance.
2. Lower limits: Reducing your coverage will lower your monthly payment (but could raise your out-of-pocket costs in the event of an accident).
3. Get rid of optional coverages: As we mentioned previously, the cheapest car insurance rates apply to minimum liability coverage.
4. Raise deductible: A typical deductible will be around $500, at which point your auto insurance provider will begin to pay for damages. If you raise your deductible to, say, $2,000, you will pay less per month, but will need to pay $2,000 out of pocket before your insurance begins to cover claims.

Virginia is one of two states that doesn’t require car insurance. You can instead pay a $500 uninsured motor vehicle fee to the Virginia Department of Motor Vehicles. The fee does not provide any insurance; rather, it allows you to drive an uninsured vehicle at your own risk. That means you will pay out of pocket for any property damages or bodily injuries you cause in an accident.

Virginia doesn’t require insurance if you pay a $500 uninsured motor vehicle fee; however, if you do obtain coverage, you need the minimum coverage the state requires.

In our experience, $90,000 for bodily injury liability and $20,000 for property damage liability does not extend far enough for most drivers. We recommend buying as much liability coverage as you can afford, but $500,000 is a good benchmark number to consider.

We also recommend the following supplemental coverages to protect yourself from financial woes following an accident:

• Uninsured motorist coverage: If someone without insurance hits you, they may not have enough funds to cover your property damages and bodily injuries. This is especially true in Virginia, which doesn’t require auto insurance. Thus, it’s vital to purchase uninsured motorist coverage equal to your liability limits in case of an accident.
• Medical payments coverage: Liability coverage only applies to the other party’s losses in accidents you cause. Medical payments coverage pays for your injuries in accidents you cause or in accidents where the other party does not have enough coverage for your losses.
• Collision coverage: Collision coverage pays for damages to your property regardless of fault.
• Comprehensive coverage: Comprehensive coverage pays for property damage from events other than collisions, such as vandalism, car theft, and natural disasters. The limits for collision and comprehensive coverage equal your car’s actual market value (AMV).
• Rental reimbursement: Insurance companies are required by law to notify you that rental reimbursement coverage is available for cars.³ You can buy coverage to reimburse yourself for the expense of renting a vehicle if you can’t drive your car for longer than 24 hours and the loss is due to a collision or other event defined in your policy. For stolen vehicles, transportation expense coverage begins 48 hours after the theft.

Self-Insurance

You can self-insure in Virginia if you own 21 or more vehicles registered in the state and have $95,000 worth of collateral. In order to apply, you must meet the following criteria:

• File a three-year loss history and a current list of vehicles.
• Submit your latest consolidated financial report.
• File a financial statement at the end of each fiscal year.
• Have a net working capital equal to the minimum limits of a motor vehicle liability policy.

Here is how to self-insure if you meet the above requirements:

1. Fill out this form: https://www.dmv.virginia.gov/webdoc/pdf/fr302.pdf.
2. Gather the necessary documents:
   • Current list of cars you own
   • Latest consolidated financial report, including profit and loss statement, certified by a reputable accounting firm
   • Financial statement from the end of the fiscal year
   • Crash involvement report (FR-521): https://www.dmv.virginia.gov/webdoc/pdf/fr521.pdf
3. Send the form and documents to this address:
   • Virginia Department of Motor Vehicles
   • P.O. Box 27412
   • Richmond, Virginia 23269

Virginia Auto Insurance Plan

The Virginia Automobile Insurance Plan (VAIP) provides insurance coverage for those who cannot obtain insurance through the voluntary market. You are eligible if you possess a valid Virginia driver’s license and a vehicle registered in the state. Consult your agent or broker for additional information on getting insured through VAIP.⁴

• Mailing address:
  • Mid-Atlantic Region
  • P.O. Box 6530
  • Providence, Rhode Island 02940
• Phone: 888-820-0170
• Email: vaip@aipso.com

• Mail:
  • Virginia Department of Motor Vehicles
  • P.O. Box 27412
  • Richmond, Virginia 23269
• Phone: 804-497-7100
• URL: https://www.dmv.virginia.gov/

While Virginia does not require car insurance, we recommend purchasing the highest coverage you can afford to avoid headaches in the event of an unforeseen accident. There are plenty of options for affordable coverage in the voluntary market; however, commercial and high-risk drivers can also opt for alternative auto insurance options.