Virginia Code § 46.2-706 requires all Virginia registered motor vehicles to be insured by a liability policy issued through an insurance company licensed to do business in Virginia, and it must remain insured while registered, whether or not it is operated. Penalties are severe for violation of this requirement.
The financial responsibility requirement can be met in one of four ways:
- A policy or policies of motor vehicle liability insurance have been obtained and are in full force.
- A bond has been duly executed.
- A deposit has been made of money or securities.
- A self-insurance certificate has been filed.
The vehicle owner can insure the motor vehicle with minimum liability coverage through a policy issued by an insurance company licensed to do business in Virginia. The minimum liability coverage is set forth in Virginia Code § 46.2-472.
The vehicle owner can show proof that a Surety Bond has been duly executed by depositing cash or securities with DMV or by applying for and receiving a self-insurance certificate from DMV.
Note: If liability insurance coverage on a vehicle terminates or cancels during the registration period, the vehicle owner must either reinsure the vehicle, deactivate the license plates or surrender the license plates to DMV.
Penalties
Every person applying for registration of a motor vehicle and declaring it to be an insured vehicle faces stiff penalties if the motor vehicle is subsequently found to be uninsured.
DMV will suspend all driver's license and registration certificates and license plates issued to the owner of the motor vehicle. These items are suspended until the person:
- Pays a $600 non-compliance fee
- Furnishes and maintains proof of financial responsibility (form SR-22) for three years
- Pays a reinstatement fee, if applicable
Additional Information
DMV monitors insurance coverage through the Insurance Verification Program.
