Virginia Auto Insurance [Rates + Cheap Coverage Guide]

As one of the original 13 states, Virginia is a state bursting with fascinating historical landmarks. People can visit George Washington’s famous plantation, stroll through the iconic Jamestown museum, or see the start of the Appalachian Trail.

For those who live in Virginia, though, there is the necessary chore of purchasing car insurance, which is a lot less interesting. Scrolling through dozens of websites and reviews sometimes feels like a waste of time.

But it doesn’t have to be. Imagine having all the necessary information compiled for you, from insurance requirements to company reviews, from road rules to crash stats.

That’s where we come in. Our comprehensive guide covers everything you need to know about insurance and driving in the state of Virginia. So let’s jump right into it.

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Virginia Car Insurance Coverage and Rates

With multiple coverages and rate options available, it can be tough to know what you should be purchasing. While it can be tempting to skip out on coverages to save money, this could cost you in the long run.

That’s why we are going to cover what you NEED and what you SHOULD have. Virginia requires drivers to have certain coverages and having other coverage options is just common sense.

So keep reading to learn about Virginia’s coverages and rates, so that you can purchase the best coverage plan for you.

– Virginia Minimum Coverage

Virginia requires more complete coverage than other states, though drivers may opt out of insurance if they wish. Drivers in Virginia must have bodily injury and property damage liability coverage, as well as uninsured and underinsured motorist coverage. These coverages must be in Virginia’s required amounts.

If you choose to not have these coverages, you will have to pay the $500 Uninsured Motor Vehicle (UMV) fee every year. You will still be held liable in accidents, and you drive at your own risk.

The smartest option is to carry Virginia’s minimum insurance amounts. The Insurance Information Institute (iii) lists the minimum required amounts as the following.

• 25,000 to cover injury costs of one person in an accident for which you are at fault
• 50,000 to cover injury costs of more than one person in an accident for which you are at fault
• 20,000 to cover property damages in an accident for which you are at fault

Driver’s must also have uninsured and underinsured coverage, though minimum amounts are not specified. Not having Virginia’s required coverages without paying the UMV fee is illegal and will result in the suspension of your license and registration.

– Forms of Financial Responsibility

So how do you prove that you are following Virginia’s auto insurance law? Virginia requires that all drivers have a form of financial responsibility, which is simply proof of car insurance.

Below are some acceptable forms of financial responsibility in Virginia.

• Valid Insurance ID Card
• Proof that you paid the UMV fee

Even though drivers may drive uninsured in Virginia, uninsured drivers still need to prove they are following Virginia’s UMV law. Anytime drivers are pulled over in a traffic stop, register a car, or are in an accident, they must provide proof of financial responsibility.

Virginia also has an electronic verification system to check vehicles’ insurance status.

– Premiums as a Percentage of Income

In order to see how much coverage takes out of an average income, we are going to take a look at Virginia’s per capita disposable income and premiums.

Per captita disposible income is simply how much a person has to spend or save after taxes.

The table below shows how much the average Virginian pays each year for car insurance. Luckily, Virginia’s percentages are below the countrywide average, which is about 2.4 percent.

Virginia’s percentages have remained steady throughout the years. Even though the cost of premiums went up, the disposable income also increased. The good news, too, is that Virginia’s percentages are lower than most.

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The highest percentage in the U.S. is almost four percent, whereas the lowest percentage is just above one percent. Since Virginia is firmly in between the lowest and highest percentages, it has a fairly decent percentage (though lower is always better).

– Core Coverage

Core coverage has some of the most valuable coverages in case of an accident. While Virginia requires liability, other great core coverages are a collision or comprehensive coverage.

• Collision coverage will help pay for repairs or replacement if your car is damaged because of a collision with another vehicle or object.
• Comprehensive coverage will help pay for repairs or replacement if your car is damaged by something OTHER than a collision. For example, natural disasters (fire, hail, etc.), theft, vandalism, or hitting an animal.

To see how much these coverages cost, we’ve compiled the average annual rates below.

Virginia’s averages are actually below the countrywide averages. The combined countrywide average is $1,009, which means Virginia residents pay $167 less than most people in the U.S.! 

– Additional Liability

Additional liability coverages are important to have. Two of the biggest additional liability coverages are medical payments (Medpay) and uninsured/underinsured coverages.

With 9.9 percent of drivers uninsured in Virginia (ranking the state as 34th in the U.S. for uninsured drivers), uninsured and underinsured coverage is necessary to protect drivers.

If you are in an accident with uninsured/underinsured drivers and they are at fault, you risk having to pay the accident bills yourself. Most uninsured/underinsured drivers will go bankrupt before being able to pay off the accident costs.

You may remember that Virginia requires uninsured and underinsured coverage unless you opt of insurance coverage, but Medpay is optional. Medpay is still a great coverage to have, as Medpay covers both your medical costs and your passengers’ medical costs from an accident.

Up next, we have the National Association of Insurance Commissioner’s (NAIC) data on these coverages’ loss ratios.

Why should you care about loss ratios? Loss ratios show how well a company is doing financially.

Companies who are paying out too many claims have loss ratios over 100 percent and risk going bankrupt. On the other hand, companies who aren’t paying out enough claims have low loss ratios and risk losing customers.

With this in mind, let’s take a look at the additional coverages’ loss ratios.

Unfortunately, Medpay’s loss ratios have dipped over the years and are below the countrywide average of 75 percent. As for the uninsured and underinsured loss ratios, they have risen over the years to match the countrywide average (which is about 74 percent).

The good news is that none of the loss ratios are terribly low or too high, meaning these coverages are functioning well.

– Add-Ons, Endorsements, and Riders

Add-ons may seem excessive to you if you are already purchasing Virginia’s required amount. While these extra coverages are optional, they are affordable and allow you to create a tailored protection plan, making them well worth your money.

Below is a list of the most popular add-ons.

• Guaranteed Auto Protection (GAP)
• Personal Umbrella Policy (PUP)
• Rental Reimbursement
• Emergency Roadside Assistance
• Mechanical Breakdown Insurance
• Non-Owner Car Insurance
• Modified Car Insurance Coverage
• Classic Car Insurance
• Low-Mileage Discount

Any of the above coverages would make great add-ons to policies.

– Demographic Rates — Male vs. Female vs. Age

The most common demographics that impact rates are gender and age, though marital status and other demographics can also influence rates. We partnered with Quadrant to bring you the following information on rate changes influenced by everything from demographics to cities.

Teenage males have the highest rates at Virginia’s insurers, paying thousands more than other age groups! Teenage females also have higher rates, though generally, they pay about a thousand less than teenage males in Virginia.

These higher rates make sense, as teenage drivers are higher-risk due to lack of experience. Because the rates are so high, though, most parents will add their teenagers onto the parents’ policy where the raised rates are much more reasonable.

Curious what other demographics have increased rates? Check out the complete list of demographics below to see what your rates might be.

Married 60-year-olds and married 35-year-olds consistently have the lowest rates at most providers.

– All Zip Code — Cheapest Rates by ZIP CODE

Another factor that impacts rates is where you live. Insurers may charge more in areas with a higher crime rate or areas with more traffic congestion that carry higher risks of a crash.

We’ve also included Quadrant’s data on the cheapest providers in your zip code in the table below.