Virginia has a financial responsibility law, Motor Vehicle Code 46.2-706, that requires all Virginia registered motor vehicle owners to have motor vehicle liability insurance or enough money to pay for any losses that may result from an automobile accident.

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 as follows.

• Bodily injury/death of one person $25,000
• Bodily injury/death of two or more persons $50,000
• Property damage $20,000

If liability insurance coverage on a vehicle terminates or cancels during the registration period, the vehicle owner must either re-insure the vehicle, pay the uninsured motor vehicle fee or surrender the license plates to DMV.

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 suspends 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 $500 statutory fee (collected by DMV and deposited into the Uninsured Motorist Fund), furnishes and maintains proof of financial responsibility (form SR-22) for three years and pays a reinstatement fee, if applicable.

The SR-22 is simply a certificate of financial responsibility showing you are carrying a certain type of liability coverage. It is not a form with questions that you fill out but one that your insurance agent would fill out and file for you with the state showing you had the required insurance coverages.

Definition of an SR-22 from the Car Insurance Learning Center: SR-22 is a form which must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. The SR22 is normally required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility. Each state has different variations of this form and requirements.

If you were at fault in the accident you would normally be held personally liable for the damages the car and driver sustained. If you did not reimburse the other party on your own the other party could seek a judgment in court against you. If the other person had insurance to take care of their damages their insurer could come after you (subrogate with you) for the monies they paid out for the accident you caused.

To get the required insurance for a VA SR-22, get a quote for a Virginia car insurance policy here with us.