The Department of Motor Vehicles (DMV) is responsible for ensuring that all owners of registered motor vehicles comply with Virginia’s insurance laws, referred to in the Code of Virginia as financial responsibility laws. The Insurance Verification Program (IVP or the Program) identifies vehicle owners who are not in compliance. Pursuant to the provisions of the Code, vehicle owners must have liability coverage for their motor vehicle. Before July 1, 2024, vehicle owners had the option to voluntarily pay a $500 uninsured motorist fee upon registration. Payment of this fee did not provide or substitute for insurance coverage.

Chapters 149 and 193 of the 2019 Acts of Assembly (the Legislation)(*1) introduced several improvements to the IVP and directed DMV to report to the General Assembly in December 2024 regarding the Legislation’s effectiveness in improving the Program. The Legislation also directed DMV to provide recommendations to address any lack of compliance with Virginia’s motor vehicle liability insurance requirements.

Most of the Legislation became effective on July 1, 2019. Portions related to insurance companies furnishing information to DMV did not become effective until January 1, 2020. A separate enactment, SB 951 from the 2023 Regular Session, became effective on July 1, 2024 and eliminated the option for individuals to pay an uninsured motorist fee at registration in lieu of maintaining motor vehicle liability insurance.

The changes made by the Legislation led to several significant improvements in the efficacy of the IVP, significantly reducing the time insurance companies take to report information to DMV and improving DMV’s ability to use that information to administer the IVP. The Legislation also introduced new processes and procedures that DMV and customers have effectively used to improve the insurance verification process.

DMV does not recommend further legislation at this time. The Legislation has been successful at addressing the issues that were identified in the 2018 DMV-led stakeholder study report of automotive insurance, which precipitated the legislative changes. Additionally, DMV does not yet have sufficient data to assess the impact of eliminating the uninsured motorist fee on the IVP and the number of uninsured motorists because SB 951 has been effect for only a few months. DMV may have legislative recommendations once those impacts become clearer.
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(*1) The Legislation can be found in Appendix A of this report.