Virginia Law

Article 2. Insurance Requirements.

Unless otherwise stated, this article shall apply to all motor carriers except transportation network companies.

2001, c. 596; 2015, cc. 2, 3.

Each motor carrier shall keep in force at all times insurance, a bond, or bonds, in an amount required by this article.

2001, c. 596.

A. No certificate, permit, identification marker, registration card, or license plate shall be issued by the Department to any vehicle operated by a motor carrier until the motor carrier certifies to the Department that the vehicle is covered by:

1. An insurance policy or bond;

2. A certificate of insurance in lieu of the insurance policy or bond, certifying that such policy or bond covers the liability of such motor carrier in accordance with the provisions of this article, is issued by an authorized insurer, or in the case of bonds, is in an amount approved by the Department. The bonds may be issued by the Commonwealth of Virginia, the United States of America, or any municipality in the Commonwealth. Such bonds shall be deposited with the State Treasurer and the surety shall not be reduced except in accordance with an order of the Department;

3. An unconditional letter of credit, issued by a bank doing business in Virginia, for an amount approved by the Department. The letter of credit shall be in effect so long as the motor carrier operates motor vehicles in the Commonwealth; or

4. In the case of a lessor who acts as a registrant for purposes of consolidating lessees' vehicle registration applications, a statement that the registrant has, before leasing a vehicle, obtained from the lessee an insurance policy, bond, or certificate of insurance in lieu of the insurance policy or bond and can make available said proof of insurance coverage upon demand.

Vehicles operated by carriers who have filed proof of financial responsibility in accordance with the single state registration system authorized by 49 U.S.C. § 14504 or the Unified Carrier Registration System authorized by 49 U.S.C. § 14504a are deemed to have fulfilled the requirements of this article for insurance purposes, provided there is on board the vehicle a copy of an insurance receipt issued pursuant to the federal regulations promulgated pursuant to 49 U.S.C. § 14504 or 14504a. The Department is further authorized to issue single state registration system or unified carrier registration system receipts to any qualified carrier as well as to collect and disperse the fees for and to qualified jurisdictions.

B. All motor carriers shall keep in force at all times insurance, a bond or bonds, in an amount required by this section. Except for taxicabs, the minimum financial responsibility requirements for motor carriers operating intrastate shall be based on the number of passengers a vehicle is designed or manufactured to transport, including the driver, and shall be as follows: one to six passengers -- $350,000; seven to 15 passengers -- $1,500,000; 16 or more passengers -- $5,000,000. All motor carriers operating exclusively taxicabs or other motor vehicles performing a taxicab service shall maintain liability insurance of at least $125,000.

C. The minimum insurance for motor carriers operating in interstate commerce shall equal the minimum required by federal law, rule, or regulation. Any motor carrier that meets the minimum federal financial responsibility requirements and also operates in intrastate commerce may submit, in lieu of a separate filing for its intrastate operation, proof of the minimum federal limits, provided that both interstate and intrastate operations are insured.

2001, c. 596; 2006, c. 208.

A. Each motor carrier shall keep on file with the Department proof of an insurance policy or bond in accordance with this article. Record of the policy or bond shall remain in the files of the Department six months after the certificate, registration card, license plate, identification marker or permit is canceled for any cause. If federal, state, or municipal bonds are deposited with the State Treasurer in lieu of an insurance policy, the bonds shall remain deposited until six months after the registration card, license plate, certificate, permit or identification marker is canceled for any cause unless otherwise ordered by the Department.

B. The Department may, without holding a hearing, suspend a permit or certificate if the permittee or certificate holder fails to comply with the requirements of this section.

2001, c. 596.

The insurance, bond or other security provided for in § 46.2-2054 shall obligate the insurer or surety to pay any final judgment for (i) injury to any passenger or passengers and (ii) any and all injuries to persons and loss of or damage to property resulting from the negligent operation of any motor vehicle.

2001, c. 596.

The provisions of subdivisions 4, 6, 11, and 12 of subsection A of § 38.2-510 shall apply to each holder of a certificate or permit issued by and under the authority of the Department who, in lieu of filing an insurance policy, has deposited with the State Treasurer state, federal or municipal bonds or has filed an unconditional letter of credit issued by a bank. The failure of any such holder of a certificate or permit to comply with the provisions of § 38.2-510 shall be the cause for revocation or suspension of the certificate or permit.

2001, c. 596.

A. Each operator of a motor vehicle performing a bona fide taxicab service shall file insurance as required under this article unless evidence can be shown to the Department that the operator (i) is a self-insurer under an ordinance of the city or county where the home office of the operator is located or (ii) has been issued a certificate of self-insurance pursuant to § 46.2-368.

B. Any self-insurance protection subject to this section shall provide for protection against the uninsured or underinsured motorist to the extent required by § 38.2-2206. Notwithstanding § 38.2-2206 or any other provision of this title, protection against the uninsured or underinsured motorist shall be subject to a limit exclusive of interest and costs, with respect to each motor vehicle, as follows: (i) a limit of $25,000 due to bodily injury to or death of one person in any one accident; (ii) subject to the limit for one person, a limit of $50,000 due to bodily injury or death of two or more persons in any one accident; and (iii) a limit of $20,000 due to injury to or destruction of property of others in any one accident. The amount of bodily injury or property damage liability coverage available for payment from any source shall be credited against and reduce the amount of protection otherwise available against an underinsured motorist. Nothing herein shall preclude any self-insurer operator from purchasing or providing uninsured or underinsured motorist insurance coverage in an amount greater than required in this subsection. Such protection against uninsured and underinsured motorists shall be secondary coverage to any other valid and collectible insurance providing the same protection that is available to any person otherwise entitled to assert a claim to such protection by virtue of this section.

2001, c. 596; 2021, Sp. Sess. I, c. 273; 2022, c. 308.

If the operator of any taxicab or other motor vehicle performing a taxicab service is a self-insurer under an ordinance of the city or county where the home office of the operator is located, such operator shall not be required to obtain and keep on file with the Department insurance as required by law.

2001, c. 596.