Virginia Law

Article 17. Motor Vehicle Liability Insurance Policies.

A. For all policies effective on or after January 1, 2022, but prior to January 1, 2025, every motor vehicle owner's policy shall:

1. Designate by explicit description or by appropriate reference, all motor vehicles with respect to which coverage is intended to be granted.

2. Insure as insured the person named and any other person using or responsible for the use of the motor vehicle or motor vehicles with the permission of the named insured.

3. Insure the insured or other person against loss from any liability imposed by law for damages, including damages for care and loss of services, because of bodily injury to or death of any person, and injury to or destruction of property caused by accident and arising out of the ownership, use, or operation of such motor vehicle or motor vehicles within the Commonwealth, any other state in the United States, or Canada, subject to a limit exclusive of interest and costs, with respect to each motor vehicle, of $30,000 because of bodily injury to or death of one person in any one accident and, subject to the limit for one person, to a limit of $60,000 because of bodily injury to or death of two or more persons in any one accident, and to a limit of $20,000 because of injury to or destruction of property of others in any one accident.

B. For all policies effective on or after January 1, 2025, every motor vehicle owner's policy shall:

1. Designate, by explicit description or appropriate reference, all motor vehicles with respect to which coverage is intended to be granted.

2. Insure as insured the person named and any other person using or responsible for the use of the motor vehicle or vehicles with the permission of the named insured.

3. Insure the insured or other person against loss from any liability imposed by law for damages, including damages for care and loss of services, because of bodily injury to or death of any person, and injury to or destruction of property caused by an accident and arising out of the ownership, use, or operation of such motor vehicle or vehicles within the Commonwealth, any other state in the United States, or Canada, subject to a limit exclusive of interest and costs, with respect to each motor vehicle, of $50,000 because of bodily injury to or death of one person in any one accident and, subject to the limit for one person, to a limit of $100,000 because of bodily injury to or death of two or more persons in any one accident, and to a limit of $25,000 because of injury to or destruction of property of others in any one accident.

Code 1950, § 46-492; 1954, c. 378; 1958, cc. 501, 541, § 46.1-504; 1968, c. 685; 1972, c. 433; 1975, c. 382; 1978, c. 550; 1989, cc. 621, 727; 2021, Sp. Sess. I, c. 273.

Every driver's policy shall insure the person named therein as insured against loss from the liability imposed upon him by law for damages, including damages for care and loss of services, because of bodily injury to or death of any person, and injury to or destruction of property arising out of the use by him of any motor vehicle not owned by him, within the territorial limits and subject to the limits of liability set forth with respect to a motor vehicle owner's policy.

Code 1950, § 46-493; 1958, c. 541, § 46.1-505; 1989, c. 727.

Every policy of insurance subject to the provisions of this chapter:

1. Shall contain an agreement that the insurance is provided in accordance with the coverage defined in this chapter as respects bodily injury, death, property damage, and destruction and that it is subject to all the provisions of this chapter and of the laws of the Commonwealth relating to this kind of insurance; and

2. May grant any lawful coverage in excess of or in addition to the coverage herein specified and this excess or additional coverage shall not be subject to the provisions of this chapter but shall be subject to other applicable laws of the Commonwealth.

Code 1950, § 46-494; 1958, c. 541, § 46.1-506; 1989, c. 727.

No policy required under this chapter shall be issued or delivered in the Commonwealth unless it complies with §§ 38.2-2218 through 38.2-2225, with all other applicable and not inconsistent laws of the Commonwealth, and with the terms and conditions of this chapter.

Code 1950, § 46-495; 1958, c. 541, § 46.1-507; 1989, c. 727.

Policies issued under this chapter shall not insure any liability of the employer on account of bodily injury to, or death of, an employee of the insured for which benefits are payable under any workers' compensation law.

Code 1950, § 46-496; 1958, c. 541, § 46.1-508; 1989, c. 727.

This chapter shall not apply to any policy of insurance except as to liability thereunder incurred after certification thereof as proof of financial responsibility.

Code 1950, § 46-496.1; 1958, c. 541, § 46.1-509; 1989, c. 727.

Several policies of one or more insurance carriers which together meet the requirements of this chapter shall be deemed a motor vehicle liability policy within the meaning of this chapter.

Code 1950, § 46-497; 1958, c. 541, § 46.1-510; 1989, c. 727.

Every policy shall be subject to the following provisions which need not be contained therein:

1. The liability of any insurance carrier to the insured under a policy becomes absolute when loss or damage covered by the policy occurs and the satisfaction by the insured of a judgment for the loss or damage shall not be a condition precedent to the right or duty of the carrier to make payment on account of the loss or damage;

2. No policy shall be cancelled or annulled, as respects any loss or damage, by any agreement between the carrier and the insured after the insured has become responsible for the loss or damage and any attempted cancellation or annulment shall be void;

3. If the death of the insured occurs after the insured has become liable, during the policy period, for loss or damage covered by the policy, the policy shall not be terminated by the death with respect to the liability and the insurance carrier shall be liable hereunder as though death had not occurred;

4. On the recovery of a judgment against any person for loss or damage, if the person or the decedent he represents was at the accrual of the cause of action insured against the liability under the policy, the judgment creditor shall be entitled to have the insurance money applied to the satisfaction of the judgment;

5. If the death, insolvency, or bankruptcy of the insured occurs within the policy period, the policy during the unexpired portion of the period shall cover the legal representatives of the insured; and

6. No statement made by the insured or on his behalf and no violation of the terms of the policy shall operate to defeat or avoid the policy so as to bar recovery within the limits provided in this chapter.

Code 1950, § 46-498; 1958, c. 541, § 46.1-511; 1989, c. 727.

Any policy may provide:

1. That the insured, or any other person covered by the policy, shall reimburse the insurance carrier for payments made on account of any accident, claim, or suit involving a breach of the terms, provisions, or conditions of the policy; or

2. For proration of the insurance with other applicable valid and collectible insurance.

Code 1950, § 46-499; 1958, c. 541, § 46.1-512; 1989, c. 727.

Insurance carriers authorized to issue policies as provided in this chapter may, pending the issuance of the policy, execute an agreement to be known as a binder, which shall not be valid beyond sixty days from the date it becomes effective, or may, in lieu of a policy, issue an endorsement to an existing policy, each of which shall be construed to provide indemnity or protection in like manner and to the same extent as a formal policy. The provisions of this chapter apply to these binders and endorsements.

Code 1950, § 46-500; 1958, c. 541, § 46.1-513; 1989, c. 727.

When any insurance policy certified under this chapter is cancelled or terminated, the insurer shall report the fact to the Commissioner within fifteen days after the cancellation on a form prescribed by the Commissioner.

1976, c. 259, § 46.1-513.2; 1989, c. 727.