Car Insurance in Virginia – State Minimums and Finding Low Rates
Posted by Tom Carolan on Fri, Dec 11, 2009 @ 11:45 AM
There are several questions you should think about when shopping for
car insurance in Virginia. For instance: What are the minimum requirements for auto
insurance? Where can I find a low cost policy from a quality company? Where will I get the best quote? This article will help you answer these and other important questions.
Most drivers understand how car insurance works in the United States. Certain details, however, are less clear. For example, how is it possible that two drivers with the same age pay different car insurance premiums? Why do city drivers pay more than people who live in the country? Why are older cars cheaper to insure? The main causes for differences in auto insurance rates are the risk factors that insurance providers analyze.
When you sign a policy with a car insurance provider, you promise to pay them a certain amount every month in exchange for their promise to pay for expenses associated with possible car accidents. Basically, the insurance company is protecting you from the risks inherent in driving. The facts that some parts of the country are more dangerous to drive in than others, that some vehicles are stolen more than others, and that some cars are cheaper to repair than others all have very real effects on insurance premiums.
The cost of auto insurance also differs between individual states. States with a higher quantity of densely populated cities are naturally more dangerous to drive in and therefore are home to higher insurance rates. The frequency of car robberies in a particular state also affects the price of car insurance. Virginia is neither the cheapest nor the most expensive state to insure a vehicle in since there are both rural areas and big cities.
The estimated population of Virginia in 2007 was 7,642,884. That was 8% higher than the 2006 estimate and it is expected to keep on increasing. In 2003, population figures did not seem to have a large bearing on the car insurance rates in Virginia, since the average rate was $752 per year and the national average was $914, substantially higher.
Each state sets a minimum coverage that drivers must carry in order to legally operate a motor vehicle. This is also true in Virginia, where the law stipulates that one party must always be at fault when an accident occurs. The person found to be at fault and their insurance provider are thus responsible for handling the expenses incurred as a result of the accident. The minimum insurance rates for Virginia are similar to those of many other states, 25/50/20. These figures represent $25,000 in bodily injury coverage per person injured, $50,000 in total bodily injury coverage per accident, and $20,000 in property damage coverage per accident. These figures only reflect the minimum levels of liability coverage that the state of Virginia requires drivers to carry by law. Insurance companies offer higher degrees of coverage to drivers who are interested.
Some states require you to have PIP (Personal Injury Protection) insurance as well; Virginia does not. Having PIP insurance is a wise choice, however, since it covers medical expenses for you and anyone in your car during an accident. Virginia law does demand that you have a total of $25,000 per person and $50,000 per accident in uninsured or underinsured motorist protection.
Even though these insurance minimums may seem high, they really aren't when compared to the minimums required in other states. It is also true that not every driver will be able to choose to carry just the minimum coverage. For instance, a person who is leasing a vehicle must carry comprehensive and collision insurance. All of these requirements are based off of risk factors for accidents and car theft.
You can manage to lower your premiums even if you have to carry more coverage by lowering your deductible. Insurance companies offer lower rates to drivers with low deductibles because the company will not have to pay out as much money in the event of an accident.
Unnecessary parts of your policies can be dropped if you wish. For instance, medical coverage is not an essential part of a car insurance policy. For people whose medical insurance will cover any expenses if they are injured in an accident, it would not be necessary to have the same coverage on their car insurance policy as well.
Virginia is a lovely state to both live and vacation in. Fortunately, living in this state will not force you to pay exorbitant car insurance rates. As long as you are sure that you are carrying the minimum coverage required by state law, you can do a lot to make your rates lower. Dropping coverage you don't need and lowering your deductible are two good ways to do so.