Virginia Automobile Insurance Plan (VAIP)
Find Cheap Auto Insurance Quotes in Virginia
In the Commonwealth of Virginia, all drivers must carry auto insurance. Since 1945, Virginia has provided the Virginia Automobile Insurance Plan (VAIP) to its high-risk drivers who have been unable to find auto insurance coverage in the voluntary (mainstream) market. Once you receive coverage through the VAIP, you should focus on improving your driving record, which will make you eligible for insurance in the voluntary market and cheaper insurance rates.
Contents
What is the Virginia Auto Insurance Plan (VAIP)?
Virginia's Bureau of Insurance created the VAIP to make automobile insurance available to drivers who have a vehicle registered with the Virginia Department of Motor Vehicles but cannot find an auto insurance company to insure them voluntarily. The VAIP functions as a "market of last resort," to assist high-risk drivers in finding an insurer.
The VAIP itself is not an insurance company. It's an organization that randomly assigns drivers to car insurance companies in proportion to the amount of business each insurer writes for the voluntary market in the state.
You may not request a specific auto insurance company. Your premium quotes, policy numbers, billing information and claims will all be handled by the insurance company to which you are assigned.
VAIP eligibility
In Virginia, you have to certify on your application that you've tried and failed to find auto insurance in the voluntary market at least once in the previous 60 days.
Virginia's Bureau of Insurance recommends trying several companies, because rates and coverages can vary. However, if you have no luck in the voluntary market, you can apply for insurance through the VAIP as long as you:
- Live in Virginia
- Have a vehicle registered (or about to be registered) in Virginia
You may not qualify for insurance through the VAIP if:
- You don't have a valid driver's license or learner's permit
- You don't pay your insurance premiums on time
- You don't present your vehicle for inspection if you've chosen insurance that covers physical damage to your car
As soon as the problem is resolved, you may reapply for insurance.
VAIP coverage
When you apply for insurance through the VAIP, you must purchase at least the minimum amount of coverage required by Virginia's financial responsibility law. You can also choose to pay for higher limits or optional coverage, which is not required by law but will further protect your assets.
Virginia minimums and VAIP limits | Basic coverages | Higher limits of coverage |
|---|---|---|
| $50,000 per person/$100,000 per accident | $100,000/$300,000 | |
| $25,000 | $50,000 | |
| $50,000 per person/$100,000 per accident/$25,000 PD | $100,000/$300,000 |
If you can afford it, consider additional coverage, which may provide you with more peace of mind and protect significant assets. Although you'll be paying more for your annual premium, you'll have more financial protection in case of an accident.
Optional coverages through the VAIP | |
|---|---|
| Available up to $2,000 | |
|
Loss of income | Up to $100/week for no more than 52 weeks |
| Actual cash value of your insured car at the time of loss, subject to deductibles | |
| Up to $600 |
Virginia allows coverage limits for collision and "other than collision" to be set by your insurance company. Some insurers may not offer this coverage, based on how they assess you as a risk. Others may cover you, but at rates and coverage limits they negotiate with you.
Your designated insurer is required to insure you for a period of three years, but you'll choose whether to renew with your insurer yearly, not after the full three years. That means you'll only have to remain insured through the VAIP until you're able to buy auto insurance in the voluntary market.
Before renewing your policy with your designated insurer through the VAIP each year, you should search for and compare auto insurance quotes in the voluntary market. If you haven't been in any new accidents or convicted of violations, you should have a better chance of finding an insurer in the voluntary market.
After the three-year period, your assigned VAIP insurer can either renew your policy voluntarily or place you back in the pool if you are still considered a high-risk driver. If so, the VAIP will assign you to a new insurer for another three-year term.
VAIP premiums and payments
You'll usually be able to find cheaper auto insurance rates in the voluntary market than through the VAIP.
Premiums in Virginia's voluntary market are somewhat "middle of the pack," compared with other states. The average Virginian driver pays $1,416 annually for auto insurance. Based on your driving record and the number of points on your license, your premium through the VAIP could be a lot more expensive.
The VAIP offers two payment plans: a full-annual-premium payment option and an installment payment option. Decide which payment plan will be more suitable for you, based on your financial circumstances:
- Full-annual-premium payment option: When you apply for coverage through the VAIP, you will have to pay 100% of the premium up-front.
- Installment premium payment option: You will have to submit a deposit of 25% of the premium up front, followed by five 15% payments.
When you are insured through the VAIP, it's wise to check for cheaper insurance as your policy renewal date approaches. If you find cheaper insurance on the voluntary market and cancel your VAIP policy in the middle of the term, you will be charged an administrative fee to process this change.
How to get insurance through the VAIP
Contact any licensed auto insurer in Virginia to inquire about high-risk insurance. Be sure to shop around to find the best policy for your situation.
For more information about the VAIP, call Virginia's Bureau of Insurance at 1-800-552-7945 or visit the VAIP website.
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