Liability Insurance for Exempt Vehicles Now Required by Virginia Law – InsuranceNewsNet


Declaration (Independence, VA)

In the interest of public safety, motorists have long been required by Virginia law to include liability coverage on their automobile insurance policies for personal and commercial vehicles.

This law now extends to motorists who drive vehicles exempt from registration requirements as defined by the Code of Virginia. This requirement is part of SB 733, which has become Virginia law on July, 1st.

SB 733 was introduced by Sen. Frank M.Ruff Jr.. (R-clarksville) during the year 2022 Virginia General Assembly in part to mitigate the misuse of farm use signs. This issue was also addressed in HB 179 and SB 186, which will come into force July 1, 2023.

“The new law now requires all motor vehicles exempt from registration to be covered by some type of liability insurance, including vehicles for agricultural use,” explained Andre Smith, Virginia Federation of Agricultural Bureaux Deputy Director of Government Relations.

“Because exempt vehicles are not registered, they were not required to carry liability insurance,” he added. “With new legislation now in force, farmers must have cover in place when driving their vehicles on public roads.”

In addition to farm-use vehicles, the new legislation requires any exempt vehicle, trailer or semi-trailer to be insured with bodily injury liability and property damage liability insurance.

This coverage can be obtained under a general liability insurance policy, an automobile insurance policy or an umbrella policy, which can include farm owner policies.

The bill also states that motorists may be required to provide proof to law enforcement that their vehicles, trailers or semi-trailers are insured under SB 733. Proof must be provided within 30 days.

Failure to provide such proof will subject motorists to a $600 traffic fine which will be paid to the Virginia Department of Motor Vehicles Uninsured Motorist Fund.