Information on Virginia's New FR-44 Requirement

Effective January 1, 2008, Virginia law requires a person convicted of certain driving violations to purchase a liability insurance policy with coverage double the minimum limits. This means those convicted of driving under the influence of alcohol or drugs or driving after the forfeiture of their drivers licenses must purchase limits of at least $50,000 for injury or death to one person, $100,000 for injury or death of two or more people, and $40,000 for property damage. In November, the Virginia Division of Motor Vehicles sent a “Notice of Requirement” to those who fit into one of these categories, advising them that they must have an insurance company file a FR44, a new form showing they have at least $50/$100/$40 coverage. (Another new form is FR46 which companies submit to the DMV when coverage is cancelled.) It is the responsibility of the driver – not the company or the agent – to see that these limits are in effect. Although it is permissible for companies and agents to advise insureds of the new requirement, it is not mandatory. Another point in which you may be interested is that you can mandate limits higher than those required, and you may want to do so, especially if your companies do not have a $50/$100/$40 filing. Some agents already have procedures that require their insureds to purchase limits higher than those required by law. Electronic copies of the DMV forms have been sent to companies, but the companies can require agents to complete the forms if they prefer.