(WSET) — A new Virginia law requiring all drivers to have car insurance goes into effect July 1. Before July 1, Virginia was just one of two states that allowed drivers to pay a $600 yearly fee instead of buying auto insurance.
Ray Cochran of the Cochran Insurance Agency said this new law prevents local companies like his from losing money.
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The insurance companies lose a lot of money,” Cochran said. “It’s much better that everybody carries insurance.
According to the Department of Motor Vehicles (DMV), more than six thousand Virginians currently pay this fee to drive around uninsured.
Cochran said that now insurgence companies will notify the DMV if you do not have auto insurance, resulting in a $600 fine and a license suspension.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.