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A spokesperson for the Virginia Department of Motor Vehicles confirmed that a Virginia address is not required for legally registering a vehicle in the state, making Virginia one of only a few states with such a policy. Consequently, thousands of Maryland residents have been registering their vehicles in Virginia for many years.
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Virginia also allows drivers to pay an uninsured motorist fee instead of purchasing auto insurance, and the state’s Department of Motor Vehicles does not mandate residency in Virginia for vehicle registration. However, beginning July 1, 2024, Virginia will discontinue allowing motorists to pay the $500 uninsured motorist fee, mandating proof of insurance for vehicles registered in the state.
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In response to this loophole, a Maryland state lawmaker has introduced legislation empowering the city to tow vehicles not properly registered with the Maryland MVA. This issue is not new. In 1987, The Washington Post reported that as many as 40,000 Maryland residents were registering their vehicles in Virginia to avoid higher taxes and insurance premiums, resulting in a loss of up to $10 million in revenue for Maryland. According to Bankrate, the average annual auto insurance premium in Maryland is $2,496, compared to $1,990 in Virginia.
source: The DMV Daily
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