Non Compliance Fee Payment Plan
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These changes are the result of a request from the 2018 General Assembly session for DMV to convene a stakeholder group to discuss automobile insurance in Virginia and make recommendations to increase compliance with Virginia’s insurance laws. The bills, HB 1867/SB1787, include new offerings for DMV effective July 1, 2019, and enhancements and changes to the way insurance companies and DMV interact regarding insurance verification effective January 1, 2020.
New offerings for DMV effective July 1, 2019 include:
1.Customers may choose to permanently surrender license plates at www.dmvnow.com and not return the license plates to DMV. They will not receive a partial refund of the cost of registration fees when selecting this convenience option.
2.Customers with insurance-related orders of suspension that are in an effective status as of July 1, 2019, may have all fees waived, including the reinstatement fee, if the customer can provide proof of insurance.
3.The term used for the insurance-related fee, when DMV or the court determines that a person is not in compliance with Virginia insurance requirements, is changing from a “statutory fee” to a “noncompliance fee”.
4.The non-compliance fee increases from $500 to $600.
5.DMV has a payment plan option for customers to pay the non compliance fee over time in monthly payments. This payment plan option is now available to non-Virginia residents who still owe the non-compliance fee in Virginia.
6.Customers who are currently in default on a payment plan agreement with DMV have the opportunity to reenter into a payment plan by paying a $25 administrative fee to continue paying the non-compliance fee over time in monthly payments.
During the 2016 General Assembly, HB388 was passed to allow DMV to establish a Statutory Fee payment plan to allow individuals to pay the $500 fee through an installment plan with DMV, when their driving and vehicle registration privileges have been suspended/revoked for one of the following reasons:
•IM01, IM02, IM03 and IM04 orders for failure to comply with insurance monitoring requirements •CV01 for conviction of Operating or Permitting the Operation of an Uninsured Motor Vehicle
To be eligible to enter the payment plan, the customer must:
•Have an outstanding suspension imposed for one of the above reasons •Have met all other requirements for reinstatement, except payment of the Statutory Fee. •Must be 18 years old or older and be a Virginia resident •Cannot have the 12 digit system generate customer number •Cannot have defaulted on a previous payment plan •Cannot have an active hearing on the order
DMV will reinstate the driving and registration privileges once the individual:
•enters into a payment plan agreement with DMV •pays the license reinstatement fee and Multiple Order Fee •pays an administrative fee ($25) •files proof of financial responsibility (SR-22)
When entering into the payment plan, the customer signs a Statutory Fee Payment Plan Eligibility agreement with DMV and pays a $25 administrative fee. The administrative fee is used by DMV solely to cover the cost of administering this program.
In cases of nonpayment or missed payments (Default), DMV will re-suspend the person’s (Owner and Co-owner) driving and vehicle registration privileges and the total amount remaining will be due. A person may repay the total balance of the statutory fee at any time during the repayment period. Drivers who enter the installment plan and later default will not be eligible to enter a subsequent statutory fee installment plan.
DMV is only authorized to offer an installment payment plan for orders that require a Statutory Fee.
For more information about the Statutory Fee Payment Plan see VLIC-4.436
This bill has an effective date of January 1, 2017.
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When making payments on a co-owned vehicle(s), the payment applies to the statutory fee that is jointly owed FIRST. If both owners are in their own contract for the same vehicle(s), payment made by either owner reduces the statutory fee of the co-owned vehicle(s). Once that statutory fee is paid, any payments made will apply to next statutory fee in the contract.