Who may still require you to have collision insurance, even though it is not mandated by law in Virginia?

The correct answer highlights the relationship between financing a vehicle and the requirements for insurance coverage. When you take out a loan to buy a car, the finance company has a vested interest in protecting its investment. If the vehicle is damaged or totaled, the finance company wants to ensure that the loan will be repaid and that the vehicle can be repaired or replaced. Therefore, they may require you to carry collision insurance, which covers damage to your own vehicle resulting from an accident, regardless of fault.

This requirement is often stipulated in the loan agreement and is not dictated by state law, which means you may be legally permitted to drive without collision coverage, but your lender can enforce this condition to safeguard their financial interest in the vehicle. In contrast, the other options presented do not accurately reflect common practices regarding insurance requirements based on various circumstances.