Virginia Code 46.2-1536: Coercing purchaser to provide insurance coverage on motor vehicle; penalty.
It shall be unlawful for any dealer or salesperson or any employee of a dealer or representative of either to coerce or offer anything of value to any purchaser of a motor vehicle to provide any type of insurance coverage on the motor vehicle.
Attorney's Note
Under the Virginia Code, punishments for crimes depend on the classification. In the case of this section:| Class | Prison | Fine |
|---|---|---|
| Class 1 misdemeanor | up to 12 months | up to $2,500 |
Terms Used In Virginia Code 46.2-1536
- Contract: A legal written agreement that becomes binding when signed.
- motor vehicle: includes trailers, as defined in this section, and does not include (i) manufactured homes, sales of which are regulated under Virginia Code 46.2-1500
- Person: includes any individual, corporation, partnership, association, cooperative, limited liability company, trust, joint venture, government, political subdivision, or any other legal or commercial entity and any successor, representative, agent, agency, or instrumentality thereof. See Virginia Code 1-230
- salesperson: means (i) any person who is hired as an employee by a motor vehicle dealer to sell or exchange motor vehicles and who receives or expects to receive a commission, fee, or any other consideration from the dealer; (ii) any person who supervises salespersons employed by a motor vehicle dealer, whether compensated by salary or by commission; (iii) any person, compensated by salary or commission by a motor vehicle dealer, who negotiates with or induces a customer to enter into a security agreement on behalf of a dealer; or (iv) any person who is licensed as a motor vehicle dealer and who sells or exchanges motor vehicles. See Virginia Code 46.2-1500
- Vehicle: means every device in, on or by which any person or property is or may be transported or drawn on a highway, except personal delivery devices and devices moved by human power or used exclusively on stationary rails or tracks. See Virginia Code 46.2-100
Nothing in this section shall prohibit a dealer from requiring that a retail customer obtain automobile physical damage insurance to protect collateral secured by an installment sales contract. Any person found guilty of violating any of the provisions of this section is guilty of a Class 1 misdemeanor.
Nothing in this section shall prohibit a dealer from informing the retail customer of the Commonwealth’s insurance requirements.
Code 1950, § 46-536; 1958, c. 541, § 46.1-548; 1988, c. 865; 1989, c. 727; 1995, cc. 767, 816; 2015, c. 615.