Vermont Car Insurance Laws (2026)

Vermont has comparative negligence laws, which means drivers can recoup a share of their losses after a car accident even if they were partially responsible. Your recoverable damages are reduced by your share of fault in the accident, and you can’t receive money from the other driver’s insurance if you were more than 50% at fault.^[1]

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Auto insurance requirements in Vermont

Vermont drivers are legally required to carry a minimum amount of car insurance. You can see the Vermont car insurance requirements in the table below.^[2]

Coverage	Required Amount
Bodily injury liability coverage	$25,000 per person/$50,000 per accident
Property damage liability coverage	$10,000 per accident
Uninsured/underinsured motorist bodily injury liability coverage	$50,000 per person/$100,000 per accident
Uninsured/underinsured motorist property damage liability coverage	$10,000 per accident (with a $150 deductible)

Vermont’s car insurance requirements fall somewhere in the middle compared to other New England states. The minimum bodily injury limits in Vermont are the same as in Rhode Island and Connecticut, but lower than in Maine.

But Vermont drivers must carry higher limits for uninsured/underinsured motorist (UM/UIM) coverage than what most other states in the region require.

UM/UIM insurance kicks in when you get into a car accident with a driver who’s uninsured or doesn’t have enough insurance coverage to pay for your losses in full. Even though Vermont requires this coverage, less than 12% of drivers in the state are uninsured, according to the Insurance Research Council.

Is state-minimum car insurance in Vermont enough coverage?

State-minimum car insurance in Vermont usually doesn’t provide enough financial protection if you cause an accident.^[3] Many drivers in Vermont can benefit from adding these optional coverages:

• Collision coverage: Collision insurance covers damage to your own vehicle when you get into an accident or hit a stationary object, like a guardrail or fence.

• Comprehensive coverage: Comprehensive insurance covers vehicle damage from non-collision events, like hitting a deer, flooding, hail, and theft. Between September 2024 and September 2026, about 600 cars were stolen in Vermont, according to FBI crime reports.

• Roadside assistance: Roadside assistance coverage pays for basic roadside repairs, like flat-tire changes and towing, if you get stranded. It can be worth adding because Vermont has more dirt roads than paved roads, and repair shops could be hard to come by.^[4]

• Rental reimbursement: If a covered loss damages your car, rental reimbursement pays for a rental car while yours gets repaired. Most policies pay between $15 and $20 per day for a set number of days.

Penalties for driving without insurance in Vermont

Driving without car insurance in Vermont is a civil traffic violation, with a maximum fine of $500 and points on your driver’s license. You’ll also need to carry SR-22 insurance for at least three years if you’re caught driving uninsured. If your SR-22 certificate lapses, Vermont will suspend your license until you provide updated proof of car insurance.

Vermont drivers who need to carry SR-22 insurance must get a certificate through an insurance company that’s licensed to operate in Vermont. If you’re an out-of-state driver and need an SR-22 in Vermont, your car insurance company can file the certificate with the Vermont Department of Motor Vehicles (DMV) and your home state, but only if the insurer is also licensed in Vermont.^[5]

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Vermont drivers can demand an in-person claim inspection

If you file a claim for vehicle damage in Vermont, you have the right to an in-person inspection, even if you initially agreed to a virtual, photo-based estimate.

Insurance Bulletin 206 from the Vermont Department of Financial Regulation states that a Vermont insurance company must send a licensed adjuster to inspect your vehicle in person if requested or when photos don’t show the full extent of the damage.

If a covered loss totals your car, your insurance company can’t deduct reconditioning costs for your car’s condition unless an adjuster or appraiser inspected it in person.^[6]

Vermont insurance laws FAQs