Car Insurance Requirements in Vermont (2024)
In Vermont, drivers are required to carry liability insurance with limits of 25/50/10. Drivers also need uninsured/underinsured coverage with 50/100/10 limits.
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Written byKim Porter
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Co-authored the book “Future Millionaires’ Guidebook”
13 years writing personal finance content
A former chief copy editor at Bankrate and past managing editor at Macmillan, Kim specializes in writing easy-to-understand, actionable personal finance content.
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Edited byChris Schafer
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15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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Updated November 20, 2024
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Table of contents
Vermont has one of the smallest populations in the U.S., so you’re more likely to encounter rural wooded roads than congested highways.[1] But drivers in the Green Mountain State still have to deal with potential dangers like collisions with wildlife, unpaved roads, and winter conditions that make navigation difficult.
Drivers in Vermont are required to buy two different types of car insurance: liability coverage and uninsured/underinsured motorist coverage.
Here’s what you should know about auto insurance requirements in Vermont.
Vermont car insurance requirements
Auto insurance policies in Vermont must include the following types of coverages with these minimum limits:
Bodily injury liability: $25,000 per person and $50,000 per accident
Property damage liability: $10,000 per accident
Uninsured/underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
Uninsured/underinsured property damage: $10,000 per accident[2]
Bodily injury liability
Bodily injury liability insurance protects you from legal liability if you cause a car accident that unintentionally injures or kills someone. The coverage pays for the other driver’s medical bills, but it doesn’t cover you or your passengers’ injuries.
In Vermont, your bodily injury liability policy needs to have coverage limits of at least $25,000 per person and $50,000 per accident.
Property damage liability
Property damage liability coverage pays to repair or replace another person’s property if you, a household member, or someone else driving your car causes accidental damage to another person’s vehicle or other property.
Your Vermont property damage liability policy needs to have at least $10,000 per accident in coverage.
Uninsured/underinsured bodily injury
Uninsured motorist coverage pays for your injuries if you have an accident with an uninsured driver or you’re the victim of a hit-and-run. Underinsured coverage applies if another person causes an accident and has insurance but their limits aren’t high enough to cover your bills.
The minimum policy limits in Vermont for uninsured/underinsured motorist bodily injury coverage are $50,000 per person and $100,000 per accident.
Uninsured/underinsured property damage
You must also carry $10,000 in uninsured/underinsured property damage coverage. You won’t be able to raise your limits here, since the maximum amount you can purchase is $10,000. This coverage is subject to a $150 deductible in Vermont.
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Vermont Automobile Insurance Plan
VAIP
You may have trouble buying car insurance if you have a serious traffic violation, coverage lapse, or an at-fault accident on your driving record. Insurance companies often view these incidents as making you too risky to insure.
If this is true for you, the Vermont Automobile Insurance Plan (VAIP) is a state-run program that provides insurance for drivers who can’t find coverage through the voluntary marketplace.[3] To qualify, you must certify that you’ve tried but were unable to secure auto insurance within the past 60 days.
Then, VAIP will assign you to a participating insurance company to receive coverage. Premiums are typically more expensive compared to standard policies because you present a higher risk to the insurer.
Do you need more than state-minimum coverage in Vermont?
In short, no. Vermont residents aren’t legally required to buy insurance beyond the state-mandated minimum coverage.
However, around three-quarters of drivers in the U.S. choose to purchase collision and comprehensive insurance, which are optional coverages. Collision insurance pays for your vehicle repairs following an auto accident, and comprehensive coverage kicks in when you’re involved in a non-collision event like vandalism or theft.
Lenders typically require borrowers to purchase collision and comprehensive coverage when leasing or financing a car. But even if your car is paid off, you may decide to buy full-coverage insurance if you think you’d struggle to pay for repairs following an incident.
Keep in Mind
You might also choose to increase your policy limits for the state’s required coverages.
“If you have a major financial asset to protect, such as a house, you probably ought to buy more coverage if you can afford it,” according to the Vermont Department of Financial Regulation.
The cost of liability-only car insurance in Vermont
Vermont drivers pay $68 per month, on average, for a liability-only policy. This minimum coverage includes liability car insurance and uninsured/underinsured motorist coverage. Liability insurance pays for the other driver’s medical costs and property damage when you’re at fault in an accident.
Uninsured/underinsured coverage pays your costs if someone else causes an accident but flees the scene or lacks enough insurance to cover all your bills.
Because minimum-coverage insurance policies are limited, they’re generally less expensive than full-coverage policies.
Here are average monthly quotes from several top insurers in the state.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Monthly Quote ▲▼ |
|---|---|
| State Farm | $19 |
| USAA | $39 |
| Safeco | $50 |
| Liberty Mutual | $51 |
| GEICO | $55 |
| Progressive | $55 |
| Foremost | $62 |
| Dairyland | $64 |
| Allstate | $70 |
| The General | $72 |
| Nationwide | $75 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
The cost of full-coverage car insurance in Vermont
In the state of Vermont, drivers pay an average of $154 per month for full-coverage car insurance.
True to its name, full-coverage car insurance carries more coverage than a liability-only policy. Full coverage typically includes liability insurance, uninsured/underinsured insurance, and both collision and comprehensive coverages that can help pay for repairs to your own property and medical costs for you and your passengers.
Here are average monthly quotes from several top insurance companies in the state.
The below rates are estimated rates current as of: Friday, November 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Monthly Quote ▲▼ |
|---|---|
| State Farm | $43 |
| USAA | $84 |
| Safeco | $87 |
| Progressive | $118 |
| GEICO | $123 |
| Liberty Mutual | $133 |
| Foremost | $148 |
| Allstate | $154 |
| Nationwide | $162 |
| The General | $180 |
| Dairyland | $222 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Penalties for driving without proof of insurance in Vermont
You must have car insurance before registering your vehicle with the Vermont Department of Motor Vehicles. The Vermont DMV doesn’t keep proof of coverage on file, but you’ll need to certify that your insurance meets the legal requirement.[4] Law enforcement officers can ask for proof of insurance when they pull you over or at traffic safety checkpoints.
If you’re caught driving without insurance in Vermont, the penalties may include:
A fine of $100 if you can’t show proof of insurance
A fine of $500 for not having a car insurance policy with minimum liability coverage
Driver’s license suspension if you can’t provide proof of insurance within 20 days of being asked
An $82 fee to reinstate your driving privileges
Cheapest recent rates in Vermont
Drivers in and around Vermont have found policies from Liberty Mutual, Safeco, Allstate, and more, through Insurify in the last few days.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Optional car insurance coverages to consider
If you want to enhance your car insurance coverage beyond state minimums, you may consider the following coverage options:
Medical payments coverage
Medical payments coverage helps pay for medical expenses resulting from a car accident, regardless of who’s at fault.
Collision coverage
Collision insurance covers repair bills if your car collides with another car or object.
Comprehensive coverage
Comprehensive insurance protects against non-collision incidents, like theft and severe weather, as well as collisions with animals.
Roadside assistance coverage
Roadside assistance coverage helps when your car breaks down on the road. Coverage varies with each insurer, but you may get towing, tire changes, and fuel-delivery services.
Rental reimbursement coverage
Rental reimbursement coverage helps pay for the costs of a rental car while your car is in the shop due to a covered claim.
Vermont car insurance requirements FAQs
Looking for more information on car insurance requirements in Vermont? Find the answers you need here.
Is car insurance required in Vermont?
Yes. Vermont requires all drivers to carry car insurance.
What type of insurance must you have to drive on Vermont roads?
A policy must include bodily injury liability insurance with minimum limits of $25,000 per person and $50,000 per accident, along with $10,000 in property damage liability insurance. Drivers also need uninsured/underinsured bodily injury coverage with minimum limits of $50,000 per person and $100,000 per accident, plus uninsured/underinsured property damage coverage of $10,000.
Do you need Vermont insurance to register a car in Vermont?
Yes. You must have car insurance before registering the vehicle in Vermont. While you don’t need to show proof of coverage, the form asks you to certify that your vehicle currently has liability insurance in effect as required by Vermont law.
Does insurance follow the car or the driver in Vermont?
In Vermont, car insurance generally follows the car, not the driver. So if your friend borrows your vehicle and causes a car accident, for example, your insurance acts as primary coverage.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Sources
- World Population Review. "US States - Ranked by Population 2023."
- Vermont Department of Financial Regulation. "Consumer's Guide to Auto Insurance."
- AIPSO. "Vermont Automobile Insurance Plan."
- Vermont General Assembly. "The Vermont Statutes Online."
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Kim Porter
Kim Porter is a writer and editor who's been creating personal finance content since 2010. Before transitioning to full-time freelance writing in 2018, Kim was the chief copy editor at Bankrate, a managing editor at Macmillan, and co-author of the personal finance book "Future Millionaires' Guidebook." Her work has appeared in AARP's print magazine and on sites such as U.S. News & World Report, Fortune, NextAdvisor, Credit Karma, and more. Kim loves to bake and exercise in her free time, and she plans to run a half marathon on each continent.
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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