Vermont Car Insurance Laws and Requirements (2023)

Vermont law dictates the minimum requirements for insurance coverage that all drivers must carry. All drivers in Vermont must hold 25/50/10 in liability coverage and 50/100/10 in uninsured motorist coverage. Additionally, drivers can pick from a long list of additional coverages for added protection.

Minimum Car Insurance Requirements in Vermont

The minimum car insurance requirements in Vermont^[1] are:

• $25,000 for bodily injury liability per person

• $50,000 for bodily injury liability per accident

• $10,000 for property damage liability per accident

• $50,000 for uninsured and underinsured motorist bodily injury liability per person

• $100,000 for uninsured and underinsured motorist bodily injury liability per accident

• $10,000 for uninsured and underinsured motorist property damage liability per accident

Vermont car insurance operates on a standard at-fault system typical of most U.S. states. State law also requires drivers to carry uninsured and underinsured coverage. Uninsured motorist property damage coverage is issued with a $150 deductible. All drivers are required to provide proof of insurance at the request of law enforcement. You can do this with your smartphone.

Bodily Injury Liability

Bodily injury liability is part of your liability car insurance coverage. If you cause an accident, this coverage will help cover the other party’s medical expenses. This type of coverage will not cover your own medical expenses for injuries sustained in a car accident you caused. Bodily injury liability coverage is required in Vermont.

Property Damage Liability

Property damage liability is the other half of your liability car insurance. It covers repair costs and damage expenses to the other cars involved in an accident you caused. This coverage does not cover damage to your own car in an accident you were at fault for. Property damage liability coverage is required in Vermont.

Uninsured/Underinsured Motorist Coverage

If an uninsured (or underinsured) driver causes an accident and you suffer bodily injury, uninsured motorist coverage will cover your medical expenses. If the at-fault driver surpasses their bodily injury liability coverage limits, your underinsured motorist coverage will cover the rest of your medical expenses. This coverage is required in Vermont.

Is state minimum car insurance enough in Vermont?

The minimum required car insurance coverage in Vermont provides drivers with a solid foundation of auto insurance coverage, but it may not be enough for everyone. The minimum limits on bodily injury liability are not high enough to protect you from the medical costs that result from most serious car accidents.

Vermont law requires drivers to carry underinsured and uninsured motorist coverage, and this goes a long way toward protecting your vehicle and covering potential medical costs from an accident with an uninsured driver. Experts generally advise drivers to carry 100/300 liability insurance, which is significantly higher than Vermont’s minimum limits.

If you’re leasing your vehicle or took out a loan to buy it, your lenders or lessor will have additional coverage requirements for your auto insurance policy—usually full coverage, and possibly other coverage options, some of which are detailed below.

Optional Car Insurance Coverage for Vermont

Vermont drivers who want to be protected in any situation should consider bolstering the minimum car insurance coverage with the following supplemental car insurance coverages:

Collision Coverage

Collision coverage covers damages to your car after a collision with another vehicle or object. If your vehicle is a total loss, collision coverage will reimburse you for the actual cash value of your vehicle. This is a great addition to the required property damage liability coverage in Vermont, which applies only to the damages to the other driver’s vehicle.

Comprehensive Coverage

Complementing your collision coverage, comprehensive insurance covers damage to your vehicle that occurs during an event that is not a collision with another vehicle or object. This may apply in situations of vandalism, theft, weather damage, or a run-in with an animal. Adding comprehensive and collision coverage together creates a full-coverage car insurance policy.

Other Supplemental Coverage

Vermont drivers can also purchase medical payments coverage to ensure that their auto insurance policy will protect their medical costs in the event of an accident, whether or not they’re at fault. If you have a high deductible on your health insurance or a difficult health insurance company, this can provide you peace of mind on the road.

Other popular coverages include rental reimbursement, which gets you back on the road while your car is being repaired from a covered loss. In rural Vermont, where cars are often a necessity for groceries and daily living, this can be really helpful. If you don’t have a roadside assistance service membership like AAA, most auto insurance companies offer it for cheap.

Penalties for Driving Uninsured in Vermont

It is illegal to drive in Vermont without the minimum car insurance coverage. If law enforcement asks for your proof of insurance and you can’t provide it, you will be issued a fine of $500 or less ($100 or less if you later provide proof of insurance within seven business days), and you could be imprisoned for up to a year. You’ll also be cited with a traffic violation.

• You’ll be issued a citation for a traffic violation.

• You’ll be fined no more than $500.

• You could be imprisoned for up to one year.

Minimum Requirements for High-Risk Drivers in Vermont

If your driving record piles up with serious violations, or even one instance of driving with an expired or revoked driver’s license, the Vermont Department of Motor Vehicles (DMV) may require your auto insurance company to prove to the state that you have adequate liability insurance.

Your insurance company does this by providing an SR-22 certificate to the insurance commissioner. You don’t need more insurance beyond minimum coverage, but your insurance company will likely consider you high-risk based on your driving record, and your insurance costs will go up. Vermont SR-22 requirements expire three years from the day of the incident^[2].

More Information for High-Risk Drivers in Vermont

DUI Insurance in Vermont

SR-22 Insurance in Vermont

Cheapest Minimum Car Insurance in Vermont

Car insurance companies weigh different factors to determine what to quote drivers on their car insurance policies. Minimum coverage generally means lower car insurance rates. It also means low coverage limits, which may cost you if you’re ever involved in an accident. Here are the cheapest car insurance quotes for minimum coverage in Vermont.

How to Find Cheap Car Insurance in Vermont

Lots of insurance companies offer Vermont auto insurance. How do you know which has the best deal for you? Insurify helps you compare car insurance quotes on one simple and free platform. You can do the same for other types of insurance, including homeowners and life insurance. Give Insurify a try to make sure your premiums are low as can be.