Car Insurance Requirements in Vermont (2024)

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

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  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.

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 cost of full-coverage car insurance in Vermont

In the state of Vermont, drivers pay an average of $152 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.

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

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:

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  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