Vermont Auto Insurance

Last updated : August 2024
Published By : Direct Auto

Vermont is one of the smallest states in terms of land area and population, but there’s so much to see and do. Whether you’re driving to work in the Burlington area or cruising down a quiet road to enjoy the stunning fall foliage, affordable auto insurance coverage can help protect you, your loved ones and your vehicle on every journey. So, take a few minutes to learn about cheap car insurance in Vermont, including which coverages are mandatory and which ones are optional.

Vermont Car Insurance Laws

Do you have to have car insurance in Vermont?

Vermont requires all vehicles to be covered by a car insurance policy that satisfies all state insurance laws. Vermont auto insurance policies must at least meet the state’s minimum liability coverage limits, typically expressed as three numbers representing thousands of dollars. For example, the liability limits in Vermont are 25/50/10, as shown below under Vermont Minimum Car Insurance Requirements.

In addition to liability coverage, Vermont insurance policies must include uninsured/underinsured motorist bodily injury coverage and uninsured/underinsured motorist property damage coverage.

Vermont Minimum Car Insurance Requirements

Wondering what your insurance policy needs to fulfill Vermont’s insurance requirements? Here’s a quick breakdown by coverage type.

Coverages

Is It Required by Law?

Bodily Injury Liability Coverage provides financial protection if you cause an accident that injures another person. It helps pay for their medical expenses and your legal services (if necessary).

Yes. $25,000 bodily injury per person/$50,000 bodily injury per accident.

Property Damage Liability Coverage helps pay to repair or replace other people’s property that is damaged in an accident you cause. It typically involves damage to another vehicle, but it could help pay to repair a house, fence, mailbox and more.

Yes. $10,000 property damage per accident.

Uninsured/Underinsured Motorist Coverage (UM/UIM) helps pay for your medical bills and related expenses if the other driver has no coverage (UM), insufficient coverage (UIM) or can’t be identified due to hit and run. In some states, UM/UIM can also help pay for property damage.

Yes. $50,000 UM/UIM bodily injury per person. $100,000 UM/UIM bodily injury per accident. $10,000 UM/UIM property damage per accident.

Medical Payments Coverage (Med Pay) helps pay for your medical and related expenses stemming from an accident, regardless of fault.

Not required.

Collision Coverage helps pay to repair or replace your vehicle if you collide with another car, tree, guardrail or another object, regardless of fault.

Not required.1

Comprehensive Coverage helps pay to repair or replace your vehicle if it’s damaged by something other than a collision, like fire, floodwaters, falling branches, vandalism or contact with an animal.

Not required.1


IMPORTANT NOTE: While purchasing liability coverage and UM/UIM ensures you satisfy Vermont’s laws, it doesn’t protect you or your vehicle in every circumstance. You would need to add additional coverage, like comprehensive and collision, to protect yourself and your vehicle more fully.

1Your lender may require these coverages if you lease or finance your vehicle.

Are there additional coverage options?

For greater peace of mind, Vermont drivers may have access to add-on services and other coverages depending on the insurer:

Vermont Proof of Financial Responsibility and Penalties

What if I don't meet Vermont’s minimum car insurance requirements?

Vermont takes a strict stance on vehicle owners who don’t meet insurance requirements. Anyone who is caught driving without insurance or allowing their vehicle to be driven without coverage faces a civil traffic violation that could come with a fine, points against their license/driving record and SR-22 requirements.

Penalties for Driving with a Suspended License in Vermont

Driving without a valid license can lead to harsh penalties in Vermont. If you’re caught operating a vehicle while suspended, revoked or otherwise unlicensed, the National Conference of State Legislatures says you could be facing a steep fine, potential jail time and possible seizure of your license plate.

SR-22 Insurance in Vermont

Some states require high-risk drivers to keep an SR-22 (also known as a certificate of financial responsibility) on file with the state verifying they have purchased auto insurance coverage that satisfies the state’s minimum coverage requirements. Drivers might be required to keep one on file in Vermont if:

  • They are caught driving without insurance.
  • They were convicted of a DUI/DWI.
  • They’re guilty of other driving or insurance related offenses.

High-Risk Auto Insurance in Vermont

Many individuals do not have a perfect driving record, and after a certain number of violations or a serious enough violation, drivers can be considered a major risk to insure. Some insurance companies won’t insure high-risk drivers, but non-standard insurance (another name for high-risk auto insurance) is often available elsewhere to provide financial protection for these drivers. 

Where can I find the cheapest car insurance rates in Vermont?

Car insurance costs vary depending on a number of factors, including:

  • The amount and type of coverage you choose
  • The year, make and model of the vehicle you drive
  • How much you drive, where you drive and where you live
  • Your demographics
  • Your driving record
  • Your credit history

Where can I find the cheapest car insurance rates in Vermont?

*Roadside Assistance is not insurance and is administered through Nation Safe Drivers, Boca Raton, FL. Not all benefits available in all states.

**The “Direct Auto Insurance” brand is used by insurers in the National General Group, Winston-Salem, NC to describe their direct-to-consumer auto insurance programs. Direct Auto Insurance branded policies are produced by Direct General Insurance Agency, Inc. dba “Direct Auto Insurance” and by National General Insurance Marketing Inc.

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