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What are state minimums for car insurance in Vermont?

Things to remember...

  • Vermont drivers may face legal penalties if they do not have the minimum amount of car insurance required by law at all times
  • Many drivers in Vermont may benefit from purchasing more than the state’s minimum required liability auto insurance
  • Vermont drivers should understand the important differences between various coverage types before shopping for a new policy
  • Vermont’s car insurance coverage types, as well as coverage limits, should be carefully selected

Vermont is one of many states that requires its drivers to purchase at least a minimum amount of car insurance.

This state has a financial responsibility law that makes drivers take financial responsibility for any damages they cause to other people while they are driving their vehicle. Liability insurance gives you a way to pay for those damages.

The state’s car insurance requirements include liability insurance, but many drivers prefer to purchase more than the amount of coverage that is legally required in Vermont to enjoy added benefits.

Compare coverage options today by using our free rate comparison tool above.

Table of Contents

How to Read Car Insurance Requirements

Before you start shopping around for new car insurance in Vermont, you need to understand the differences in coverage types available so that you can make an educated buying decision. These are some of the primary coverage options available to you:

  • Bodily Injury Liability – This is a required type of auto coverage in Vermont, and it pays for medical expenses if you cause injuries to other parties while driving your car.
  • Personal Injury Protection (PIP) / Medical Payments – This is an optional coverage type in Vermont, and it pays for your own medical expenses if you are injured in an accident as well as any passengers in your vehicle.
  • Property Damage Liability – This is a required type of car coverage in this state, and it pays for vehicle repairs and other types of property repairs if you damage someone else’s property while driving.
  • Collision – This is an optional auto insurance coverage type in Vermont, and it pays for your vehicle repairs or a replacement if you are involved in a collision. It does not offer benefits for other types of losses.
  • Comprehensive – This is an optional coverage type for Vermont drivers to consider, and it pays for vehicle repairs or a replacement for a wide range of damaging events, including weather-related damage, hitting an animal, thefts, and more.
  • Uninsured and Underinsured Motorist Coverage – With this type of coverage, you may receive benefits if you are involved in a car accident with another motorist who does not have insurance as required or who does not have enough coverage to pay for all of the expenses they caused.

When you read an insurance policy, you will see that each of the included coverage types is listed, and a maximum coverage limit is shown for each coverage type.

For example, you may have $25,000 in property damage coverage, and this means that the policy will pay out up to $25,000 in benefits for any property damage you cause. Any expenses beyond the coverage limits are your responsibility.

You should be aware that some auto lenders have unique car insurance requirements as well. If you have a car loan, check with your lender to determine what types of car insurance you need to buy to comply with the terms of your loan.

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Minimum Coverage for Vermont

While many Vermont drivers choose to purchase more than the state’s minimum required coverage, they are still all required to at least purchase this amount of coverage. The state’s minimum coverage requirements include:

  • $25,000 for bodily injury liability per person
  • $50,000 for total bodily injury liability per accident
  • $10,000 for property damage liability per accident

You should be aware that there may be unique laws regarding auto insurance in Vermont for stored or unregistered cars. Before you spend time shopping for new rates or spend money buying coverage, carefully research whether or not coverage is needed for your car.

Penalties for Driving Without Insurance in Vermont

Many states issue monetary fines for drivers who do not comply with auto insurance requirements, but Vermont takes a stricter stance.

The state compares its registered vehicles list against an insurance database, and it will suspend your license if you are caught driving without insurance at any time.

Be aware that the license suspension will remain in full force until you provide proof of car insurance coverage to the state again.

Minimum Requirement vs. Recommended Coverage

Before you buy auto insurance in Vermont, you need to determine how much coverage you need. Some drivers believe that they only need to purchase the minimum amount of auto insurance required by law, but this is not true in many cases.

Understand that the state’s liability auto insurance requirements do not provide you with any benefits related to repairing your own vehicle or paying for your own medical expenses if you are in an accident or another related event.

More than that, be aware that you are legally responsible for all damages that you cause, and there is a good chance that the damages you cause may exceed the benefits offered by a standard auto insurance policy.

For example, the standard liability coverage includes only $10,000 for vehicle repairs to someone else’s car if you cause the accident. If you hit a car that has a $25,000 replacement value, you may have to pay the difference of $15,000 out of your own pocket.

Buying Insurance in Vermont

Buying car insurance in Vermont is easy to do when you request quotes for coverage online. After you have decided how much coverage you want to buy for each type of auto insurance available, you can find a few reputable auto insurance companies to reach out to for quotes.

Remember that providers can vary based on their claims process, their customer service rating, their financial strength, and more.

Drivers should be properly insured at all times. Therefore, if you have plans to replace your existing coverage with new coverage, ensure that you bind your new coverage before canceling an old policy.

Shopping for new car insurance rates approximately every six months is a smart idea.

Insurance rates can fluctuate from provider to provider, and many of the factors that are reviewed to determine your insurance rates can also fluctuate.

When you compare rates every six months, you can easily keep your coverage types and limits updated according to your unique needs, and you can also identify which provider offers the lowest rates at the time.

Compare rates right here by using our free quote tool below.


  1. http://www.iii.org/article/what-covered-basic-auto-insurance-policy
  2. http://www.iii.org/automobile-financial-responsibility-limits-and-enforcement-by-state
  3. http://www.360financialliteracy.org/Topics/Insurance/Cars-Auto-Insurance/State-by-State-Minimum-Coverage-Requirements
  4. http://dmv.vermont.gov/enforcement-and-safety/laws/insurance
  5. http://www.iii.org/article/eight-auto-insurance-myths


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