Vermont Minimum Coverage Car Insurance: Requirements and Costs (November 2024)

Name: Vermont Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Item: Vermont Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Author: Mark Fitzpatrick

Vermont's minimum coverage liability limits are 25/50/10. The average cost of state minimum car insurance in Vermont is $317 annually, or about $26 monthly.

By Mark Fitzpatrick

Reviewed by Mark Friedlander

Edited by Myjel Guevarra

Updated: October 31, 2024

Advertising & Editorial Disclosure

Drivers in Vermont are required to carry minimum car insurance to legally operate a vehicle. The state minimum includes $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $10,000 for property damage per accident. Additionally, Vermont mandates uninsured/underinsured motorist coverage of $50,000 per person, $100,000 per accident. As an at-fault state, Vermont requires the driver responsible for an accident to bear the expenses for all damages and injuries.

The cost of minimum coverage auto insurance in Vermont is relatively manageable, with the average monthly premium around $26. Explore the cheapest car insurance in Vermont to find more competitive rates.

TABLE OF CONTENTS

Vermont Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in Vermont
Cheapest Companies in Vermont for Minimum Coverage
Add-On Coverages in Vermont
Penalties for Driving Without Insurance in Vermont
FAQ

Why Trust MoneyGeek? MoneyGeek analyzed data from Vermont Department of Insurance and Quadrant Information Services to give you the most accurate cost data for a range of Vermont drivers.

These rates reflect the cost of minimum coverage car insurance requirements in Vermont as of November 2024.

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Vermont Minimum Coverage Car Insurance Requirements

In Vermont, to drive legally, one must have minimum coverage auto insurance, which includes:

$25,000 bodily injury liability per person
$50,000 bodily injury liability per accident
$10,000 property damage liability per accident
$50,000 uninsured motorist bodily injury per person
$100,000 uninsured motorist bodily injury per accident
$10,000 uninsured/underinsured property damage coverage

Vermont follows a fault-based system when it comes to car accidents and insurance claims. This means that the person responsible for causing the accident is responsible for the damages. As a fault state, if you're at fault in an accident, your insurance premium could potentially increase to reflect the heightened risk of insuring you after the claim.

DOES VERMONT REQUIRE COLLISION AND COMPREHENSIVE COVERAGE?

In Vermont, the state does not mandate collision and comprehensive coverage; however, if you're financing or leasing a vehicle, your lender will likely require both types of coverage to protect their investment. While the state minimum coverage ensures you're legal on the road, it doesn't cover damages to your car in an accident or from other incidents like theft or weather damage. That's why finance companies insist on collision or comprehensive insurance.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you are at fault in an accident	Your injuries
Damage to another person’s property if you are at fault in an accident	Damages to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Repairs for weather-related accidents or if you were hit by an animal
	Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased

The table reflects Vermont's minimum car insurance requirements, including liability coverage. Note that specific coverage details depend on your individual policy's terms and conditions.

Average Cost of Minimum Coverage Car Insurance in Vermont

While various factors influence the cost of minimum car insurance, age remains the most common determinant. In Vermont, drivers aged 22 to 29 face the highest premiums due to their statistical likelihood of being involved in accidents.

The table below highlights the average minimum coverage cost in Vermont for different age groups, providing an easy reference to see how premiums vary.


22-29	$408	$34
30-59	$317	$26
60 +	$312	$26

Cheapest Companies for Minimum Coverage Car Insurance in Vermont

In Vermont, finding the most affordable minimum coverage auto insurance is essential, and two companies stand out as the most cost-effective options.

State Farm: $218 per year and $18 per month
Vermont Mutual: $236 per year and $20 per month

While these rates provide affordable means to meet state minimum coverage requirements, choosing a policy that aligns with your needs is important. For a more comprehensive look at your options, consider exploring the best car insurance in Vermont.

Data filtered by:Results filtered by:

Age Group:

Age Group:30-59


State Farm	$218	$18
Vermont Mutual	$236	$20
American Family	$265	$22
Allstate	$283	$24
Concord Group	$340	$28
Progressive	$349	$29
Nationwide	$402	$33
GEICO	$446	$37

Optional Add-On Coverages in Vermont

In Vermont, optional add-on coverages include uninsured/underinsured motorist coverage, collision, comprehensive, medical payments and rental reimbursement. These add-ons enhance protection beyond the state minimum coverage, covering costs that arise from various incidents, such as theft, accidents with motorists lacking sufficient insurance and rental car expenses following an accident. Understanding how much car insurance you need can help you decide on these valuable coverages.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured Motorist Coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance.	Damage to your vehicle if you are at fault or damages that exceed policy limits.
Personal Injury Protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers regardless of who's at fault.	Vehicle damage or injuries to the other driver.
Roadside Assistance	Services like towing, flat tire changes and jump-starts when your car breaks down.	Cost of parts or repairs needed after the tow.
Gap Insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen.	Vehicle depreciation or overdue loan payments.
Rental Car Reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event.	Fuel, insurance or other rental extras.
Collision Coverage	Repairs to your car after an accident, regardless of fault.	Damage due to theft, vandalism or natural disasters.
Comprehensive Coverage	Repairs to non-collision damages from events like theft, fire or hail.	Damages from a collision or personal injuries.
Towing and Labor Coverage	Towing and basic roadside-assistance labor costs at the site of your vehicle's breakdown.	More extensive repairs needed at a garage.
Custom Parts and Equipment Coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems.	Original parts that came with your vehicle.
Accidental Death Coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident.	Non-accidental death or injuries.
Classic Car Insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars.	Regular use like your daily commute.

Penalties for Driving Without Insurance in Vermont

The cost of a ticket for driving without insurance in Vermont varies depending on whether it's a first offense or a subsequent offense. Penalties may be less severe for a first-time violation, while repeated offenses can lead to harsher consequences.

Penalties for driving without valid auto insurance in Vermont include:

Fines: A monetary penalty payable to the state.
License suspension: Your driving privileges may be temporarily removed.
Vehicle registration suspension: The right to legally operate your vehicle can be withheld.
SR-22 requirement: You might need to file proof of future financial responsibility.

For repeat offenders or those involved in accidents while uninsured, additional repercussions may involve:

Community service: Mandatory participation in community work.
Jail time: Potential incarceration for more severe violations.

It's important to follow the law by maintaining at least the state minimum auto insurance coverage. Not only does this adherence protect you financially, but it also ensures you're compliant with Vermont's legal requirements, avoiding the costly and troubling consequences of being uninsured on the road.

What to Do if Your Policy Is Canceled

If your car insurance policy gets canceled in Vermont, immediately seek a new policy, but don't drive your car until you are insured to avoid penalties. Contact your insurance agent to discuss reinstatement options or seek a new insurer. The DMV monitors insurance status and will know if you're driving uninsured.

The DMV gets notifications via an electronic system when there's a lapse in insurance, so it's crucial to maintain coverage. If insurance is hard to secure due to your driving history or other factors, Vermont's Automobile Insurance Plan (VAIP) provides a way to get insurance for high-risk drivers.

For uninterrupted protection, it's essential to secure minimum coverage. Ensure you reach out to licensed insurers or explore the VAIP to stay road-legal.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in Vermont may have been canceled for a few reasons:

Non-payment of Premium: The insurance company can cancel your policy if you miss paying your premiums.
License Suspension: Losing your driver's license for any reason might lead to cancellation.
Fraud or Misrepresentation: Providing false information or hiding facts can void your policy.
Too Many Claims: Filing several claims in a short period might make you a riskier client, resulting in cancellation.
Violation of Policy Terms: Not following the rules set in your policy could lead to its termination.

FAQ: Vermont Minimum Coverage Car Insurance

We provide clear information on Vermont's minimum car insurance requirements to ensure you're legally covered when hitting the roads. Discover what types of coverage are mandatory in The Green Mountain State and the minimum limits you need to meet state regulations.

What is the minimum car insurance coverage in Vermont?

In Vermont, the minimum coverage auto insurance requirements are $25,000 for bodily injury liability per person, $50,000 for bodily injury liability per accident and $10,000 for property damage liability per accident.

The coverage also includes uninsured/underinsured motorist coverage of $50,000 per person and $100,000 per accident, with an additional $10,000 for property damage under the same provision.

Why does Vermont require minimum automobile liability coverage for motorists?

Vermont mandates minimum coverage auto insurance to ensure that motorists can cover the costs associated with injuries or damages they might cause in an accident. This financial responsibility helps protect both the driver at fault and the other parties involved from significant out-of-pocket expenses.

Do you need comprehensive insurance in Vermont?

Vermont does not require drivers to carry comprehensive insurance, but lenders might if you're financing your vehicle. Comprehensive insurance provides financial protection against events beyond collisions, such as theft, fire or weather damage. Opting for it adds a layer of security for your auto investment, particularly if your car has high value or is prone to risks not covered under minimum coverage.

What happens if you drive uninsured in Vermont?

Driving without insurance in Vermont can result in severe penalties, including fines, license suspension and your vehicle being impounded. Initial fines can range up to $500; if caught driving without insurance again, the fines increase. Always ensure you have at least state minimum coverage to avoid these consequences and stay protected on the road.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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