Vermont car insurance requirements and laws

Minimum car insurance requirements

Vermont law (23 V.S.A. § 800) forbids driving or letting your car be driven without a liability policy or bond meeting the state minimums. Vermont's uninsured motorist requirement is unusual: the required UM/UIM limits are higher than the required liability limits. Under 23 V.S.A. § 941, every policy must include uninsured and underinsured motorist coverage for injuries and for vehicle damage.

If your liability limits are higher than 50/100, your UM/UIM limits must match them unless you direct otherwise. The $150 property damage deductible doesn't apply if you have other coverage for damage to your car. In that case, UM pays your collision deductible.

What the minimums mean in practice: say you slide through an icy intersection in Burlington and hit a car. The driver has $40,000 in medical bills and the car needs $16,000 in repairs. Your liability coverage pays $25,000 toward the injuries and only $10,000 toward the car. The other driver can pursue you for $15,000 in medical costs, $6,000 in repairs, plus pain and suffering. A $10,000 property damage limit is very low for today's cars (state minimum vs full coverage: which do you need?). Check limits with the liability limits decoder.

Fault system and what it means after a crash

Vermont is an at-fault state. The at-fault driver's insurer pays the other side's injuries and property damage, and there is no threshold on lawsuits. Vermont uses modified comparative negligence (12 V.S.A. § 1036). You can recover if your negligence was not greater than the total negligence of the defendants, and your damages are reduced by your share. That works out to a 51% bar. See comparative vs contributory negligence and how fault is determined in a car accident.

Optional coverage worth considering here

• Higher property damage liability. At $10,000, the minimum won't replace most vehicles. Moving to $50,000 or $100,000 usually costs little (how much liability coverage do you need?).
• Higher UM/UIM. Because it matches your liability limits, raising liability improves your own protection too (uninsured and underinsured motorist coverage explained).
• Collision and comprehensive. Snow, ice, deer and moose collisions and falling trees are routine Vermont claims (hail, flood and storm damage: filing a comprehensive claim).
• Medical payments and roadside assistance for winter breakdowns on rural roads.

What drives rates in Vermont

Vermont is one of the less expensive states. The NAIC's average expenditure was $893 in 2023, compared with $1,281.60 nationally. Low traffic density and few large cities keep liability claims down. Long winters, mountain roads and wildlife strikes push up collision and comprehensive claims. Burlington-area drivers usually pay more than rural drivers. The Insurance Research Council estimated 11.8% of Vermont drivers were uninsured in 2023, below the national 15.4%. Your record, the car you drive and your credit-based insurance score still drive your individual price.

Penalties for driving uninsured

Driving without required coverage is a traffic violation in Vermont, carrying a civil penalty of up to $500 (23 V.S.A. § 800). Failing to carry proof of insurance while driving can bring a civil penalty of up to $100. Proof on a phone or other portable electronic device is acceptable. The Commissioner of Motor Vehicles may also require proof of insurance before vehicle inspections. If you're involved in a crash while uninsured, or convicted of certain serious offenses, the DMV can require proof of future financial responsibility and suspend your license until you provide it. See penalties for driving without insurance.

SR-22 and high-risk drivers

Under 23 V.S.A. § 801, the Commissioner requires proof of financial responsibility, commonly an SR-22, from drivers convicted of DUI or of driving after suspension or revocation. It is also required after a fatal crash involving careless or reckless driving, after leaving the scene of an injury crash, and after unauthorized use of a vehicle. The proof must show at least 25/50/10. If you don't file it within 20 days of notice, your license is suspended until you do (§ 802). Ask the DMV how long your filing must stay in force, and compare quotes (SR-22 insurance explained, high-risk car insurance: options when insurers say no).

Insurers with a strong presence in Vermont

N&D Union Mutual Insurance Group includes Union Mutual, a regional mutual based at 139 State Street in Montpelier that sells personal auto insurance through New England agents. State Farm, Progressive, GEICO, Allstate and Travelers compete statewide. Independent agents also place drivers with other New England regional mutuals (regional car insurers: when smaller carriers can beat the giants).

Where to get help

The Vermont Department of Financial Regulation takes insurance consumer inquiries and complaints at 800-964-1784 (802-828-3302 locally). The office is at 89 Main Street, Montpelier, VT 05620-3101, and online at dfr.vermont.gov. It can explain coverage, investigate claim handling and take complaints about insurers and agents (how to file a complaint against a car insurance company). License suspensions and financial responsibility filings are handled by the Vermont Department of Motor Vehicles. Vermont generally allows three years to sue for injuries or property damage (12 V.S.A. § 512; see statutes of limitations for car accident claims). Ask a licensed attorney about your claim.