Guide to Car Insurance in Vermont

Vermont requires car insurance as part of its financial responsibility law. The minimum insurance amounts are $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident and $10,000 in property damage liability coverage per accident.

Vermont also requires motorists to have uninsured/underinsured motorist coverage of at least $50,000 of bodily injury per person, $100,000 of bodily injury per accident and $10,000 of property damage per accident. The Insurance Research Council estimates that around 10 percent of drivers in Vermont don’t have auto insurance, so there is a real risk of being hit by another party that doesn’t have coverage.¹

Minimum coverage requirements state how much coverage you need to comply with the law. Sometimes you may need more than the minimum coverage. For example, when you lease a car, you’re required to get a minimum of $100,000 in bodily injury per person, $300,000 in bodily injury per accident, and $50,000 in property damage.

Also, when you have more assets, you might become a target for lawsuits if you don’t have enough coverage. If you’re well off, you might want liability limits as high as $250,000 in per-person bodily injury, $500,000 in per-accident bodily injury, and $100,000 in property damage.

In addition to higher liability limits, consider options that provide full coverage. Full coverage means protecting you from the costs associated with damage to your vehicle and injury to you and your passengers. Full coverage includes comprehensive coverage, collision coverage and medical payments coverage, along with liability coverage.

Comprehensive coverage pays for vehicle damage and losses due to natural disasters, theft or other incidents aside from collisions. It includes coverage for something like a tree branch or hail falling on your vehicle.

Collision coverage pays to fix your car if you hit something. The limits of both of these coverages are the fair market value of your vehicle. Medical payments coverage pays the bills to treat injuries to you and your passengers if you are at fault in an accident.

Weigh other optional coverages on top of the full coverage that you get. You may also want to consider getting rental car coverage, which pays for a rental car while your car is in the shop being repaired under a covered claim, as well as emergency roadside service and death benefits. All of these coverages are optional, but make life easier in an emergency situation.

The best Vermont car insurance policy for you will depend on your circumstances. Always speak to an agent if you have any questions or are unsure about what coverage you need.

According to our pricing data, Vermont’s average auto insurance rate is about 31 percent less expensive than the national average. Vermont residents pay only $1,336 on average for their annual auto insurance premium, whereas the national average is $1,924.

We looked at car insurance rates around the industry and found that Vermont drivers can pay as little as $324 for a minimum coverage policy, or upward of $2,521 annually for young adult drivers. Car insurance rates depend on your driving history, the car you drive and how far you travel each year, among other factors. For example, car insurance is cheaper if you have a clean driving record, and more expensive if you have a DUI or full-coverage car insurance.

Drivers can get insurance from a wide range of insurance carriers in Vermont, including these companies:

• Allstate
• Concord
• GEICO
• Nationwide
• Progressive
• State Farm
• USAA
• Vermont Mutual
• MMG Insurance

Learn how to find the cheapest company for car insurance.

Here are some common ways to reduce your auto insurance premium:

1. Ask about discounts. Each carrier offers its own discounts. Common discounts include ones for being a good student, bundling your policy with home insurance, driving safely, and being claims-free.
2. Adjust your deductibles. By raising your deductibles for comprehensive and collision coverages, you take on more financial responsibility in an accident. Insurance companies reward this by reducing the premium.
3. Lower your coverage. If you reduce liability limits and eliminate optional coverage, you’ll also reduce your premiums.

It’s essential to show proof of insurance when an officer stops you or when you’re in a traffic accident. Your proof of insurance is either a printed insurance card or a digital download available through a smartphone app.

If you cannot provide proof of insurance, an officer may assess you for a ticket of up to $500 (23 V.S.A. § 800).² This ticket counts as a traffic violation and will add a point to your driving record, potentially increasing your insurance rates. If you submit proof of insurance that was in effect at the time of the traffic stop within seven days, you will not be convicted of driving without insurance, but you may still be fined up to $100. If you cannot provide proof, your license will be suspended, and you’ll have to show proof of insurance to get it reinstated. The same penalties apply to second and third offenses (23 V.S.A. § 802).

Here is a review of the most important Vermont driving laws you need to know.

At-Fault State

In Vermont, the driver at fault in an accident is responsible for paying injury and property damage claims of the people and object(s) struck. Because Vermont is a modified comparative negligence state, a plaintiff cannot recover losses if they have an equal or greater responsibility in the accident than the defendant. To recover losses, they must be less than 50 percent at fault in an accident.

Uninsured Motorist Coverage

Vermont drivers must have uninsured motorist coverage. The minimum coverage is $50,000 in per-person injury with $100,000 in per-accident injury. You can add more coverage if you wish.

Vermont allows drivers to stack uninsured motorist coverage. When you stack coverage, you combine the uninsured motorist coverage from multiple policies within your household. Combining coverage gives you higher coverage limits and protects you financially in more serious accidents.

Let’s say you have two cars, each with a minimum of $50,000 and $100,000 in uninsured motorist limits. If there is an accident, you get the sum of both uninsured motorist coverage policies, or $100,000 and $200,000 in coverage per person and per accident, respectively.

Vermont DUI Laws

Vermont has strict laws around driving under the influence. If your blood alcohol content is at least 0.08 percent when a police officer stops you, you’ll get a DUI conviction. The DUI will stay on your record for as long as you have a Vermont license, and your license will be suspended for 90 days (23 V.S.A. § 1206).

The penalty for a DUI is a fine of up to $750 for the first offense and up to two years in prison. The penalty for a second offense is a fine of up to $1,500 with another possible two years in prison.

You will need to use an ignition interlock and get a Restricted Driver’s License (RDL) for 90 days after your first offense if you want to resume driving before the suspension is up. Following a second offense, an RDL is mandatory for 18 months, and after the third offense, it’s mandatory for three years. If the state convicts you of a fourth DUI, it will suspend your license permanently.

Seat Belt Laws

Vermont requires all car occupants to wear seat belts. If you are under the age of 18 and found without a belt on, that is a primary offense and the officer can ticket you without needing another traffic violation to stop you. If you are over 18, seat belt laws are a secondary offense, meaning the officer can’t ticket you for a seat belt infraction alone.

Each person not wearing a seat belt in the car can get a ticket. The fine for the first violation is $25, the second is $50, and the third and any subsequent violations are $100 (23 V.S.A. § 1259).

Distracted Driving Laws in Vermont

You can get a ticket if an officer catches you driving while distracted. Handheld devices are banned for all drivers, and the ban specifically forbids texting and driving.

Distracted driving is a primary offense; the first offense can cost $100 to $200, and the second within two years ranges from $250 to $500 (23 V.S.A. § 1099). A distracted driving ticket will put two points on your driving record and increase your insurance rates.

Teen Driving Laws

Drivers under the age of 18 are subject to the rules of Vermont’s Graduated License laws. These laws state that a person who is 15 or older can operate a motor vehicle as long as they hold a learner’s permit and have one of the following licensed and unimpaired drivers with them:

• A parent or guardian
• A driver education instructor
• An individual at least 25 years old

A teen driver must have a learner’s permit for at least one year before obtaining a Junior Driver’s License. A teen with a junior driver’s license cannot operate a vehicle for employment for at least one year or until they reach age 18. During the first three months of having a Junior Driver’s License, the driver must drive alone or with one of the individuals listed above. No one with a Junior Driver’s License can carry a passenger for hire.³

Statute of Limitations for Claims

There is a statute of limitations for claims in Vermont. Drivers have three years to file property claims or bodily injury claims resulting from an accident. If they file a claim after the statute of limitations passes, the insurance company will not accept their claim.

Cancellation/Non-Renewal Notification Laws

An insurance company can cancel your policy or not renew it for various reasons, including failure to pay premiums and fraud. While an insurance company cannot cancel you for a high number of claims after the first 30 days of the policy, it can choose not to renew the policy at the end of the term for a high claims volume.

If an insurance carrier chooses to cancel or not renew your policy due to failure to pay, it must give you at least 15 days’ notice. For other midterm cancellations and non-renewals, the company must give you 45 days’ written notice so that you have enough time to get coverage elsewhere.

Self-Insurance

Vermont allows you to self-insure a car by filing a bond of $115,000 with the Commissioner of Motor Vehicles. You must maintain this bond for the duration of the car registration or until you obtain other insurance (23 V.S.A. § 800).

Car Inspection Requirements

Vermont requires every owner to have their registered vehicle pass a state-approved inspection once a year. Inspection stations might be gas stations or mechanic shops. Newly registered vehicles not inspected in the state must get an inspection within 15 days of registration. The inspection site completes the inspections, provides you with a proof-of-inspection sticker, and files the completed inspection with the state.

SR-22s

An SR-22 is a financial responsibility insurance certificate confirming with the state that serious traffic violation offenders are adhering to the state’s minimum insurance requirements. Serious traffic violations include DUIs and reckless driving citations. In Vermont, drivers who need SR-22s must have them on file for three years after the offense.⁴

Defensive Driving

A defensive driver course teaches drivers how to avoid hazards and remain safe. You can complete courses online or in person. Vermont doesn’t list all the instances that require you to take a course, but you will be required to complete the Alcohol and Driving Education Program to reinstate your license following a first license suspension due to driving under the influence.

Some insurance carriers offer discounts if you complete a defensive driver course. See if your insurance company offers a discount or provides a list of approved courses.

Serious Injury and Monetary Thresholds

There is no monetary threshold to sue someone in Vermont. If you are injured in an accident, you have the right to sue the other party regardless of the injury’s value or severity.

Accident Reporting Requirements

Vermont requires you to file a police report if you are in an accident with injuries or property damage valued at $3,000 or more. You have three days to file the report or you could be fined. The Vermont Department of Motor Vehicles does not say how much the fine will be.

Price Discrimination

Vermont drivers buying auto insurance must provide carriers with their Social Security numbers. Carriers consider credit records to help determine insurance scores, which allow them to estimate how likely someone is to file a claim. Insurance prices may also vary based on sex. Carriers consider men higher risk, especially young men, so men pay more for auto insurance in Vermont, as do people with poor credit scores.

When Is a Car Declared a Total Loss?

Every Vermont insurance carrier must use a total-loss formula to determine whether a damaged vehicle is repairable. The car is totaled if its salvage value is less than the repair cost.

See below for pertinent contact information in Vermont.

Department of Motor Vehicles

You can contact your local Department of Motor Vehicles online, over the phone, or by mail. Then you can perform tasks such as registering your car, getting a license, filing an SR-22, and getting a copy of your car title.

1. When registering a vehicle for the first time, visit your local DMV with the following items:
   • Vehicle title
   • Odometer reading
   • Payment based on your vehicle make, model, and year
   • Proof of insurance
   • Form VD-119, which you can fill out beforehand to save time (https://dmv.vermont.gov/sites/dmv/files/documents/VD-119-Vehicle_Registration_Tax_Title.pdf)

   You can find your local DMV at https://dmv.vermont.gov/locations.

2. When renewing your registration, you can sign the registration renewal notice you received in the mail or simply complete the process online at https://mydmv.vermont.gov.
3. If you prefer to do it by mail, send a check or money order for the renewal amount:

4. Send the renewal notice and fee to the DMV using the envelope included with your renewal notice, which will be addressed to:
   • DMV
   • PO Box 1308
   • Williston, Vermont 05495-1308

   You should receive your new registration in the mail within 10 business days. As of June 2024, Vermont no longer requires registration stickers to be displayed on license plates, so you’ll just need a copy of the registration in your vehicle.

Get a copy of your car title in Vermont by completing the following steps:

Print and fill out the duplicate title application (https://dmv.vermont.gov/sites/dmv/files/documents/VT-004-Replacement_Title.pdf).

Pay the $22 fee.

File at your local DMV office or mail the form (along with the payment) to the DMV.
URL: https://dmv.vermont.gov/locations
Mailing address:

Vermont DMV
120 State St
Montpelier, VT 05603

You may also be able to request a duplicate title online at https://mydmv.vermont.gov by logging into the Vehicle Registration section, clicking on the vehicle you need the title for, and selecting Request Replacement Title. If this option is not available to you, you’ll need to complete the process by mail or in person.

Insurance Commissioner

You can contact Vermont’s insurance commissioner with questions or concerns about your insurance carrier.

URL: https://dfr.vermont.gov/industry/insurance

Phone: 802-828-3302

Mailing address:

89 Main St
Drawer 20
Montpelier, VT 05620-3101

Car repairs in Vermont are around 18 percent lower than the national average of $392.90 and cost an average of about $318. This total includes parts and labor.⁵

The rate of auto thefts and fatalities resulting from traffic accidents in Vermont falls well below national averages.

Motor Vehicle Theft

Vermont auto thefts are below the national average. As of 2023, the national average is about 305 stolen vehicles per 100,000 residents.⁶ Vermont only has about 160 stolen vehicles per 100,000 residents (as of the most recent state-level data from 2022; the national average was 268 stolen vehicles per 100,000 residents that year).⁷ That’s 40 to 48 percent below the national average.

The area in Vermont known for the most auto thefts is Burlington (including South Burlington), with 269 thefts per 100,000 residents, over 1.5 times the rate of the rest of the state.

Motor Vehicle Fatalities

The Insurance Institute for Highway Safety tracks traffic fatalities based on deaths per 100 million vehicle miles driven. The national average is 1.33, while Vermont is 1.07; that’s 20 percent less than the national average.⁸

Based on fatality statistics, Vermont is a safe place to drive. However, make sure that you comply with the state’s insurance liability law and purchase enough coverage to protect you financially in the worst-case scenarios.