Vermont Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

Vermont car insurance laws state that drivers must have a minimum coverage of 25/50/10 plus uninsured and underinsured motorists coverage. This coverage specifies that your car insurance policy must have $25,000 in bodily injury per person, a maximum of $50,000 per accident and $10,000 in property damage.

If your coverage does not meet these minimum state requirements, you may end up paying fines, facing penalties, or getting arrested. The minimum coverage only protects third parties in case of an accident. Individuals may need to purchase additional coverage for themselves and their vehicles.

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What Is the Minimum Car Insurance Requirement in Vermont?

How much car insurance do you need in Vermont? While purchasing car insurance in Vermont, you will need to ensure that it meets the following minimum state requirements:

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

It is not compulsory to have personal injury protection (PIP) coverage in Vermont. However, you can increase the above limits or purchase other optional insurance coverage, depending on your needs.

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What Does This Minimum Coverage Mean?

Most states, including Vermont, require you to have liability insurance, which covers third parties’ injuries and property damage in at-fault accidents. Vermont applies a 25/50/10 standard for its minimum liability coverage limit — a minimum of $25,000 per person for bodily injuries, up to $50,000 per accident and at least $10,000 in property damage coverage.

A Vermont driver's policy also needs to include uninsured and underinsured motorist coverage. This type of insurance covers the cost of your injuries if you get involved in an accident caused by someone who does not have car insurance or whose insurance does not have sufficient limits to cover your costs. The limits are $50,000 per person and $100,000 per accident.

Vermont’s car insurance requirements do not include PIP coverage. Drivers in the state are entitled to the diminished value of their car for up to three years, but Vermont does not have uninsured motorist coverage for diminished value. You cannot submit a diminished value claim if you are declared as "at fault" in the accident.

How Much Does the Minimum Car Insurance Cost in Vermont?

The amount you pay for car insurance in Vermont depends on various factors, including your ZIP code, age, credit score, driving record and insurance company.

Based on MoneyGeek's research, the cheapest provider of the minimum car insurance coverage in the state is USAA, at $160 per year. However, USAA policies are limited to current and former military members, along with their families. The second-cheapest provider is Vermont Mutual, with an average annual cost of $206.

Cheapest Minimum Liability Car Insurance in Vermont

Cheapest Minimum Car Insurance in Vermont
  • Company
    Annually
    Monthly
  • 1.
    $160
    $13
  • 2.
    Vermont Mutual
    $206
    $17
  • 3.
    $242
    $20
  • 4.
    $346
    $29
  • 5.
    Concord Group
    $355
    $30

These prices are only estimates based on rates for an average Vermont driver and should not be used to compare insurance prices.

MoneyGeek analyzed the average cost of car insurance in Vermont for a state minimum limit of 25/50/10 and uninsured/underinsured motorist coverage. We applied data for a 40-year-old male 2010 Toyota Camry driver with a clean driving record and good credit score.

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What Is the Minimum Car Insurance Requirement in Vermont While Leasing a Car?

Although your policy only needs to meet the Vermont minimum car insurance requirements, leasing companies may propose specific criteria for leases. Most companies will need you to have a full coverage car insurance policy with at least 100/300/50 as the limits.

Contact your leasing company to determine whether their minimum car insurance coverage requirements match your leasing terms to fully understand if you can meet the rest of the terms of the agreement.

If you are not sure of the car insurance coverage amount to purchase, consider MoneyGeek’s recommendation of at least 50/100/50 full coverage car insurance. Vermont drivers will also need to purchase uninsured/underinsured motorist coverage to cover injuries or property damage for accidents with drivers who do not have car insurance. According to the Insurance Information Institute, 8.8% of the drivers in Vermont are uninsured.

Penalties for Driving Without Car Insurance in Vermont

Car insurance is not optional in Vermont, and driving without a car insurance policy can result in various fines and penalties. You should always have proof of insurance in your vehicle and present it to a law enforcement officer when needed, either in printed or electronic form.

To reinstate your suspended license or vehicle registration, you will need to purchase car insurance and present proof at the traffic court. You will also need to carry SR-22 insurance for three years and pay the reinstatement fee.

Frequently Asked Questions About Car Insurance in Vermont

For drivers looking for coverage in The Green Mountain State, MoneyGeek covers some commonly asked questions about car insurance in Vermont.

Learn More About Car Insurance

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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