How Much Is Car Insurance in Vermont? (2023)

Several factors affect auto insurance rates, including company, age, driving history, credit score and coverage level. In Vermont, for example, a full coverage policy from State Farm costs an average of $493 per year, while Progressive charges $859 per year. Meanwhile, the cheapest rate available to a 25-year-old is $611 per year, but the most affordable option for a 65-year-old is $449 per year.

For Vermont drivers, the average cost of car insurance is $664 per year for a full coverage policy. However, coverage level and driving record can significantly affect how much you will be paying. If you have an at-fault accident on your record, you can expect to pay around $979 annually for a full coverage policy, while rates increase to around $1,367 per year after a DUI. Drivers with speeding violations pay an average of $828 per year.

Vermont is the second-cheapest state in the country for a full coverage policy, with a state average ($664) far below the national average of $1,054. Affordable rates in this state may be attributed to factors such as reduced traffic congestion, low population density, more cost-effective insurance providers and low vehicle theft rates. If your car insurance rates are expensive, it could be due to your age or driving record.

Car insurance rates can vary greatly from one provider to the next, so the average cost of auto insurance in Vermont can sometimes be misleading. State Farm offers the cheapest car insurance in Vermont at just $198 per year for minimum coverage ($493 for full coverage). Nationwide is the most expensive for minimum coverage, with an annual rate of $370 ($766 for full coverage). Generally, full coverage policies in Vermont are more expensive than minimum coverage or cheap liability-only policies, but shopping around is a great way to find cheap full coverage policies.

A policy with the state-mandated minimum coverage levels in Vermont costs an average of $265 per year, while a policy with the most coverage possible costs an average of $765 per year. You can expect your costs to increase as you raise your liability limits. In addition, buying a full coverage policy, which includes comprehensive and collision insurance, will cost hundreds of dollars more per year. However, you can lower your costs slightly by choosing a higher deductible.

A minimum coverage policy is the cheapest car insurance you can buy, although the coverage amounts will vary by state. Minimum coverage policies in Vermont include uninsured motorist insurance in addition to liability insurance, but they are still the third-cheapest in the country on average. Minimum coverage policies do not include comprehensive and collision insurance and only offer the lowest possible liability limits.

Insurers typically refer to liability limits in a shortened way, such as 100/300/100. This corresponds to the following:

• $100,000 in bodily injury liability insurance per person
• $300,000 in bodily injury liability insurance per accident
• $100,000 in property damage liability insurance per accident

Most insurers offer up to 300/500/300 in liability insurance, which only covers damages and injuries to others. Opting for a full coverage policy adds both comprehensive and collision coverage to your policy, which covers damage to your own vehicle.

While age plays a significant role in determining car insurance costs, this is mainly the case for very young or inexperienced drivers in Vermont and other states.

The following are the average full coverage costs in Vermont for the three primary age groups:

• 22–29: $860 per year
• 30–59: $664 per year
• 60+: $643 per year

Car insurance rates typically remain fairly consistent between the ages of 30 and 59, decreasing slightly for those in their 60s and older. Drivers in their 20s usually pay higher rates. In addition, car insurance rates for new drivers over 30 may be similar to those for drivers in their 20s.

Car insurance will be much more costly for teens in Vermont than for the average adult — a 16-year-old male can expect to pay around $1,754 per year for a family plan and around $3,262 per year for an individual plan. Note that in most cases, teens are not legally allowed to purchase their own policy without a parent or guardian's consent to co-sign.

Rates usually decrease drastically as teens age. A family plan for a 19-year-old male in Vermont costs around $1,445 per year, while 22-year-olds pay around $1,092 annually. Female teen drivers often pay less for car insurance than males — in Vermont, they pay an average of $252 less per year. Rates also vary among insurers, so some companies may offer more affordable car insurance for teens in Vermont than others.

For drivers in Vermont, the cost of insuring an older car is around $699 per year, while it costs around $903 per year to insure a new car — that's a 29.09% increase. Insurers often charge higher rates for new cars because of their higher actual cash value (ACV), risk of theft and costly repairs. Your car's ACV can impact insurance rates because it determines how much you might be paid if your car is totaled. If you have a new car with a higher ACV, it may be wise to invest in a full coverage policy to cover damages it may sustain.

Your driving record can greatly impact your insurance premium, as shown below:

• Clean driving record: $664 per year
• Speeding ticket: $828 per year
• At-fault accident: $979 per year
• DUI: $1,367 per year

Typically, rates for drivers with minor infractions are lower than rates for drivers with more serious violations like a DUI. However, some cheap insurers in Vermont for bad records may not charge as much for violations as others, so it's a good idea to shop around.

In Vermont, your credit score can also affect the cost of car insurance. The average rate for a driver with excellent credit is $559 per year, while the rate for a driver with poor credit is about $1,125 per year.

• Excellent: $559 per year
• Good: $647 per year
• Fair: $773 per year
• Below fair: $904 per year
• Poor: $1,125 per year

Since different companies may treat lower scores differently, we suggest doing your research and shopping around to find the most affordable insurers in Vermont for poor credit.

To ensure that you’re getting the best coverage at the lowest rate and help guide your decision-making process, here are answers to some frequently asked questions about car insurance costs in Vermont. Remember that rates may vary depending on personal details and other factors, so do your research thoroughly before making any commitments.