Is Car Insurance Required in Vermont?

Yes. Drivers need to have car insurance in Vermont. Your policy should have at least 25/50/10 as the liability coverage. Additionally, it should have uninsured and underinsured coverage. Being caught without car insurance in Vermont can lead to penalties and fines, including the suspension of your license.

Do You Need Car Insurance to Register a Car in Vermont?

Yes. You need valid insurance coverage to register your car in Vermont and should present this alongside proof of ownership of the car during registration.

What Is “Basic” Car Insurance in Vermont?

Basic car insurance in Vermont comprises the state minimum of 25/50/10, plus uninsured and underinsured motorist insurance coverage. Your policy must have at least $25,000 in bodily injury per person, and up to $50,000 per accident and $10,000 in property damage. If your policy does not meet these requirements, you risk being fined.

Does Insurance Follow the Car or Driver in Vermont?

Insurance follows either the car or the driver in Vermont, based on the insurer and the type of policy. Typically, car insurance follows the car, meaning that the owner will be liable for any injuries and property damage in case of an accident, regardless of who is driving their vehicle. However, PIP insurance and medical costs will need to be covered by the driver. That means you will be responsible for the insurance liabilities of a rented vehicle if you used your policy to rent the car.

Can You Get Car Insurance Without a License in Vermont?

In Vermont, car insurance companies need your license before providing your policy. Insurers use your license information to check your driving history and determine your premiums. Although this is not a mandate from the state, some companies may hesitate to process your insurance application until you provide your license. However, if you are the car owner and allow someone else to drive the car, you can use their license to get the insurance.

Is Vermont a No-Fault State, and What Does This Mean?

No. Vermont is not a no-fault state. If you cause an accident, you will need to cover the bodily injury and property damage costs for the third parties involved.

Is PIP Coverage Required in Vermont?

Your basic car insurance policy does not need to include PIP coverage in Vermont. This insurance covers you and your passengers in accident-related injuries.

Does Vermont Require Uninsured Motorist Insurance?

Uninsured motorist coverage is mandatory in Vermont. This insurance covers you and other passengers if you are involved in a collision with an uninsured motorist. The limits in Vermont are $50,000 for bodily injury per person and a maximum of $100,000 per accident.

Does Vermont Allow for Diminished Value Compensation After an Accident?

Yes. Drivers in Vermont can file diminished value claims in accidents where the third party is at fault for up to three years. There is no uninsured motorist coverage for the diminished value.

How Do Car Insurance Requirements Change After a DUI in Vermont?

Vermont has a set of laws for driving under the influence, and breaking these laws can lead to severe consequences, including the suspension of your license. DUIs often make you a high-risk driver, and insurers will likely charge you more than Vermont residents with good driving records.

What Is CARCO Inspection, and Is it Required?

CARCO inspection documents the mileage, accessories and general conditions of your car. The inspection process lasts about 15 minutes. However, Vermont is not among the states that need CARCO inspection.

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.

TABLE OF CONTENTS

Minimum Car Insurance Requirements in Vermont
How Much Does Minimum Car Insurance Cost?
Penalties for Driving Without Insurance in Vermont
FAQs

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.

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 car insurance provider in Vermont for minimum coverage 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.

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.

MoneyGeek also ranked the best car insurance companies in Vermont for those who want strong service and affordable rates.

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 Mark Fitzpatrick

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark 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 economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.

sources

Insurance Information Institute. "2020 Insurance Fact Book." Accessed September 18, 2021.
Insurance Information Institute. "Background on: Compulsory Auto/Uninsured Motorists." Accessed September 18, 2021.
DMV.org. "Vermont Car Insurance - Quotes, Coverage & Requirements." Accessed September 18, 2021.
CollisionClaims.org. "Vermont Diminished Value." Accessed September 18, 2021.
Kelley Blue Book. "Penalties for Driving without Car Insurance by State." Accessed September 18, 2021.

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