Car Insurance Requirements in Vermont (2025)
In Vermont, drivers are required to carry liability insurance with limits of 25/50/10. Drivers also need uninsured/underinsured coverage with 50/100/10 limits.
Excellent
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
Vermont has one of the smallest populations in the U.S., so you’re more likely to encounter rural wooded roads than congested highways.1 But drivers in the Green Mountain State still have to deal with potential dangers like collisions with wildlife, unpaved roads, and winter conditions that make navigation difficult.
Drivers in Vermont are required to buy two different types of car insurance: liability coverage and uninsured/underinsured motorist coverage.
Here’s what you should know about auto insurance requirements in Vermont.
Vermont car insurance requirements
Auto insurance policies in Vermont must include the following types of coverages with these minimum limits:
Bodily injury liability: $25,000 per person and $50,000 per accident
Property damage liability: $10,000 per accident
Uninsured/underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
Uninsured/underinsured property damage: $10,000 per accident2
Bodily injury liability
Bodily injury liability insurance protects you from legal liability if you cause a car accident that unintentionally injures or kills someone. The coverage pays for the other driver’s medical bills, but it doesn’t cover you or your passengers’ injuries.
In Vermont, your bodily injury liability policy needs to have coverage limits of at least $25,000 per person and $50,000 per accident.
Property damage liability
Property damage liability coverage pays to repair or replace another person’s property if you, a household member, or someone else driving your car causes accidental damage to another person’s vehicle or other property.
Your Vermont property damage liability policy needs to have at least $10,000 per accident in coverage.
Uninsured/underinsured bodily injury
Uninsured motorist coverage pays for your injuries if you have an accident with an uninsured driver or you’re the victim of a hit-and-run. Underinsured coverage applies if another person causes an accident and has insurance but their limits aren’t high enough to cover your bills.
The minimum policy limits in Vermont for uninsured/underinsured motorist bodily injury coverage are $50,000 per person and $100,000 per accident.
Uninsured/underinsured property damage
You must also carry $10,000 in uninsured/underinsured property damage coverage. You won’t be able to raise your limits here, since the maximum amount you can purchase is $10,000. This coverage is subject to a $150 deductible in Vermont.
Vermont Automobile Insurance Plan
Do you need more than state-minimum coverage in Vermont?
In short, no. Vermont residents aren’t legally required to buy insurance beyond the state-mandated minimum coverage.
However, around three-quarters of drivers in the U.S. choose to purchase collision and comprehensive insurance, which are optional coverages. Collision insurance pays for your vehicle repairs following an auto accident, and comprehensive coverage kicks in when you’re involved in a non-collision event like vandalism or theft.
Lenders typically require borrowers to purchase collision and comprehensive coverage when leasing or financing a car. But even if your car is paid off, you may decide to buy full-coverage insurance if you think you’d struggle to pay for repairs following an incident.
Keep in Mind
You might also choose to increase your policy limits for the state’s required coverages.
“If you have a major financial asset to protect, such as a house, you probably ought to buy more coverage if you can afford it,” according to the Vermont Department of Financial Regulation.
The cost of liability-only car insurance in Vermont
Vermont drivers pay $64 per month, on average, for a liability-only policy. This minimum coverage includes liability car insurance and uninsured/underinsured motorist coverage. Liability insurance pays for the other driver’s medical costs and property damage when you’re at fault in an accident.
Uninsured/underinsured coverage pays your costs if someone else causes an accident but flees the scene or lacks enough insurance to cover all your bills.
Because minimum-coverage insurance policies are limited, they’re generally less expensive than full-coverage policies.
Here are average monthly quotes from several top insurers in the state.
The cost of full-coverage car insurance in Vermont
In the state of Vermont, drivers pay an average of $142 per month for full-coverage car insurance.
True to its name, full-coverage car insurance carries more coverage than a liability-only policy. Full coverage typically includes liability insurance, uninsured/underinsured insurance, and both collision and comprehensive coverages that can help pay for repairs to your own property and medical costs for you and your passengers.
Here are average monthly quotes from several top insurance companies in the state.
Penalties for driving without proof of insurance in Vermont
You must have car insurance before registering your vehicle with the Vermont Department of Motor Vehicles. The Vermont DMV doesn’t keep proof of coverage on file, but you’ll need to certify that your insurance meets the legal requirement.4 Law enforcement officers can ask for proof of insurance when they pull you over or at traffic safety checkpoints.
If you’re caught driving without insurance in Vermont, the penalties may include:
A fine of $100 if you can’t show proof of insurance
A fine of $500 for not having a car insurance policy with minimum liability coverage
Driver’s license suspension if you can’t provide proof of insurance within 20 days of being asked
An $82 fee to reinstate your driving privileges
Optional car insurance coverages to consider
If you want to enhance your car insurance coverage beyond state minimums, you may consider the following coverage options:
Vermont car insurance requirements FAQs
Looking for more information on car insurance requirements in Vermont? Find the answers you need here.
Is car insurance required in Vermont?
Yes. Vermont requires all drivers to carry car insurance.
What type of insurance must you have to drive on Vermont roads?
A policy must include bodily injury liability insurance with minimum limits of $25,000 per person and $50,000 per accident, along with $10,000 in property damage liability insurance. Drivers also need uninsured/underinsured bodily injury coverage with minimum limits of $50,000 per person and $100,000 per accident, plus uninsured/underinsured property damage coverage of $10,000.
Do you need Vermont insurance to register a car in Vermont?
Yes. You must have car insurance before registering the vehicle in Vermont. While you don’t need to show proof of coverage, the form asks you to certify that your vehicle currently has liability insurance in effect as required by Vermont law.
Does insurance follow the car or the driver in Vermont?
In Vermont, car insurance generally follows the car, not the driver. So if your friend borrows your vehicle and causes a car accident, for example, your insurance acts as primary coverage.
)
)
)
){kind=logo}
){kind=small}
){kind=small}
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}