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Vermont Car Insurance Requirements

Vermont Minimum Car Insurance Requirements

The state of Vermont requires its drivers to carry two kinds of car insurance: liability coverage and uninsured/underinsured motorist coverage. Each of these insurances come with their own mandatory minimums drivers must meet in order to legally hit the road. The mandatory car insurance minimums according to Vermont law are as follows:

Liability Insurance

  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident
  • $10,000 property damage per accident

Uninsured/Underinsured Motorist Coverage

  • $50,000 bodily injury per person
  • $100,000 bodily injury per accident
  • $10,000 property damage per accident

What is outlined above is only what Vermont requires. Your auto lender or leasing company could require you to carry additional car insurance.

Vermont Liability Insurance

Like many other states, Vermont requires you to carry liability coverage. Liability insurance pays for bodily injury and property damage you cause after an accident you have been found to be at fault for. It can also cover lost wages and pain and suffering compensation. It is important to note that your liability insurance will never cover your injuries or damage to your property.

Uninsured/Underinsured Motorist Coverage in Vermont

Vermont is a bit unique in the way it requires you to carry a certain amount of uninsured/underinsured motorist coverage. What this type of car insurance does is cover your expenses when the at-fault driver lacks liability insurance. Instead of being stuck with the bills, you can file a claim through your insurer using this type of coverage.

Car Insurance Limits in Vermont

A coverage limit is the maximum amount your insurer will pay up to in the event of a claim. At the same time, states will set their own minimum limits that drivers must meet in order to be considered legal drivers. You are able to adjust these limits when purchasing a policy but never go below the state-mandated minimums.

In the state of Vermont, the liability insurance limits are expressed as 25/50/10. Each number represents a different component of liability coverage: bodily injury per person, bodily injury per accident, and property damage, respectively. What these covers can be found below.

  • Bodily injury per person is the maximum amount your insurer will pay for a single person’s injuries that you cause in an accident.
  • Bodily injury per accident is the amount your insurance company will pay for any injuries caused by you in an accident.
  • Property damage per accident is how much your insurer will payout for the damage you cause in an accident.

Uninsured/underinsured motorist coverage has minimum limits that operate the same way. The only major difference is what this type of insurance covers. Instead of paying for injuries or damage the other driver sustains, it will cover your expenses.

Is Vermont’s Mandatory Insurance Minimums Enough Coverage?

It is nice that Vermont requires two types of insurance to be carried by drivers but the insurance limits are lackluster. For example, if you end up causing a multi-car collision, $10,000 in property damage coverage will not be enough to pay for all the auto repair bills that will follow. It is highly recommended that you purchase an insurance policy with increased coverage limits. Also, it would be worth looking into any additional insurances to add to your policy for expansive protection.

Driving Without Insurance in Vermont

Car insurance is required by law in Vermont. For this reason, failure to provide proof of a policy when driving can have some serious consequences. Listed below is what you could be facing should you choose to drive without car insurance in the state of Vermont.

  • A fine of no more than $500
  • SR22 maintenance requirement
  • Licenses suspension

Additional Types of Car Insurance in Vermont

while Vermont requires two types of car insurance for drivers to carry, there are many ways you can expand your coverage. Listed below are some common types of car insurance you can add to your policy.

  • Collision: This coverage pays for damage to your vehicle after an accident with another car.
  • Comprehensive: This covers damage to your vehicle following a non-collision-related incident. Some perils covered under this policy include theft and extreme weather.
  • Gap Coverage: This type of insurance will cover the difference in your vehicle’s actual cash value and what is remaining on your auto loan. This can come in handy if your car is totaled before you can finish paying it off.
  • Medical Payments: This coverage pays for medical expenses you and your passenger(s) accumulate after an accident.
  • Roadside Assistance: If your car is experiencing mechanical issues, roadside assistance can be there to help resolve a variety of car problems.

Car Insurance is Important For Any Vermont Driver

While you cannot predict a car accident, you can sure try to be prepared for it, and insurance is one of the best ways to go about doing so. A proper insurance policy will help give you the coverage you need. It will also protect your finances. It would be in your best interest to really sit down and look at your driving circumstances. After an accident, you may be really glad you went through the insurance shopping process.

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