According to the United States Census Bureau, Vermont had a population of just under 624,000 people in 2019. Despite having a small population, Vermont’s traffic statistics show the severe consequences of road accidents. According to the Vermont Highway Safety Office, in 2020:
- Traffic accidents claimed the lives of 61 people, compared to 47 deaths in 2019.
- 50 people were killed in rural traffic accidents
- 44.26% of fatalities were caused by impaired driving
- Speeding was responsible for 21.31% of all fatalities
- To 24.59% of the fatalities, older drivers were responsible
- 202 people sustained serious injuries
Although owning a car allows you to be mobile, it also comes with some responsibilities. To meet the legal requirement, you must purchase auto insurance before you can get behind the wheel. Vermont is one of the states that requires motorists to have minimum car insurance. Driving without Vermont insurance could result in you losing your driving privileges and triggering costly fines.
Vermont has laws regarding car insurance
According to the Vermont Department of Financial Regulation, the state requires all drivers to carry minimum levels of liability and uninsured/underinsured motorist coverages:
- Bodily Injury Liability per Person: $ 25,000
- Bodily Injury Liability per Accident: $50,000
- Accidental property damage coverage: $10,000
- Uninsured/underinsured motorist bodily injury per person: $50,000
- Uninsured/underinsured motorist bodily injury per accident: $100,000
- Uninsured/underinsured motorist property damage: $10,000 (maximum coverage available)
Drivers have the option to buy more coverage, but they must adhere to these limitations.
Vermont offers liability insurance
Vermont’s minimum liability insurance requirements may not provide all the protection you need. Liability insurance does not cover your vehicle’s damage or your medical bills.
The limit on auto liability insurance coverage is also not covered. If you do not carry enough insurance, you could face massive out-of-pocket costs if you are at fault for an accident. Consider this, Vermont only requires you to carry $10,000 in property damage liability, but if you total another driver’s 2021 Nissan Sentra, the replacement cost could exceed $20,000. And if the other driver sustains an injury, hospital expenses could cost $10,000 per day.
When buying bodily injury liability coverage, financial experts usually recommend carrying a minimum of $100,000. Per person, $300,000. per accident. You may also want to carry at least $100,000 in property damage liability coverage if you can afford it.
Also consider purchasing a personal umbrella policy, which provides liability coverage of $1 million or more, for around $200 to $300 per year. A lender or leasing company may require that you purchase collision and comprehensive coverages for your financed or leased vehicle.
Is Vermont a state of no-fault?
No-fault laws are available in some states, and require that all drivers have personal injury protection (PIP). No-fault laws require that drivers file claims with their insurers, regardless of fault, in order to limit the circumstances under which they can sue for injury and pain and suffering.
Vermont is not a state that requires drivers to have PIP. This makes it easier for someone else to sue you for negligence in an accident. If you have sufficient coverage, your car insurance may be able to help reduce these costs.
Driving without insurance in Vermont can result in severe penalties
Driving without Vermont’s required auto insurance can lead to suspension of driving privileges and costly fines. Drivers caught driving without insurance are subject to a traffic violation and a fine of up to $500.
Vermont also requires proof of insurance. It will suffice to have a digital insurance ID card on a mobile device, such as a cell phone. You can provide proof of your insurance within seven days after you’re pulled over for a traffic violation. Drivers who fail to provide proof of insurance within seven days of being pulled over are subject to a $100 fine and a suspension of their driver’s licence.
Additional options for auto insurance in Vermont
Many automobile owners may not need all the coverage they require. Leasing companies or lenders may require additional coverage for leased and financed vehicles. Drivers may also choose some types of optional coverages to maximize their protection.
Collision coverage pays to repair or replace your vehicle following a covered accident. Leasing companies and lenders typically require this coverage for cars that are financed or leased. Insurance premiums are determined by many factors including the make and year of the vehicle. Collision coverage can increase your insurance rates even if you are a clean driver and have not been involved in any car insurance claims. After you have made your last car payment you can choose to cancel collision coverage.
Leasing companies and lenders often require comprehensive coverage for both leased and financed vehicles, just like collision coverage. Comprehensive coverage pays only to replace or repair vehicles that are not damaged by collision. These losses include fire, glass breakage and storms as well as theft or vandalism. You can file a claim against your comprehensive insurance if your car is stolen.
Comprehensive coverage is generally more expensive than collision coverage. However, it may be less expensive than comprehensive coverage depending on what car you drive. In areas with high rates of car theft, comprehensive coverage can also be more expensive.
While not required by Vermont law, medical payments coverage provides good financial protection. Medical payments coverage is available to help you and your passengers with medical expenses. There is no deductible regardless of fault.
You or your family members can be covered for medical expenses if you are injured while riding in another vehicle or being struck by a vehicle on the streets. Following a covered loss, this affordable coverage can help pay for ambulance service, doctor visits, emergency room services, health insurance co-pays and deductibles, hospital costs, nursing services and surgery costs.
Additional optional coverage
There are many optional coverages that insurance companies offer, and they can vary from one provider to the next. The following are some other common optional coverages:
- Customized equipment coverage
- Emergency road service
- Gap insurance for financed and leased vehicles
- Insurance for mechanical breakdown
- Protection for new car replacement
- Original Equipment Manufacturer (OEM), coverage
- Rental car reimbursement coverage
- Rideshare insurance
Questions frequently asked
Which is the best Vermont car insurance company?
Based on Bankrate’s research, the best car insurance companies in Vermont include Allstate, Geico, MetLife, State Farm and USAA. J.D. J.D. Power’s 2021 U.S. Auto Insurance Study, Amica Mutual and Geico earned higher overall customer satisfaction index scores than the New England region. The best option for you will vary depending on your priorities. Compare options and shop around to determine which one is best for you.
Which is the best car insurance in Vermont?
According to Bankrate’s research, Allstate, Geico, Nationwide, State Farm and USAA offer the cheapest car insurance in Vermont. The average annual premium for these carriers is $195 to $447 for minimum coverage, and $807 to $1893 for complete coverage. However, these average premiums are not indicative of the actual rate you’ll pay for auto insurance. Request quotes from multiple Vermont auto insurance companies to get the best rate.
Is Vermont required to provide proof of insurance in order to register a vehicle
According to the Vermont Department of Motor Vehicles, proof of insurance is not required when registering a vehicle. You could be fined and have your driver’s license suspended if you are found driving without insurance.