Vermont Car Insurance Regulations & Required Coverage

Vermont car insurance regulations state that all drivers must maintain minimum liability insurance limits of 25/50/10 along with uninsured/underinsured bodily injury and property damage coverage. The state of Vermont uses a tort system and will always declare somebody to be responsible, or at fault, in a car accident. This person along with their Vermont auto insurance company are then held responsible for paying for all damages involved in the accident they caused. Learn more below.

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Jul 16, 2021

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All drivers living in Vermont are required to maintain minimum liability insurance limits of 25/50/10 along with uninsured/underinsured bodily injury and property damage coverage. The state follows a tort system and has penalties for individuals who fail to provide proof of insurance.

The state of Vermont uses a tort system and will always declare somebody to be responsible, or at fault, in a car accident. This person along with their insurance company is then held responsible for paying for all damages involved in the accident they caused.

Required Coverage

All personal vehicles in Vermont require the following liability coverage requirements:

  • Bodily Injury
  • Property Damage

Additionally, Vermont requires the following coverage:

  • Uninsured / Underinsured Motorist Bodily Injury Coverage
  • Uninsured / Underinsured Motorist Property Coverage
Minimum Vermont Car Insurance Requirements
Bodily Injury Liability $25,000 / $50,000 Limit
Property Damage Liability $10,000 Limit
Uninsured/Underinsured Bodily Injury $50,000 / $100,000 Limit
Uninsured/Underinsured Property Damage $10,000 Limit

Additional insurance coverage can include:

  • Comprehensive and Collision Coverage

Comprehensive insurance will cover expenses related to non-collision related incidents such as a tree falling and damaging your vehicle or someone breaking into your vehicle. Collision helps cover expenses for repairing or replacing of your vehicle regardless as to who is found at fault. These two types of coverage usually are packaged together and require a deductible to be payed before any compensation is given. Is your vehicle listed as one of the most stolen vehicles in Vermont? If so, comprehensive would be a good option for
you.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

  • Get a standard liability car insurance policy
  • Purchase a surety bond of $115,000
  • File proof of self insurance in the amount of $115,000 with the Vermont Commissioner of Motor Vehicles. (You may be required to provide this proof of self insurance prior to having your vehicle
    inspected.

Required Documentation

Your insurance company is not required to notify PennDOT that you currently meet the state’s minimum insurance requirements. In order to provide proof of insurance, you can provide one of the
following:

  • Insurance ID card provided by your insurance company
  • For insurers not authorized to do business in Vermont, a written certificate containing insurance information for the nonresident is acceptable

You must maintain proof of insurance and financial responsibility and present it:

  • When asked by a police officer (the law provides you 15 days to show proof of insurance if you are not able to do so when asked)
  • During the registration of your vehicle
  • During the inspection of your vehicle
  • After you are involved in an accident

Failure to Maintain Financial Responsibility Penalties

If you are unable to show proof of insurance when asked, you can face one of the following penalties:

  • A fine
  • Points on your license
  • Requirements to file financial responsibility insurance (SR-22) with the Vermont DMV

Vermont Insurance Agents

Burlington Car Insurance | Barre Car Insurance | Bennington Car Insurance | Essex Car Insurance | South Hero Car Insurance

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