Commercial Auto Insurance Minimum Requirements in Vermont
Financial responsibility applies to both private and commercial vehicles, requiring all drivers to carry proof of insurance in the event of an accident. Compliance, with most commercial vehicle owners, comes in the form of liability insurance.
Ways to Establish Financial Responsibility
The state gives you three coverage options:
- Establish self-insurance.
- Obtain a surety bond from an authorized in-state broker.
- Purchase liability insurance.
Determine Whether You Need Commercial Insurance
Commercial insurance is not exclusive to large businesses with large fleets of vehicles. It can also cover smaller businesses like florists, pizzerias, and snowplowing services. To determine if commercial insurance is a perfect marriage for your business, consider the following:
- Will you use a single vehicle or an entire fleet?
- How will your company vehicle(s) be used?
- Who will drive your vehicle(s)?
- Will you transport a heavy load of tools or equipment?
- Will you require use of a trailer?
- Will you need higher limits of liability due to the nature of your business?
If you're still undecided, you can contact the Department of Motor Vehicles (DMV) or an insurance agent for assistance.
Determine the Required Amount of Coverage
If you opt for commercial insurance, you'll next have to decide on how much coverage to carry. Consider the following factors when deciding on an amount:
- Who owns the vehicle(s)
- Weight of the vehicle(s)
- Usage of the vehicle(s)
- Liability insurance requirements
NOTE: Minimums may vary depending on the type of business your vehicle primarily performs.
Purchase a Commercial Policy
After deciding on your coverage, spend as much time as possible researching different providers. Every company offers different rates and policies, and you'll find some specialize only in commercial coverage whereas others offer both auto and commercial.Choose a State:
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