Car Insurance in Vermont

Car Insurance in Vermont

Vermont laws require you to maintain car insurance on your vehicles so that you are safe from unfortunate costs you may encounter from the risks of owning a car.

Read more to learn all about car insurance rules, how Vermont officials can help you with car insurance issues, and how you can save on your premiums.

Vermont Car Insurance Requirements

Vermont laws require you to purchase liability and uninsured motorist coverages as part of your car insurance policy.

Liability Coverage

In Vermont, your car must have liability car insurance to help pay for costs related to injuries or property damage from a car accident you caused.

To comply with Vermont's laws, your liability insurance must include the following minimum limits:

  • $25,000 for injury or death to one person in an accident.
  • $50,000 for total injury or death if multiple people are hurt in the accident.
  • $10,000 for property damage.

Uninsured/Underinsured Motorist Coverage

Uninsured and underinsured motorist coverage helps you pay for costs arising from injuries you suffer after an accident caused by a driver who does not have car insurance or who has insufficient insurance to cover your costs.

Vermont requires you to have uninsured/underinsured motorist coverage at the following minimum limits per accident:

  • $50,000 for bodily injury to one person.
  • $100,000 for total injury if multiple people are injured or killed.

Optional Coverage

While you are only required to hold liability and uninsured motorist coverage, you may want to consider purchasing additional coverage to help further protect you against unfortunate incidents.

When shopping around for car insurance quotes, consider one or more of the following:

  • Collision – This will help pay for damages to your car due to traffic accidents.
  • Other than collision (commonly known as “Comprehensive") – This will help pay for damages to your car resulting from most cases that do not involve traffic accidents.
  • Medical payments – This will help cover your medical costs related to injuries from a car accident.
  • Towing and labor.
  • Rental.

Proof of Insurance

The state does not require you to file a proof of insurance with the DMV. However, you will be required to show proof of insurance upon a police officer's request during a traffic stop.

Proof of insurance can be obtained through your auto insurance company or agent and typically comes in the form of a car insurance ID card.

Violations and Penalties

If you are pulled over and found to be without proof of insurance, but you do have a current insurance policy, you will be given 15 days to provide your proof of insurance to the officer that stopped you.

If you do not have insurance, you face the following penalties:

  • Fines.
  • 2 points on your driving record.
  • Mandatory filing of Financial Responsibility Insurance (SR-22).
    • See below for more information.

Financial Responsibility Insurance (SR-22)

Financial Responsibility Insurance, also known as SR-22 insurance, is a type of insurance that covers you instead of your car. This means that no matter what car you are driving, you will be covered under your own insurance.

The state may require you to file Financial Responsibility Insurance for the following reasons:

  • You are convicted of a traffic violation.
  • You are involved in a car accident.

If you are required to file Financial Responsibility Insurance, you must do so for a minimum of 3 years.

Your car insurance company must file your Financial Responsibility Insurance via an SR-22 certificate.

Other Car Insurance Issues

Because car insurance can be a sensitive subject, Vermont's Department of Financial Regulation has programs and systems in place to help consumers like you deal with issues such as car insurance questions, complaints, and even fraud.

Consumer Complaints

You may find yourself in a dispute with your insurance company that you cannot settle.

If you need to file an insurance complaint to the DFR, you may do so online at the DFR website.

You can also print out a complaint form and submit it one of the following ways:

  • By fax to (802) 828-1446
  • By mail to:
    • Department of Financial Regulation
    • Insurance Division
    • 89 Main Street
    • Montpelier, VT 05620

Car Insurance Fraud

Every year, insurance companies take big losses because of insurance fraud. Those losses often get passed down to you through increases in premiums. You can help by reporting suspected instances of insurance fraud.

Car insurance fraud often involves:

  • Staging car accidents.
  • Making up or lying about the extent of injuries.
  • Falsifying property damage.

You can report suspected car insurance fraud by calling (833) 337-4685.

Determining Your Car Insurance Premium

There are several factors that go into determining the price of your car insurance in Vermont.

When shopping for car insurance, keep in mind that the following will factor into your quotes:

  • Driving record.
  • Your car's:
    • Make.
    • Model.
    • Year.
  • Credit history.
  • Insurance history.
  • The location where you primarily park your car.
  • Deductibles:
    • This is the amount you are responsible for towards a claim.
    • You can lower your rates by assuming higher deductibles.


One great way to save on car insurance is by taking advantage of discounts.

When comparing car insurance quotes, don't forget to ask about these common discounts:

  • Good driver.
  • Good student.
  • Multi-car.
  • Homeowner's.
  • Anti-theft.

Remember that while discounts can save you money, your best bet for obtaining cheap car insurance in Vermont is to maintain a good driving record.

Most Stolen Cars in Vermont

Owning a car targeted for theft can increase your car insurance rates.

The following are Vermont's most stolen cars in 2013, according to

  1. Subaru Legacy.
  2. Ford Pickup.
  3. Honda Civic.
  4. Chevrolet Pickup (Full Size).
  5. GMC Pickup (Full Size).
  6. Jeep Cherokee/Grand Cherokee.
  7. Toyota Camry.
  8. Toyota Corolla.
  9. Honda Accord.
  10. Subaru Forrester.
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