Car Insurance In Vermont 2026: Laws, Costs, Requirements & Companies

With 15 years of experience in the industry, I’ve seen how car insurance laws and premiums can impact drivers differently. This guide is designed to help Vermont drivers best understand the common accident causes and how that relates to getting the right level of coverage for their needs, as well as the laws and penalties for car insurance requirements.

Does Vermont Require Car Insurance?

Yes, all drivers in Vermont operating a registered motor vehicle need to maintain liability car insurance. Drivers have to prove they have coverage when a vehicle is registered or renewed, and always carry proof, or face steep fines and penalties.

In Vermont, basic state requirements include liability and uninsured motorist (UM) coverage as follows:

• Bodily Injury Liability: $25,000 per person and $50,000 per accident.
• Property Damage Liability: $10,000 per accident.
• Uninsured/Underinsured Motorist (UM/UIM) Bodily Injury: $50,000 per person and $100,000 per accident.
• Uninsured/Underinsured Motorist (UM/UIM) Property Damage: $10,000 per accident

How Much Insurance Should You Get In Vermont?

While Vermont has strict requirements, these are often insufficient for serious accidents, especially the low property damage coverage. For this reason, many drivers increase their coverage and consider option coverage.

Vermont might legally require liability and uninsured motorist coverage, but it also subjects drivers to rugged terrain, severe winter weather, and high wildlife density.

Comprehensive Coverage

Comprehensive coverage can protect you against non-collision events like weather damage, theft, wildlife collisions, or damage from things like hailstorms.

Full Glass

Full glass is something you can add to comprehensive coverage for Vermont drivers. It’s particularly important given the high number of gravel roads, both local and secondary, which can regularly damage windshields.

Collision Coverage

Collision coverage can cover the cost of repairs to your car after a single vehicle accident with things like utility poles, slide-offs from black ice, or a collision with a guardrail.

Roadside Assistance

Roadside assistance can help you change a flat tire or jump a dead battery, particularly important in Vermont’s rural areas where other help might be very far away.

Rental Car Reimbursement

This type of coverage can cover the cost of a rental car if your car is currently being repaired for a covered claim.

How Much Is Car Insurance In Vermont?

The average monthly cost for maintaining state minimum coverage is around $27 per month, but around $123 per month for full coverage. These rates are, however, contingent on many other factors, including the following:

• Low-income car insurance: There are no low-income programs to support Vermont drivers, but the standard coverage is very affordable compared to many other states.
• Non-owner car insurance: Drivers who don’t own a car can pay around $26 per month for insurance.
• Temporary car insurance: A short-term, 6-month policy costs around $200 for Vermont drivers.
• Senior car insurance: Seniors can expect very low premiums for minimum coverage, around $40 per month, and $118 for full coverage.
• Teen car insurance: 16-year-olds have some of the highest premiums in Vermont, around $120 per month for minimum coverage and up to $400 per month for full coverage.
• SR-22 / High-risk insurance: High-risk drivers average $65 for minimum coverage and $182 per month for full coverage with an SR-22 filing.
• College students / Young adults: The average cost for college students is around $43 per month for minimum coverage and up to $123 for full coverage.
• Bad credit: Bad credit can increase prices significantly, with poor credit raising premiums by an average of 78%.
• With a speeding ticket: A single speeding ticket typically raises minimum coverage premiums to around $45 and up to $100 per month for full coverage.

These figures are general estimates and can vary depending on the insurer and your personal driving profile.

Which Car Insurance Companies Operate In Vermont?

The Vermont car insurance market includes an array of major national brands and specialty, regional brands. These insurers offer a range of coverage options and discounts tailored to Vermont drivers:

• State Farm
• GEICO
• Progressive
• Allstate
• Liberty Mutual
• USAA
• Nationwide
• Travelers
• Farmers Insurance
• American Family Insurance
• Co-operative Insurance Companies
• Union Mutual (known for cheap rates)
• Vermont Mutual Insurance Group
• The Concord Group Insurance Co. (ideal for teens and young drivers)
• Amica Mutual Insurance
• Patriot Insurance Company
• Auto-Owners Insurance
• MAPFRE
• The General
• Direct Auto Insurance (ideal for SR-22)
• PURE insurance (for those with high-value vehicle coverage and high-net-worth)
• National General Insurance

Note: You can find a complete registry of licensed insurance providers using the Vermont Department of Financial Regulation Licensee Search tool.

You can also compare quotes and coverage details through Insuranceopedia to find the best fit for your needs.

How To Get Lower Insurance Premiums In Vermont

Finding ways to capitalize on discounts can keep your premiums much lower. Vermont residents can try some of these tips to reduce costs on car insurance.

Take A State-Approved Defensive Driving Course

Vermont drivers can voluntarily reduce their premiums for liability and collision coverage by completing state-approved defensive driving courses. There are also discounts for accident prevention courses as long as they come from qualified providers.

Leverage Surcharge Protections

There are certain events where your insurance premium might go up, such as causing a car accident or being issued a traffic citation.

However, Vermont state law prohibits insurance providers from applying a surcharge for claim payments made under a comprehensive coverage policy, medical payment, or uninsured motorist event. So, if you file a claim for things like fire, theft, or getting hit by a driver without insurance, follow up with your insurance provider to make sure that your premium doesn’t go up as a result of that particular claim.

Consider Local Or Regional Insurers

Vermont has many local carriers that often have more competitive rates for things like state minimum coverage and full, comprehensive coverage. Take time to compare the offerings you get from companies like Vermont Mutual or Union Mutual to those of the national chains.

Review Your Uninsured/Underinsured (UM/UIM) Limits

Vermont has very high minimum requirements for uninsured and underinsured policies, but you can make sure that you are not paying for duplicate medical coverage if your health insurance coverage applies to such situations.

Raise Deductibles

Your deductible is the amount that you have to pay out of pocket before your insurance kicks in, so if you have extra money you can set aside for an emergency, raising your deductible from something like $500 to $1,000 can save you up to 30% on your premiums.

Use Telematics

Being a safe driver and using things like telematics programs to track your driving habits can reduce premiums by qualifying you for safe driver discounts. These are typically devices that plug into your car or utilize an app on your phone.

Shop Annually

It is always important to check your coverage annually. As things like your credit score, vehicle type, or other factors change, so can your premiums.

Proof Of Insurance In Vermont

Vermont state law (23 V.S.A. § 800) required all vehicle owners carry insurance and proof of that insurance at all times. Failure to do so can mean immediate legal and financial consequences.

If requested by any law enforcement officer, you have to present either your physical insurance card or a digital copy. If you have an insurance policy but you simply don’t have proof, Vermont gives you seven business days to provide it with proof.

Failure to do so can result in a civil fine of up to $5,000 for those who did not have active insurance at the time. Additional fines can include two points minimum added to your driving record and jail time up to 6 months.

In some cases, your driver’s license will be suspended, but in all cases, reinstating your driving privileges comes with maintaining a new policy, filing an SR22 with the Vermont DMV for 3 years, paying your reinstatement fees, and verifying your reinstatement with the Vermont DMV.

Vermont State Driving Laws

Vermont comes with a range of specific driving laws that pertain to insurance requirements, DUI penalties, and fault determination. These are all designed to keep passengers, drivers, and pedestrians safe. Below are the key regulations that every Vermont driver should know:

Fault State

Vermont is a fault state, which means the driver who is found at fault is financially responsible for any damages associated with the other parties.

Civil Lawsuit Thresholds

Vermont relies on a fault-based system with a modified comparative negligence rule. This means there are no specific monetary thresholds for someone suing, but drivers can only recover damages if they are found to be 50% or less at fault for the accident. There are also some limits based on where a lawsuit is filed, such as in small claims court.

Drivers Without Insurance

It is illegal to drive without insurance in Vermont, and doing so can result in penalties, a license suspension, points on your driving record, and a potential SR-22 requirement.

Uninsured Motorist (UM) Coverage

Uninsured motorist coverage is mandatory in Vermont, with minimum coverage amounts the same as the state minimum liability coverage.

SR-22s

Vermont may require an SR-22 form after offenses like failure to maintain insurance or a DUI. They also use SR-21A forms after an accident and FR-22 forms for tracking future responsibility, all of which have to be electronically filed with the DMV and typically maintained for three years.

Car Inspections

All Vermont-registered vehicles must undergo an annual safety inspection. New vehicles have to be inspected in Vermont within 15 days of registration. Only state-approved inspection stations can be used for this purpose.

Self-Insurance

Vermont allows individuals with a net worth of $115,000 and a fleet of 25 or more vehicles to apply for self-insurance. Certificates must be given by the Commissioner of Motor Vehicles.

Seat Belt Laws

Vermont requires all occupants to wear a seat belt. It is, however, a secondary enforcement, which means officers cannot issue a citation unless they have pulled you over for another offense.

Distracted Driving Laws

Drivers under the age of 18 in Vermont cannot use any type of electronic device except to report an emergency to 911, and even then, have to pull over to safety if possible. For drivers over the age of 18, no handheld use is permitted, though a phone can be mounted and calls or GPS can be utilized as long as no touching happens except to start the device or activate it.

Teen Driving Laws

Vermont uses a graduated driver licensing program with passenger and curfew restrictions, starting with a permit, followed by a provisional license, and then an unrestricted license after provisional requirements are met.

DUI Laws

The legal blood alcohol concentration limit in Vermont is 0.08% for drivers 21 and older, 0.04% for commercial drivers, and it’s 0.02% for anyone under the age of 21. Driving under the influence can result in license suspension, ignition interlock device requirements, jail time, and fines.

Statute Of Limitations For Claims

The statute of limitations to file a personal injury or property damage lawsuit in Vermont is 3 years after the date of the crash.

When To Report An Accident

Accidents in Vermont have to be reported to law enforcement immediately if they result in injury, death, or property damage valued at $3,000 or higher. A report has to be submitted to the Vermont DMV within 72 hours of the accident.

When Is A Car Declared A Total Loss?

A vehicle is considered a total loss in Vermont if the cost of repairs and the salvage value meet 100% or more of the actual cash value.

Cancellation/Non-Renewal Notification Laws

Vermont requires that auto insurers give you at least 15 days’ notice if they cancel your policy due to non-payment and 45 days’  notice for non-renewal or cancellation for other reasons.

Vermont Car Insurance Contact Information

Vermont drivers can save a lot of time and effort by having car insurance contact information readily at hand for different organizations that handle different needs.

1. Vermont Department of Financial Regulation (DFR) – Insurance Division

The Insurance Division regulates all insurance companies throughout the state, so if you have a problem with a claim being denied or your policy being canceled after an accident, you can contact this division.

Contact Information:

• Consumer Inquiries/Complaints: (802) 828-3302 or (800) 964-1784 (Toll-free).
• Email: dfr.insuranceinfo@vermont.gov.
• Insurance Fraud Reporting: (800) 964-1784.
• Physical Address: 89 Main Street, Montpelier, VT 05620-3101.
• Website: vermont.gov.

2. Vermont Department of Motor Vehicles (DMV)

The DMV is a contact point for registration and title issues. It is also the contact point for any Vermont driver whose license has been suspended because of an insurance lapse or uninsured accident. If you need to reinstate your licence, that is also handled here. The DMV is where to go to submit an SR-22 certificate as well.

Contact Information:

• General Information: (802) 828-2000.
• Toll-Free (Statewide): (888) 998-3766.
• Email: DMV.InformationUnit@vermont.gov.
• Scheduling Appointments: (888) 970-0357 or mydmv.vermont.gov.
• Physical Address: 120 State Street, Montpelier, VT 05603-0001.
• Website: vermont.gov.

3. Vermont New Motor Vehicle Arbitration Board (Lemon Law)

This is another place you might need, particularly if you are dealing with a dispute over a defect in a new vehicle.

Contact Information:

• Phone: (802) 828-2943.

Common Vermont Car-Related Crime And Fatalities

Drivers in Vermont should have some understanding of what types of car-related incidents are most likely. Below are some of the most common causes of car accidents and other accident statistics in the state.

Traffic Fatalities In Vermont

Vermont recorded around 60 car accident fatalities in 2025, a figure that has remained consistent since the pandemic. Of those, 22 involved alcohol, and another nine involved both drugs and alcohol. However, over 60% of people who were killed in car accidents in Vermont were not wearing seat belts.

Vehicle Theft Trends

Vermont has experienced car-related crimes, including theft from vehicles and full vehicle theft. Full vehicle theft rates have decreased 31.4% in 2024, but theft from vehicles has increased, particularly where vehicles are left unlocked.

Common Accident Causes For Drivers In Vermont

Drivers in Vermont face a 1 in 108 chance of hitting an animal during mating season, and in winter, snow and ice make roads particularly dangerous. Rural roads accounted for 91% of car accident deaths in 2021, the highest percentage in America. Other factors that contribute to car accidents include speeding and impairment.