How much car insurance do I need in Vermont?

Learn about minimum insurance coverage requirements for vehicles in Vermont, consequences for driving without insurance, and more.

In Vermont, drivers must show "financial responsibility" before they can register and drive a vehicle in the state. As a means of establishing financial responsibility, Vermont has established, under V.S.A., Title 23, Chapter 11, §800, the following minimum coverage amounts:

  • $25,000 per person to cover bodily injuries caused by a car accident
  • $50,000 total per accident, to cover bodily injuries, when more than one person is hurt
  • $10,000 to cover property damage arising from an accident

These are only the minimum financial responsibility requirements in Vermont. Most people choose to purchase a  car insurance  policy in order to meet these minimums, and in many cases it is wise to carry additional coverage, if possible. If you cause an accident, and the damages exceed your policy limits, you will likely be personally on the hook for the difference.

Important note: If you lease or finance your vehicle, you should consult your contract to see what it says about your insurance requirements. Oftentimes, these agreements require more insurance than state minimum requirements. You might need to add options like comprehensive coverage to your policy. Get in-depth information on  Different Types of Car Insurance Coverage.

Alternative Ways to Establish Financial Responsibility in Vermont

Another way to establish financial responsibility in Vermont is by filing a $115,000 surety bond with the Commissioner of Vehicles. If you cause an accident, the surety bond will cover the losses -- medical bills, lost income, etc. -- suffered by injured drivers and passengers.

Uninsured/Underinsured Motorist (UIM) Coverage in Vermont

In Vermont, you are required to carry UIM coverage, which can be a financial lifesaver if you are in an accident with an at-fault driver who either carries no insurance or has low policy limits that won't cover your losses. Get more information about  Uninsured and Underinsured Motorist Coverage.

What is the Penalty for Failing to Establish Financial Responsibility in Vermont?

If you break the law in Vermont by driving without establishing financial responsibility for a potential car accident, you will receive a citation and pay a fine. You will also incur points against your driving privileges. This may -- if you have multiple violations -- result in the suspension of your driver's license.

For more information about Vermont's car insurance laws, you can read our article  Vermont Auto Insurance Laws and Regulations.

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