Vermont car insurance requirements

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Vermont has an unusual gap between its liability and uninsured motorist requirements. Liability limits are 25/50/10, but uninsured/underinsured motorist coverage must be carried at higher limits of $50,000 per person and $100,000 per accident for bodily injury, with $10,000 for property damage. That means a Vermont driver is required to carry more protection for their own injuries from an uninsured or underinsured driver than for the injuries they might cause others.

Enforcement is civil rather than criminal. Under 23 V.S.A. 800, operating without insurance is a traffic violation with a civil penalty of up to $500 and points on your record, and failing to carry proof of coverage can cost up to $100. If you are stopped without proof, Vermont gives you seven business days to send or produce proof that coverage was in effect at the time. Vermont also adopted limits on how insurers may use credit-based insurance scores in 2018, after a state study found that every insurer surveyed used credit scoring.

Vermont minimum liability limits

To register and drive a car in Vermont you need at least this much liability coverage:

• $25,000 for injuries to one person in an accident you cause.
• $50,000 in total for injuries to everyone in that accident.
• $10,000 for damage to other people's property, such as their car.

Other required and offered coverage

Besides liability, Vermont requires:

• Uninsured/underinsured motorist (UM/UIM) coverage: $50,000 per person / $100,000 per accident bodily injury and $10,000 property damage

Learn more about uninsured motorist coverage and personal injury protection.

Is Vermont a no-fault state?

Vermont is an at-fault (tort) state. The driver who causes a crash is responsible for the other people's injuries and property damage, which is normally paid by that driver's liability insurance. Injured people can claim against the at-fault driver's insurer or, in some cases, sue.

Vermont is an at-fault state. It uses modified comparative negligence, so your recovery is reduced by your share of fault and barred if your negligence is greater than the other party's.

Read more: at-fault vs. no-fault states explained.

Can insurers use your credit in Vermont?

Status: Restricted. Vermont adopted consumer protections on the use of credit-based insurance scores in 2018 (based on a national model law). Insurers may still use credit as one rating factor.

See how credit affects car insurance for the bigger picture.

Penalties for driving uninsured in Vermont

Driving without required insurance is a civil traffic violation with a civil penalty of not more than $500 under 23 V.S.A. 800, and it carries points on your driving record. Failing to carry proof of insurance in the vehicle can bring a civil penalty of not more than $100.

Vermont law allows the DMV Commissioner to require proof of financial responsibility before a vehicle inspection.

If you are ordered to file proof of insurance, see what SR-22 insurance is.

Tips for Vermont drivers

• Check that your UM/UIM limits are at least 50/100/10. Vermont's required UM/UIM limits are higher than its liability limits, and some insurers quote the two separately.
• If you are cited for not carrying proof, you will not be convicted if you send or produce proof within seven business days to the issuing agency, as long as the coverage was in effect at the time of the stop.
• Vermont lets you show proof of insurance on a phone or other portable electronic device. Showing it that way does not give the officer the right to look at other contents of the device.
• Keep your insurance card with your registration before inspection time. The DMV Commissioner may require evidence of financial responsibility before a vehicle inspection.
• If you think credit-based insurance scoring affected your rate, ask your insurer how it was used. Vermont's 2018 consumer protections apply, and the Department of Financial Regulation handles complaints.

When you shop, compare quotes from several insurers using the same limits and deductibles, so the prices are like-for-like.

Official resources

• Insurance regulator: Vermont Department of Financial Regulation
• Motor vehicle agency: Vermont Department of Motor Vehicles

Your state insurance department can answer questions about your rights and handle complaints about insurers.

Frequently asked questions

What are Vermont's minimum car insurance limits?

Vermont requires liability coverage of 25/50/10: $25,000 for injury to one person, $50,000 for injury to everyone in one accident, and $10,000 for property damage. It also requires uninsured/underinsured motorist coverage at higher limits of $50,000 per person, $100,000 per accident and $10,000 for property damage.

What is the penalty for driving without insurance in Vermont?

Under 23 V.S.A. 800, operating a vehicle without insurance is a traffic violation with a civil penalty of not more than $500, and it adds points to your record. Failing to carry proof of coverage in the vehicle can lead to a civil penalty of not more than $100.

What if I forgot my proof of insurance in Vermont?

If you are cited for not carrying proof, you will not be convicted if you send or produce proof of coverage to the issuing enforcement agency within seven business days. The coverage must have been in effect at the time of the stop. Vermont also allows you to show proof on a portable electronic device.

Does Vermont allow credit scores in car insurance pricing?

Yes, with limits. A Department of Financial Regulation study found that all of the auto insurers it surveyed used credit scoring as one factor, and in 2018 Vermont passed consumer protections modeled on a national law. These rules limit how credit information can be used. Ask your insurer how it uses credit, or contact the Department.

Sources

• Vermont Legislature - 23 V.S.A. Section 800 (Insurance required)
• Vermont Legislature - Credit-Based Insurance Scoring Report (Department of Financial Regulation, 2018)
• Insurance Information Institute - Background on compulsory auto/uninsured motorists