Vermont Auto Insurance Laws, Minimums, Requirements

What mandatory auto insurance laws exist the state of Vermont?

• In the state of Vermont, all drivers must carry auto insurance.
• Before registering a vehicle, you must present proof of minimum liability coverage in the amount of $25,000 for death or injury of one person, $50,000 for death or injury of two or more persons, and $10,000 for property damage.
• Vermont drivers also have the option to provide evidence of self-insurance in the amount of $115,000.00, which must be filed with the commissioner of motor vehicles.
• All Vermont drivers must carry proof of insurance at all times. Failure to provide proof of coverage could result in tickets, you could be fined $100, and you will accumulate two points on your driving record. You will also have to file proof of financial responsibility with the Vermont Department of Motor Vehicles.
• In the state of Vermont, your license can be revoked if you are caught without auto insurance during an accident, while you are intoxicated, fleeing an accident, driving recklessly that results in the death of another person, driving with a suspended or revoked license, or driving a vehicle without the owner’s consent.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Vermont, your policy must include minimum liability coverage of:

$25,000 for death or injury of one person,
$50,000 for death or injury of two or more persons,
and
$10,000 for property damage.

What are the Rental Car Insurance Requirements?

In the state of Vermont, auto insurance is mandatory for all motor vehicles. This includes rental cars. Rental cars must carry the minimum liability coverages required by Vermont law. It is important to keep in mind that most Vermont auto insurance policies cover car rentals. Most credit cards cover car rentals as well, so be sure to check your auto insurance policy and/or check with your credit card issuer. If you find that your credit card and/or auto insurance policy do not cover rental cars, you must purchase car rental insurance from the car rental company. It typically costs an extra $7-$14 a day.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Vermont law does not require Uninsured/Underinsured Motorist Coverage. Because Vermont is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What are the rules pertaining to the exclusion from coverage of a driver living in household?

Vermont law allows policyholders to exclude a member of the household from the policy. It is also legal for auto insurance companies to write a policy that excludes household members that may be considered high-risk due to driving history, etc. These exclusions are listed in the exclusions section of the policy, which also includes a list of all possible circumstances that would free the insurance company from the responsibility of paying a claim. Because a household exclusion means that the excluded person will not be covered under any circumstance, this included emergencies, it is extremely important to examine your auto insurance policy carefully before signing on the dotted line.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

If you allow your insurance to lapse in the state of Vermont, the insurance company will notify the DMW. Once the DMV has been notified, your driver’s license and privileges will be suspended.

What are the rules and guidelines auto insurance companies must follow regarding the use of Personal Credit History in selecting applicants and setting rates?

In the state of Vermont, it is legal for auto insurers to use Personal Credit History to help determine which products they will offer as well as rates. Your Personal Credit History may also be used to determine whether you will be making monthly or quarterly payments or if you will be required to pay the entire premium upfront. Personal Credit History is also used to create an “insurance risk score.” This score also helps determine your auto insurance rates. In order to enjoy a lower insurance premium, pay your bills on time in an effort to improve your score. This will also help improve your credit history so that in the long run, you can save money on your car insurance premium. That said, Personal Credit History is not the only assessment tool Vermont auto insurance companies may use. They also consider age, gender, where you live, car make and model, how much you drive, and driving record.

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Vermont follows a Tort System. What this means is, if you are involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Because Vermont is a Tort state, most insurance companies recommend that driver’s consider carrying higher coverages than the state minimums. 

What is the average auto insurance premium in this state? As of what year?

As of 2006, Vermont resident’s average insurance premium was approximately $687, the 32nd most expensive in the nation. This was down 1.8% from the previous year. The national average was $817.

Sources

Insurance Information Institute

State of Vermont Department of Motor Vehicles