Minimum requirements and how to get cheap auto insurance in Vermont
Vermont is known for a lot of things — some of the best skiing in New England, excellent maple syrup, Bernie Sanders and some of the lowest average car insurance rates in the country.
Unless you’ve lived in multiple states, you might not know that each enforces its own laws and minimum requirements when it comes to auto insurance. Here’s what to expect when you get behind the wheel and out on Vermont’s winding mountain roads.
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Vermont’s statewide averages for car insurance costs were right around $950 to $1,000 annually in 2017. In fact, only three states in the nation had lower average rates. The national average comes in at $1,300.
You’ll find quite a bit of cost differences across the state, though. For example, a driver in downtown Burlington might pay more than someone living on a farm 30 miles away. This is partly because living in an area with high population density typically means a vehicle is at higher risk for theft, vandalism and traffic accidents.
Because insurance providers base much of their policy cost calculations on a driver’s likelihood of filing claims, lower risk can translate into lower costs for the customer.
Looking for ways to save money on your auto insurance in Vermont? No matter what state you’re in, use our general tips to lowering your premiums and getting top value out of your coverage in our comprehensive guide to car insurance.
To legally drive in Vermont, you’ll need insurance that includes at least:
In addition, you’ll need to carry uninsured/underinsured motorist coverage with at least:
In Vermont, you’ll find the same range of coverage offerings as you’d find in any other state, including:
According to estimates from the Insurance Research Council, only 6.8% of motorists in Vermont were on the road without proper car insurance coverage in 2015. That’s about half the national average of 13% and a far cry from Florida’s statewide estimate of 26.7%.
A low rate of uninsured drivers within a state is believed to be a factor in generally low auto insurance rates.
You don’t necessarily have to purchase car insurance in Vermont, but the alternative is costly: You must deposit $115,000 with the DMV or the Vermont State Treasurer. With this deposit, you’re given a certificate of financial responsibility that you can display if you’re asked for proof of insurance by a police officer. This deposit is then used to pay for damages after an accident you’re involved in, including medical costs and property damages.
Additionally, because Vermont is a “tort” or at-fault state when it comes to dealing with car accidents, you can be held liable for the other driver’s damages and medical bills as well as having to cover your own. This could quickly eat up your deposit after a severe crash that injures multiple people. Any excess costs after the deposit is gone are covered from your own pocket. For these reasons, most Vermont drivers stick with conventional car insurance coverage rather than placing a deposit with the state.
Yes. You might want temporary car insurance coverage if you only drive on very rare occasions or if you’re spending a month or two in Vermont and plan to drive while you’re there.
However, not all major providers offer temporary coverage in all parts of the country. You may want to consider smaller insurance providers or nontraditional coverage, and allow extra time for comparison shopping and finding a provider that works for you.
If you’re pulled over and can’t show proof of insurance, you have seven days to present proof to the Vermont DMV.
If you don’t have coverage at all or if you fail to show your proof within the time allowed, you face stiff fines and other administrative penalties that include:
Most states throughout the US share a fairly common set of traffic laws. But Vermont has a few of its own regulations that you may want to note before hitting the road:
The blood alcohol content (BAC) limits in Vermont are the same as what you’ll find throughout the US: 0.08% for all typical drivers and 0.04% for commercial drivers.
If you exceed these limits, you could be charged with driving under the influence (DUI) and could face steep fines, a license suspension and possible jail time.
| First offense | Second offense | Third offense | |
|---|---|---|---|
| Jail | Up to 2 years | Up to 2 years | Up to 5 years |
| Fines and penalties | Up to $1,500 | Up to $2,500 | |
| License suspension | 3 months | 18 months | Indefinite |
| Ignition interlock device (IID) required | No | No | No |
Yes. An SR-22 isn’t actually insurance, but rather a document proving to the state that you’re legally and legitimately insured. You might need an SR-22 in Vermont if you’ve gotten a DUI or you’re caught driving without car insurance.
Even the most minor car accident can leave you shaken and wondering what to do next. After an accident, follow these steps to ensure that you’re safe and protect yourself against any unnecessary worries when processing your car insurance claim:
Vermont is a “tort” or at-fault state. When one driver is considered at-fault for an accident through negligence or violation of traffic laws, that driver’s insurance or self-insurance deposit pays for all damages and injuries up to their policy limits. Also, if the at-fault driver’s insurance can’t cover all the damages or injuries resulting from the crash, the victim in the accident can sue for additional damages or “pain and suffering.”
You’re required to submit a car crash report to the local police within three days if the accident results in injury, death or property damages of $3,000 or more. You must report the accident even if your car was parked, and if your accident involved more than two cars, you’ll need to submit as many forms as necessary to cover them all.
Not all car accidents require contacting a lawyer. But if these conditions apply to your situation, you may want to consider seeking legal advice:
Car insurance helps to protect you, your vehicle and everyone else on the road, and it’s legally required to get behind the wheel in the scenic state of Vermont. Vermont’s auto insurance rates are relatively low compared to national averages, but you could find ways to save even more if you’re willing to shop around and compare offerings from multiple providers.
To learn more about insurance regulations, discounts, policy extras and more, read our comprehensive guide to car insurance.
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