Vermont Auto Insurance Laws | The bank rate
According to United States Census Bureau, Vermont had a population of just under 624,000 people in 2019. Although Green Mountain State has a small population, its traffic statistics reflect the high cost in human lives that traffic accidents inflict. According to Vermont Highway Safety Bureau, in 2020:
- 61 people died in traffic accidents, up from 47 in 2019
- 50 people died in traffic accidents in rural areas
- Impaired driving contributed to 44.26% of deaths
- Speeding contributed to 21.31% of deaths
- Older drivers contributed to 24.59% of fatalities
- 202 people suffered serious injuries
Owning a car gives you the freedom of mobility, but with that comes responsibility. Before getting behind the wheel, you must purchase auto insurance to meet or exceed legal requirements. States require motorists to purchase a minimum level of auto insurance, and Vermont is no exception. If you drive without insurance in Vermont, you could lose your driving privilege and face costly fines.
Auto Insurance Laws in Vermont
According to Vermont Department of Financial Regulation, the state requires all drivers to have minimum levels of liability and coverage for uninsured / underinsured motorists:
- Liability for bodily injury per person: $ 25,000
- Liability for bodily injury by accident: $ 50,000
- Civil liability for property damage by accident: $ 10,000
- Bodily injury caused by an uninsured / underinsured motorist per person: $ 50,000
- Personal injury to uninsured / underinsured motorists by accident: $ 100,000
- Property damage to uninsured / underinsured motorists: $ 10,000 (maximum coverage available)
Drivers can choose to purchase more coverage for more financial protection, but they must meet at least these limits.
Liability insurance in Vermont
Vermont’s minimum liability insurance requirements may not provide all the protection you need. For one thing, liability insurance only pays for damage done to others – it doesn’t pay for damage to your own vehicle or your medical bills.
Auto liability insurance also only pays up to the limit. If you don’t have enough insurance, you could face huge reimbursable expenses if you are responsible for an accident. Consider this, Vermont only requires you to carry $ 10,000 in property damage liability, but if you total another driver’s 2021 Nissan Sentra, the replacement cost could exceed $ 20,000. And if the other driver sustains an injury, hospital costs could cost $ 10,000 per day.
When purchasing personal injury liability insurance, financial experts generally recommend having a $ 100,000 per person and $ 300,000 per accident. You can also wear to at least $ 100,000 in liability insurance for property damage if you can afford it.
Also consider purchasing a personal umbrella policy, which offers liability coverage of $ 1 million or more, for around $ 200 to $ 300 per year. In addition to insurance coverage required by the state, a leasing company or lender may also require you to purchase collision and comprehensive coverage for a financed or leased automobile.
Is Vermont a Flawless State?
Some states have no-fault laws, which require all drivers to purchase Personal Injury Protection Coverage (PIP). No-fault laws require drivers to file claims with their insurance company, regardless of who is found to be responsible for an accident, and limit the conditions under which drivers can sue for injury and pain and suffering. .
Vermont is not a fault-free state and does not require drivers to purchase a PIP, making it easier for another driver to sue you if you are at fault in an accident. Your auto insurance can help you reduce these costs if you have sufficient coverage.
Penalties for driving without insurance in Vermont
Driving without required auto insurance in Vermont can be costly and result in a suspension of your driving privilege. Drivers caught driving without insurance are liable to a traffic violation and a fine of up to $ 500.
Vermont also requires that you provide proof of insurance. A digital insurance ID card stored on a mobile device such as a cell phone will suffice. If you are stopped during a traffic stop and cannot provide proof of insurance, the law allows you to avoid a violation by providing proof within seven working days of the incident. A driver who cannot provide proof of insurance after seven days is subject to a fine of up to $ 100 and a suspended driver’s license.
Additional Auto Insurance Coverage Options in Vermont
For many auto owners, the minimum coverage may not provide all the protection they need. Leasing companies and lenders may require additional coverages for financed and leased vehicles. Drivers can also choose certain types of optional covers to maximize their protection.
Collision coverage pays to repair or replace your vehicle following a covered accident. Typically, this type of coverage is required by leasing companies and lenders for financed or leased cars. Insurance premiums are based on many specific factors including the make and model of the automobile. Even if you have a clean driving record and don’t have a history of auto insurance claims, collision coverage can dramatically increase your insurance rates. Once you’ve made your last car payment, you have the option of waiving collision coverage.
Like collision coverage, leasing companies and lenders generally require comprehensive coverage for both financed and leased vehicles. Comprehensive coverage only pays to repair or replace vehicles that experience covered losses other than collision damage. Covered losses may include those caused by fire, broken glass, storm, theft or vandalism. For example, if someone steals your car, you can file a claim against your full coverage.
While comprehensive coverage generally costs a lot less than collision coverage, the price you pay may depend on the type of car you drive. Full coverage can also cost more in places with high auto theft rates.
Although not required by Vermont law, medical payment coverage provides good financial protection. Following a covered accident, medical coverage can help pay for the medical costs of you and your passengers, with no deductible, regardless of who is responsible for the collision.
Medical expense coverage may also cover the medical expenses of you or members of your household who sustain injuries while riding in another person’s vehicle, when struck by a vehicle while walking or while traveling in transport. in common. Following a covered loss, this affordable coverage can help pay ambulance service, doctor’s visits, emergency services, contribution to health insurance costs and deductibles, hospital costs, nursing services and surgery costs.
Other optional coverage
Insurers offer a wide variety of optional coverages, which may vary by provider. Other common optional coverages include:
Frequently Asked Questions
What is the best auto insurance company in Vermont?
According to Bankrate research, the best auto insurance companies in Vermont are Allstate, Geico, MetLife, State Farm, and USAA. In JD Power study on auto insurance in the United States in 2021, Amica Mutual, Geico, State Farm, and USAA have above-average Customer Satisfaction Index scores for the New England region. However, the best for each person will depend on their priorities. Shop around and compare the options to find the one that’s right for you.
What is the cheapest car insurance in Vermont?
According to research from Bankrate, Allstate, Geico, Nationwide, State Farm, and USAA offer the cheapest auto insurance in Vermont. These carriers offer an average annual premium of $ 195 to $ 447 for minimum coverage and $ 807 to $ 1,893 for full coverage. But the average premiums don’t reflect the rate you’ll pay for auto insurance. For the most accurate rate, ask for quotes from several Vermont auto insurance companies.
Does Vermont require proof of insurance to register a vehicle?
According to Vermont Department of Motor Vehicles, proof of insurance is not required when registering a vehicle. However, if you are caught driving without insurance, you could face fines and a driver’s license suspension.