’s car insurance laws require all drivers to buy auto insurance policies that include $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, and $10,000 of property damage liability. Additionally, all drivers must purchase uninsured/underinsured motorist coverage with policy limits of 50/100/10.

Vermont requires all drivers to buy $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, $10,000 of property damage liability, and uninsured/underinsured motorist coverage.
Vermont does not require PIP coverage or MedPay.
A state minimum car insurance policy may not provide enough coverage for all scenarios.
Penalties for
driving without insurance
in Vermont include license suspensions, fines, and an SR-22 filing requirement.

Minimum car insurance requirements in Vermont: liability and uninsured/underinsured motorist coverage

Vermont’s minimum insurance requirements include the following coverage limits:

$25,000 of

bodily injury liability (BIL)

per person

$50,000 of bodily injury liability per accident

$10,000 of

property damage liability (PDL)

Uninsured/underinsured motorist coverage

, including $50,000 of BI per person, $100,000 of BI per accident, and $10,000 of UMPD

With this coverage, your insurance company will pay up to $25,000 per person or $50,000 per accident for injuries you cause in an at-fault accident. It will also pay up to $10,000 for damage you cause to others’ property.

The uninsured/underinsured motorist coverage will protect you financially if you’re involved in an accident or a hit-and-run with a driver who doesn’t have enough liability coverage.

Here’s a summary of the Vermont auto insurance requirements.

Vermont minimum auto insurance requirements

Type of coverage	Minimum insurance limit
Bodily injury liability	$25,000 per person; $50,000 per accident
Property damage liability	$10,000
Underinsured/uninsured motorist coverage	$50,000 UMBI per person, $100,000 UMBI per accident, and $10,000 UMPD

Key Takeaway Vermont is an at-fault state that requires drivers to carry minimum amounts of liability insurance and uninsured/underinsured motorist coverage.

Understanding Vermont’s minimum insurance requirements

Liability coverage

protects you from lawsuits if you cause an auto accident. The liability coverage that Vermont requires will help pay for injuries you cause other drivers or damage to their property—but it won’t cover any of your own expenses.

Underinsured/uninsured motorist coverage will protect you financially if you’re in an accident with a driver who doesn’t have enough car insurance coverage.

The state of Vermont also requires insurance providers to offer

medical payments coverage (MedPay)

. However, Vermont law does not require you to purchase this coverage.

Remember: Vermont liability insurance will damage or injuries you cause others, but it won’t pay for your own expenses. MedPay isn’t required by the state, but it can help cover your medical expenses after an accident.

How much does Vermont state minimum coverage cost?

Vermont minimum liability insurance costs an average of $928 annually or $77 monthly. A standard full coverage policy costs, on average, $1,743 per year.

Remember: Car insurance rates are different for everyone and are based on age, ZIP code, gender, driving record, vehicle type, and other factors. You can get lower premiums by increasing your deductible,

qualifying for discounts

, and

comparing quotes

from various companies.

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Do you need more coverage than Vermont’s required minimum?

In many cases, yes.

Vermont’s car insurance requirements are close to the national average, but that doesn’t mean you’ll have enough coverage for every situation. Let’s explore how a state minimum liability policy might compare to the costs of a real accident.

Here’s what it might look like if you’re in an accident with minimal coverage…

Let’s start with liability. According to the Insurance Information Institute (III), the average bodily injury liability claim in 2021 was $22,734, and the average property damage liability claim was $5,314. Based on those averages, your Vermont minimum liability coverage should be sufficient.

What about your own expenses? While Vermont does require drivers to purchase uninsured/underinsured motorist coverage, it won’t protect you financially if you’re the at-fault driver. Researchers at the III found that the average collision claim in 2021 was $5,010—which you’ll have to pay out of pocket if you only have auto liability insurance.

Furthermore, those numbers only represent the average cost of insurance claims. If you’re in a serious accident that totals a vehicle or causes death or severe injury, your out-of-pocket costs could climb into the tens of thousands.

Our recommendation

Purchase at least $50,000 per person and $100,000 per accident of bodily injury liability coverage

Increase your property damage liability policy limit to at least $50,000

Buy collision and comprehensive coverage to replace your car

Key Takeaway State minimum insurance may not provide enough coverage for all situations.

Additional coverage options

Purchasing a full-coverage policy—including liability,

collision coverage

, and

comprehensive insurance

—can help you be protected in most scenarios. But for even more peace of mind, you may want to add additional protections to your policy. Some popular add-on coverage types include:

Gap insurance

: Gap insurance pays the difference between your car’s

actual cash value

and whatever you own on its loan or lease.

MedPay: Pays for your medical bills or your passengers' medical expenses following a crash.

What is the penalty for not having auto insurance coverage in Vermont?

If you’re caught driving without valid

proof of insurance

in Vermont, you may face fines and a driver’s license suspension. Furthermore, you may have to file a

Vermont SR-22 certificate

, which will increase your

car insurance

premiums.

Penalties for driving without insurance in Vermont:

First offense:

Fines between $250 and $500

License suspension

SR-22 filing requirement

Subsequent offenses:

Fines between $250 and $500

License suspension

SR-22 filing requirement

FAQs

What are the minimum requirements for auto insurance in Vermont?

Vermont drivers must purchase liability coverage with the following limits:

$25,000 of bodily injury liability (BIL) per person

$50,000 of bodily injury liability per accident

$10,000 of property damage liability (PDL)

Additionally, all drivers must purchase uninsured/underinsured motorist coverage, including $50,000 of UMBI per person, $100,000 of UMBI per accident, and $10,000 of UMPD.

Which two types of insurance are required on every vehicle in Vermont?

All Vermont drivers are required to have minimum levels of liability insurance and uninsured/underinsured motorist coverage.

Does Vermont require annual vehicle inspections?

Yes—the state of Vermont requires all annual inspections for all motor vehicles. This annual inspection includes a safety and emissions check.

What is an SR-22 in Vermont?

An SR-22 form is proof of insurance required by the state of Vermont following a severe moving violation, like a DUI conviction or driving without insurance.

Is Vermont a no-fault state?

No—Vermont is an at-fault state, meaning whoever is responsible for the car accident must pay for the losses of all other parties involved.

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