Even though Vermont is the 2nd least populous state in the United States, Vermont’s Financial Responsibility Law requires motorists to maintain liability insurance for the vehicle they drive. Even though the Green Mountain State requires drivers to have proof of insurance, drivers don’t need to file their proof of insurance with the DMV.
Although you do not have to file your proof of insurance with the DMV, you do still need to carry proof of insurance, usually in the form of an ID card issued by your insurer, with you when you are driving. If you’re pulled over while driving on Vermont roads, you will have to show your insurance ID card to the officer.
Minimum insurance requirement in Vermont
California drivers must maintain the following minimum coverage as part of their car insurance:
Vermont car insurance requirements and minimum
Vermont requires liability auto insurance to protect its drivers from financial loss in the case of an accident resulting in bodily injury or property damage. Vermonters must have an auto insurance policy that includes Bodily Injury Liability coverage, Property Damage Liability coverage and Uninsured/Underinsured Motorist Coverage. Whenever you get a car insurance quote in Vermont, these will be the lowest limits you can get, as per the law:
Bodily Injury (BI): $25,000/person, $50,000/accident
- $25,000 per injured person
- $50,000 per accident for two or more injured persons
- Your personal assets
- Legal fees in the event that the other party sues you, only up to the stated limit amount
Does not cover
- Your own medical bills
Property Damage (PD): $10,000/accident
- $10,000 per accident
- Higher limits are available, which varies by insurer
- Everything from the other driver’s car
- Other properties that are damaged in the accident (buildings, fences, etc)
Uninsured/Underinsured motorist (UM/UIM)
Uninsured/underinsured motorist bodily injury (UM/UIMBI) requirement
- $50,000 per person
- $100,000 per accident
Uninsured/underinsured motorist property damage (UM/UIMPD) requirement
- $15,000 per accident
- $250 deductible for every accident you make a claim for
Cheapest companies in Vermont for minimum liability
Optional car insurance coverage in Vermont
In addition to getting higher limits of required forms of liability coverage, you can purchase optional coverage to further protect yourself from financial loss. In Vermont, you can buy the following options:
Physical Damage: two different coverages make up physical damage protection: Collision and Comprehensive. Together, collision and comprehensive protection pay for repairs to your car. While collision coverage will cover the cost to repair your car after a crash, comprehensive coverage will pay for damages to your car resulting from any other kind of incident. Regardless of your liability in a crash, your collision coverage will still pay for the cost of repairs to your car. It is common for Vermont motorists to purchase deductibles of $500 for both collision and comprehensive coverage.
Medical Payments Coverage (MedPay): Most Vermont drivers purchase MedPay coverage of a $5,000 limit to pay for any medical and funeral expenses resulting from an auto accident. Regardless of your liability, MedPay covers the costs of hospital visits and stays, doctor visits, EMT and ambulance fees, funerals and more.
Alternative proof of financial responsibility
To comply with Vermont’s Maintenance of Financial Responsibility Law, you have to get auto liability insurance, unless you require a certificate of insurance, also known as an SR-22 form. If you do not want your insurer to file an SR-22 form for you, or if your insurer refuses to file an SR-22 form, you can provide the following as proof of insurance in place of an SR-22 form:
- A cash or security deposit of $115,000 with the State Treasurer
- A surety bond that certifies that a surety company will cover all claims against you in the case of an accident, provided that you eventually reimburse the surety company.