To legally drive in Vermont, all residents must maintain minimum auto liability insurance. The state operates under a traditional at-fault system, which means the driver responsible for causing an accident must pay for the resulting damages. This updated guide explains Vermont’s car insurance rules and coverage options for 2025.
Just Enough Coverage: Vermont’s Insurance Basics
Every registered vehicle in Vermont must carry at least the following minimum insurance coverage:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident
- Property Damage Liability: $10,000 per accident
This basic policy—commonly referred to as 25/50/10 coverage—helps cover injury-related expenses and property damage if you are found at fault in an accident. While this meets the legal requirement, it may not fully protect you in a serious crash. Many drivers choose higher limits for peace of mind.
Why Consider Higher Coverage in Vermont?
While 25/50/10 liability coverage meets Vermont’s legal minimum, it may not be enough in today’s world:
- Vehicle repair and medical costs continue to rise
- A serious accident could easily exceed minimum limits
- Uninsured motorist rates are significant — making UM/UIM even more important
- Peace of mind knowing you’re protected beyond the basics
Most Vermont drivers carry higher limits such as 100/300/50 to avoid paying out of pocket after a major crash.
Uninsured On The Roads In Vermont?
Vermont requires that insurance companies include uninsured and underinsured motorist (UM/UIM) coverage equal to your bodily injury liability limits. This protects you if you’re hit by a driver who has no insurance or lacks enough coverage. You may opt out, but only by submitting a signed rejection form.
Optional Insurance Choices In Vermont
To better protect your own vehicle and finances, Vermont drivers often add the following coverage types:
- Collision Coverage: Pays for damage to your car after a crash, regardless of fault.
- Comprehensive Coverage: Covers non-collision damage like theft, hail, fire, or vandalism.
- Medical Payments (MedPay): Helps cover medical bills for you and your passengers.
- Roadside Assistance & Rental Reimbursement: Offers help for tows, jump starts, or temporary transportation after an accident.
Adding optional coverage can help avoid major out-of-pocket expenses after unexpected incidents.
Laws Against Driving Without Insurance In Vermont
Driving uninsured in Vermont can result in serious consequences, including:
- Fines up to $500 and additional court fees
- Suspension of your driver’s license and vehicle registration
- Requirement to file an SR-22 to prove future financial responsibility
Even a short lapse in coverage can trigger penalties. Always maintain continuous insurance.
- Minimum liability: 25/50/10
- UM/UIM required unless rejected in writing
- Proof of insurance must be shown when requested
- No electronic real-time verification system in place
Proof of Insurance
Vermont does not use a real-time insurance verification system. However, you must be prepared to show proof of insurance:
- When requested by law enforcement during a traffic stop
- After an accident
- When completing certain DMV transactions
Proof can include your insurance card (physical or digital) showing current policy details.
Frequently Asked Questions about Vermont Car Insurance
What are Vermont’s minimum car insurance requirements in 2025?
Drivers must carry at least $25,000 in bodily injury liability per person, $50,000 per accident, and $10,000 in property damage liability. UM/UIM coverage is also required unless rejected in writing.
Does Vermont verify auto insurance electronically?
No. Vermont does not use a real-time verification system. Proof must be shown during stops, accidents, or certain DMV transactions.
What are the penalties for driving uninsured in Vermont?
Fines up to $500, suspension of license and registration, and possible SR-22 filing are common penalties. Repeat offenses carry stricter consequences.
Do you need proof of insurance to register a car in Vermont?
No, proof is not required at registration. But you must maintain valid coverage while the vehicle is registered.
What is UM/UIM coverage in Vermont?
Uninsured/underinsured motorist coverage protects you if the at-fault driver has no insurance or too little. Vermont requires insurers to include it unless you decline in writing.
Can I show proof of insurance on my phone in Vermont?
Yes. Vermont accepts digital proof of insurance during traffic stops or DMV checks, as long as the document is current and valid.
Compare Vermont’s insurance requirements with nearby states:
New York,
New Hampshire, and
Massachusetts.