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.
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.
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?
As of 2025, Vermont drivers must carry at least $25,000 in bodily injury liability per person, $50,000 per accident, and $10,000 in property damage liability. Uninsured and underinsured motorist coverage is also required unless formally rejected.
Does Vermont verify auto insurance electronically?
No. Vermont does not currently use a real-time insurance verification system. Drivers are required to show proof of insurance when stopped by law enforcement or during specific DMV transactions.
What are the penalties for driving uninsured in Vermont?
Penalties include fines of up to $500, suspension of both your license and vehicle registration, and possibly an SR‑22 requirement to regain driving privileges. Multiple offenses can lead to higher penalties.
Do you need proof of insurance to register a car in Vermont?
No, Vermont does not require proof of insurance at the time of vehicle registration. However, you must carry valid insurance while the vehicle is registered and be able to present proof when requested.
Compare Vermont’s insurance requirements with nearby states:
New York,
New Hampshire, and
Massachusetts.