Auto insurance in Vermont: what’s required, and what isn’t
Vermont does something almost no other state does: it requires more uninsured motorist coverage than liability coverage. The liability floor is 25/50/10, but UM and underinsured motorist coverage must be carried at 50/100 — double — and if you raise your liability limits above that, your UM limits follow automatically unless you say otherwise. Vermont has decided you should be better protected from other drivers than the law requires them to be.
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What Vermont requires you to carry
| Bodily injury, per person | $25,000 |
|---|---|
| Bodily injury, per accident | $50,000 |
| Property damage, per accident | $10,000 |
Vermont also requires
- Uninsured and underinsured motorist — 50/100, higher than the liability floor
- Vermont requires UM/UIM bodily injury coverage of at least $50,000 per person and $100,000 for two or more — double its own liability minimum. And if you carry liability above 50/100, your UM limits must match it unless you direct otherwise.
These are floors, not recommendations. Vermont sets the minimum a driver may legally carry. It does not assess whether that amount would cover a claim you caused. Anything above your limits is your personal exposure.
How Vermont enforces it
Vermont requires liability coverage under 23 V.S.A. § 800, enforced by the Department of Motor Vehicles. The state also accepts self-insurance as an alternative, on evidence of $115,000 filed with the Commissioner of Motor Vehicles — a specific figure worth noting, since it is more than four times the liability minimum and gives a sense of what Vermont actually considers adequate financial responsibility.
How rates are set in Vermont
Vermont is an at-fault state. The driver responsible for a crash is responsible for the resulting injury and property damage, and their liability limits cap what the insurer pays on their behalf.
The Department of Financial Regulation oversees insurers and publishes a consumer guide to auto insurance, while the DMV enforces the coverage requirement itself. The statutory framework sits in Title 23, Chapter 11 — § 800 for the requirement and § 941 for the uninsured motorist rules.
Because UM/UIM is compulsory at 50/100 and tracks liability upward by default, Vermont policies contain more protection at the floor than most states’ do. What remains adjustable is liability above the minimum, physical damage deductibles and carrier choice.
Credit-based insurance scores in Vermont
Vermont permits credit-based insurance scores in rating. Vermont is a small market with low crash frequency and premiums well below the national average, which compresses the dollar effect of any single rating factor.
What actually moves your premium here
Vermont requires more UM coverage than liability coverage
This is genuinely unusual. The liability floor is 25/50 but uninsured and underinsured motorist coverage must be at least 50/100 — double. Vermont has decided you should be better protected against other drivers’ failures than they are required to be against yours, which is a defensible position and a rare one.
Your UM limits track your liability limits upward
If you raise liability above 50/100, Vermont requires UM to match unless you actively direct otherwise. Most states make you ask for this. Vermont makes it the default, which means raising liability here quietly improves your own protection too.
Winter severity on rural two-lane road
Vermont combines hard winters with mountainous two-lane roads and very little divided highway. That produces run-off-road and single-vehicle claims that collision coverage responds to and liability does not — a liability-only policy leaves the most likely Vermont claim uncovered.
Low frequency keeps prices down
Vermont has among the lowest population density in the country and correspondingly low crash frequency, which is most of why premiums sit below the national average despite the state requiring relatively generous UM coverage.
See what you’d be matched with in Vermont
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Comparing carriers in Vermont
Confirm the UM limits on every quote. Vermont’s 50/100 requirement is higher than its liability floor, and a quote built around the more usual pattern of matching UM to liability at 25/50 would not be issuable here.
Given how much of the Vermont claim picture is single-vehicle winter incidents, price collision coverage and its deductible deliberately rather than treating it as an afterthought.
One habit matters more than any single carrier choice: re-check every year or two, and again after anything that changes your risk profile — a move across town, a new vehicle, a driver added or removed, or a violation ageing off your record. Carriers re-weight their rating factors continuously, so the one that priced you best three years ago is often not the one that prices you best today.
If you need an SR-22 in Vermont
Vermont requires proof of financial responsibility to be filed after certain suspensions, including driving uninsured and DUI convictions. Your insurer files it with the DMV. Confirm the period that applies to your case with Vermont DMV, since it runs from your reinstatement date.
Vermont auto insurance FAQ
- What is the minimum car insurance required in Vermont?
- Liability of at least $25,000 for one person and $50,000 for two or more killed or injured, plus $10,000 for property damage in any one crash — and uninsured/underinsured motorist coverage of at least $50,000 per person and $100,000 for two or more.
- Why is Vermont’s uninsured motorist requirement higher than its liability requirement?
- It is a deliberate policy choice. Vermont requires UM/UIM at 50/100 against a 25/50 liability floor, so drivers are better protected against uninsured and underinsured drivers than the minimum requires those drivers to be against them.
- If I raise my liability limits in Vermont, does my UM coverage go up?
- Yes, automatically. If your liability limits exceed $50,000 per person and $100,000 per accident, your uninsured motorist limits must be the same unless you direct otherwise. Most states make you request this; Vermont makes it the default.
- Can I self-insure in Vermont instead of buying a policy?
- Yes, on evidence of self-insurance in the amount of $115,000 filed with the Commissioner of Motor Vehicles. Very few drivers use this route, but the figure is a useful indication of what Vermont considers adequate financial responsibility.
- Is Vermont an at-fault or no-fault state?
- Vermont is an at-fault state. The driver who caused the crash is responsible for the resulting damage, and their liability coverage pays up to the policy limits.
Sources
Requirements on this page were verified against Vermont’s own regulator and motor vehicle agency on the date shown at the top. Rules change — if you are making a decision that turns on an exact figure, confirm it at the source.
- Vermont DMV — Insurance requirements
- Vermont DFR — Consumer’s guide to auto insurance
- 23 V.S.A. § 941 — Uninsured and underinsured motorist coverage
Consumer help in Vermont: Vermont Department of Financial Regulation, (800) 964-1784.