Vermont Car Insurance Requirements

In Vermont, as in every state, car insurance is sure to play a big part in any claim brought after a car accident. Read on for the details of Vermont's auto insurance requirements, how coverage affects claims made in the wake of a crash, and the kinds of penalties you're likely to face if you drive without insurance in Vermont.

Is Vermont a "No-Fault" Car Insurance State?

No. Vermont follows a traditional "fault"-based system when it comes to financial responsibility for losses stemming from a car accident: injuries, lost income, vehicle damage, and so on. This means that the person who was at fault for causing the car accident is also responsible for any resulting harm (from a practical standpoint, the at-fault driver's insurance carrier will absorb these losses, up to policy limits).

In Vermont, a person who suffers any kind of injury or damage due to a car accident usually file a third-party car insurance claim directly with the at-fault driver's insurance carrier, or a a personal injury lawsuit in civil court against the at-fault driver.

Note: A number of states follow some form of a no-fault car insurance system, but Vermont drivers don't need to worry about no-fault after an in-state accident.

What Are the Car Insurance Requirements In Vermont?

According to the official Vermont Statutes (specifically, 23 V.S.A. section 800), the required minimum amounts of liability car insurance in Vermont are:

• $25,000 liability coverage for bodily injury or death of one person in an accident caused by the owner/driver of the insured vehicle
• $50,000 liability coverage for total bodily injury or death liability in an accident caused by the owner/driver of the insured vehicle
• $10,000 liability coverage for property damage per accident caused by the owner/driver of the insured vehicle.

For vehicle owners who don't purchase liability insurance, filing evidence of $115,000 in self-insurance is also an option in Vermont. This proof must be filed with the state's Commissioner of Motor Vehicles, according to 23 V.S.A. section 800.

What Does Liability Car Insurance Cover In Vermont?

Liability coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits.

You can (and in some situations should) liability coverage above the required minimums to protect you in case a serious crash results in significant car accident injuries and vehicle damage. Once liability coverage limits are exhausted, you're personally on the financial hook for other people's accident-related losses.

Remember that liability coverage doesn't apply to your own injuries or vehicle damage after a Vermont car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses. For example, collision coverage (optional in Vermont) can pay for repairs to (or replacement of) your damaged vehicle after a car accident. Note that collision or comprehensive might be required under the terms of a vehicle lease or financing agreement.

Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.

Is Uninsured Motorist Car Insurance Coverage Required In Vermont?

Yes. Uninsured motorist (UM) coverage is also required in Vermont, according to 23 V.S.A. section 941. This kind of coverage protects you and your passengers if the at-fault driver has no insurance, or if you're injured in a hit and run accident. For injury, required UM minimums limits in Vermont are $50,000 per person/ $100,000 total per accident. For property damage (damage to your own vehicle, for example) there is a maximum limit of $10,000 for UM coverage.

What Are the Penalties for Driving Without Insurance In Vermont?

According to the Vermont Department of Motor Vehicles, anyone who operates (or permits operation) of an uninsured vehicle may be issued a traffic ticket which can result in a fine, assessment of points against driving privileges, and/or driver's license suspension. Of course, that's all in addition to serious financial consequences if you cause a car accident and you don't have car insurance.

And if you're caught driving without insurance in Vermont, you may need to file "Financial Responsibility Insurance" with the Vermont DMV.

What Is Financial Responsibility Insurance In Vermont?

According to the Vermont DMV, Financial Responsibility Insurance is a type of liability insurance coverage that an individual might be required to carry after they've been involved in certain kinds of car accidents and/or violated a driving-related law (including laws requiring car insurance.

Financial Responsibility Insurance doesn't run with a vehicle, but with the person who's required to carry it. They're covered to operate any vehicle (whether the vehicle is owned by them or not).

If you're required to file Financial Responsibility Insurance with the Vermont DMV, you must maintain it for a minimum of three years, with suspension of driving privileges as a penalty if the coverage lapses or isn't renewed.

Getting Help After a Car Accident In Vermont

It's important to understand how car insurance works and your coverage options in Vermont, but if you're injured in a car accident, you might want to discuss your options with a legal professional. Learn more about when you might need a car accident lawyer, and what to expect from your first meeting with a car accident attorney.