Just as in other states, you are legally required to have auto insurance so that you can lawfully operate a vehicle in the state of Vermont. More specifically, you are required to have your vehicle covered by a minimum amount of liability insurance so that you can legally operate it in Vermont. You can find the minimum amount of liability insurance in the following Statute, which you can read here.
Any person that violates this law, either by operating an uninsured vehicle or allowing someone else to operate an uninsured vehicle, might get a traffic citation. This traffic citation would result in having to pay a fine and the assessment of points against your driving privileges and/or license. You would also have to file Financial Responsibility Insurance with the Vermont DMV.
Minimum Insurance Requirements in Vermont
As previously mentioned, you are required to have liability insurance in the state of Vermont. This means that your auto insurance policy must include bodily injury liability coverage, property damage liability coverage, and uninsured/underinsured motorist coverage. You have to purchase at least $25,000 of bodily injury liability coverage per person and a minimum of $50,000 for two or more people involved in an accident.
Proof of Insurance
The majority of drivers in Vermont get higher bodily injury limits than the minimum requirement. They often get bodily injury limits of $100,000 per person and $300,000 per accident. However, this is not mandatory in Vermont, just common.
Vermont drivers have to purchase property damage limits of $10,000 per accident in order to meet the minimum insurance requirements in Vermont. Many Vermont drivers choose to get much higher property damage limits of $50,000 per accident, though. You also have to purchase uninsured/underinsured motorist coverage with limits of $50,000 per person, $100,000 per accident, and $10,000 of property damage protection.
Financial Responsibility Insurance
Financial Responsibility Insurance is a kind of liability insurance that is for a certain person, not for a specific vehicle. Someone with Financial Responsibility Insurance is covered to operate any vehicle, regardless of whether they own the vehicle or not. There are several reasons why you might file Financial Responsibility Insurance with the Vermont DMV. You can check out the specific Vermont statute that describes said reasons if you like.
If you are required to file Financial Responsibility Insurance, you have to maintain this type of insurance with the Vermont DMV for at least three years. Any kind of lapse on this kind of coverage results in a suspension of your driver’s license/driving privileges. Your driver’s license/driving privileges won’t be reinstated until you have filed valid Financial Responsibility Insurance with the Vermont DMV.
Optional Auto Insurance in Vermont
You can choose to buy optional auto insurance if you wish. You can buy physical damage coverage, which essentially combines comprehensive and collision protection and pays for the cost of repairs to your car. Collision coverage pays for repairs to your car after a crash and comprehensive coverage pays for damages to your car as a result of anything aside from a crash.
You can also buy medical payments coverage in Vermont. Quite a few Vermont drivers buy medical payments coverage of a $5,000 limit to cover medical and funeral expenses resulting from an accident. Medical payments coverage pays for the costs of hospital visits and stays, ambulance fees, EMT fees, and more regardless of your liability.