Insurance requirements for registering a car in Vermont
The state of Vermont requires all drivers to have minimum liability insurance or "financial liability" to cover the cost of a car accident. This is required to legally register and operate a vehicle in Vermont.
The minimum financial liability requirements for Vermont drivers are as follows:
Minimum $25,000 per person for personal injury or death. This means you need to have at least $50,000 with you to cover the fewest possible number of people involved in an accident (two drivers).
$10,000 minimum for property damage liability
A minimum of $50,000 per person for an uninsured or underinsured motorist. This means you need to have at least $100,000 with you to cover the fewest possible number of people involved in an accident (two drivers). This provides protection in the event that a driver has an accident with another driver who does not have the insurance required by law.
This means the total minimum financial liability you will need is $160,000 to cover personal injury or death, uninsured or underinsured motorist, and liability for property damage.
Other types of insurance
While the liability insurance listed above is all that is required of Vermont drivers, many drivers choose to have other types of insurance to cover more of the cost of an accident. These types include:
Collision insurance, which pays for damage to your vehicle in an accident.
Comprehensive coverage that covers damage to your vehicle as a result of non-accident conditions (such as inclement weather).
Medical insurance coverage that covers the cost of medical bills after an accident.
Towing and labor insurance, which covers the cost of towing and necessary labor to get your vehicle back on track after an accident.
Rental compensation, which covers the costs associated with the necessary car rental after an accident.
proof of insurance
The State of Vermont does not require proof of insurance to be kept by the Department of Motor Vehicles. However, you will be required to show your insurance card to the police officer at the stop or at the scene of the accident.
Penalties for Violation
If you are caught driving without insurance, you must provide an insurance certificate to a police officer within 15 days. If you are unable to do so, or you are caught driving without the insurance required by law, you may face the following fines:
Fines
Two points in your driving experience
Mandatory filing of SR-22 Proof of Financial Responsibility. This document serves as a guarantee to the government that you will carry the required liability insurance for at least three years. This document is usually required only for those who have been convicted of reckless driving, such as drunk driving.
For more information or to renew your registration online, contact the Vermont Department of Motor Vehicles through their website.
