Car insurance exists to give us peace of mind while we are on the road. If we are ever involved in a car accident or if our car ever gets damaged, car insurance helps us pay for the costs of the repairs.

Every state has their own laws and requirements for what kind of car insurance you should have before you are ready to drive. In accordance with Vermont state law, all drivers must be properly insured. If you are new to the state of Vermont or you are just shopping for a new car insurance company, it’s best to know what to look for. Here are the facts about car insurance laws in Vermont.

What Are The Minimum Car Insurance Requirements In Vermont?

In Vermont, there are two types of insurance that every driver must have:

  • Liability insurance: Liability insurance is the type of insurance that helps you pay for the costs of property damage and injuries resulting from an accident you caused. The state of Vermont requires that drivers must have the following minimum limits:
    • Bodily injury liability: $25,000 for injury or death to one person.
    • Total bodily injury liability: $50,000 if multiple people are injured.
    • Property damage liability: $10,000.
  • Uninsured motorist coverage: In a perfect world, every driver would have the insurance they need to protect themselves and other drivers, but unfortunately this isn’t always the case. For this reason, the state of Vermont requires all drivers to have uninsured motorist coverage just in case you are ever hit by a driver who is uninsured. Vermont drivers must have the following minimum limits on their policy:
    • Uninsured Bodily injury liability: $50,000 for one injured person.
    • Uninsured Total bodily injury liability: $100,000 if multiple people are injured or killed.

What Are My Other Car Insurance Options?

Vermont drivers are only required to have liability and uninsured motorist insurance coverages on their policy, but who is to say that it must stop there? If you feel like you could use some extra back-up, there are plenty of car insurance options available to choose from. Here are some of the most popular types of optional coverage:

  • Collision coverage: This type of car insurance covers the costs of damages following an accident.
  • Other than collision coverage: Otherwise known as “comprehensive” insurance, this type of coverage exists to cover the damages done to your car from something other than an accident such as bad weather, theft, or vandalism.
  • Medical payments: If you ever need extra help covering your medical bills after an accident, this type of coverage is there for you.
  • Towing and labor: This type of coverage comes in handy if you are ever broken down on the side of the road and need immediate assistance.
  • Rental car reimbursement: If your car is ever in the shop getting repaired for an extended amount of time, this type of coverage will help you pay for a rental car in the meantime.

Do I Need To File A Proof Of Insurance In Vermont?

The state of Vermont does not require you to file a proof of insurance with the Department of Motor Vehicles (DMV). Keep in mind, though, that if you are ever pulled over by law enforcement during a traffic stop, you will need to show proof of insurance.

Valid proofs of insurance include a signed letter from your insurance company, or a car insurance ID card given to you by your insurer.

What Are The Penalties For Not Having Car Insurance In Vermont?

It’s recommended that you always drive with proof of insurance in your vehicle. If you are ever pulled over by law enforcement for a traffic violation, you will be asked to show proof of insurance. If you are unable to show proof of insurance, but you are currently insured, you will have 15 days to provide proof of insurance to the officer that pulled you over.

If you simply are not insured, you will face the following penalties:

  • Fines.
  • 2 points on your driving record.
  • Mandatory filing of Financial Responsibility Insurance (SR-22): This type of insurance covers the driver instead of the car, meaning that you are always covered regardless of what car you drive. A driver will usually be required to file Financial Responsibility insurance after being convicted of certain traffic violations or being involved in a car accident. Once you file, you must keep this insurance for at least 3 years. The car insurance company that you are insured with must file your Financial Responsibility via an SR-22 certificate.

It is against the law in Vermont to drive without car insurance. To avoid facing penalties, always make sure that you are properly insured and that you always carry a valid proof of insurance with you in your car when driving.

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