# Vermont car insurance: liability minimums, the higher UM/UIM floor and costs

> Vermont car insurance requires liability plus uninsured/underinsured motorist coverage at higher limits. See the minimums, proof rules, penalties, costs.

Canonical page: https://statecover-guide.com/location/vermont/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Vermont requires liability insurance of at least $25,000 per person, $50,000 per accident and $10,000 for property damage, plus uninsured/underinsured motorist coverage of at least $50,000 per person and $100,000 per accident. In other words, the minimum coverage that protects you is set higher than the minimum coverage that protects others. Car insurance here is relatively cheap: $893.16 a year per insured vehicle in 2023, below the national $1,281.

## Key facts

| Fact | Vermont |
|---|---|
| Liability minimum | $25,000 / $50,000 bodily injury, $10,000 property damage |
| Uninsured motorist | Required: at least $50,000/$100,000 bodily injury, plus property damage up to $10,000 ($150 deductible) |
| Underinsured motorist | Required: combined with uninsured motorist coverage (same $50,000/$100,000 minimum) |
| PIP | Not required |
| Medical payments | Could not be confirmed from an official source; ask the Vermont Department of Financial Regulation |
| Fault system | At-fault |
| Penalty for driving uninsured | Civil penalty of up to $500 |
| Average spent per insured vehicle (2023) | $893.16 a year, about $74 a month |
| Estimated uninsured drivers (2023) | 11.8% (US: 15.4%) |
| Regulator | [Vermont Department of Financial Regulation](https://dfr.vermont.gov/), 802-828-3302 (insurance consumer services) |
| Registration | [Vermont Department of Motor Vehicles](https://dmv.vermont.gov/registrations) |

## Vermont sets a higher floor for uninsured motorist coverage

Vermont does not simply copy its liability minimum into uninsured motorist (UM) coverage, and it does not let you skip UM. Under 23 V.S.A. 941, every policy must include combined uninsured and underinsured motorist coverage of at least $50,000 per person and $100,000 per accident. Both figures are above Vermont's own liability minimum of $25,000 per person and $50,000 per accident.

Why it matters: if you are hurt by a driver with no insurance, or by one carrying only the $25,000 minimum, your own UM/UIM coverage is what pays the rest of your injury costs, up to your limit.

How UIM works in Vermont is also worth knowing. A vehicle counts as underinsured when the other driver's liability limits are lower than your UM/UIM limits, or when payments to other injured people have used up their coverage. For example, if the at-fault driver carries $25,000 per person and you carry $100,000 in UM/UIM, the other driver counts as underinsured for your claim, and your UIM can pay toward the difference if your injuries are worth more than their policy pays.

If you buy liability limits above the UM/UIM minimum, Vermont law requires your UM/UIM limits to match them unless you choose otherwise. The UM coverage also includes a property damage part, capped per claim, with a small deductible. Our [uninsured motorist coverage guide](https://statecover-guide.com/coverage/uninsured-motorist/) explains claims in more detail.

## The low property damage minimum

Vermont's property damage minimum of $10,000 is small next to the price of most vehicles on the road, which makes it the part of a minimum policy most likely to run out. Property damage liability pays for the other car, plus anything else you hit, such as a fence or a utility pole.

For example, if you slide on ice and total a $30,000 pickup, a policy at the $10,000 minimum pays only up to that limit. The owner, or their insurer, can then ask you for the rest. A quote with and without higher property damage limits shows what the extra protection would cost you. Our [liability coverage guide](https://statecover-guide.com/coverage/liability/) shows how the limits fit together.

## Proof of insurance in Vermont

You must carry proof of financial responsibility whenever you drive a registered vehicle in Vermont. The law allows electronic proof on a phone, and showing it does not by itself let an officer look at anything else on the device.

| Situation | Rule in 23 V.S.A. 800 |
|---|---|
| Driving without the required insurance | Civil penalty of up to $500; treated as a traffic violation |
| Insured, but no proof with you | Civil penalty of up to $100 |
| Ticketed but you were insured | No conviction if you send proof that was in effect at the stop within 7 business days |

A lapse can also make your next policy more expensive. Our page on [car insurance lapses](https://statecover-guide.com/blog/car-insurance-lapse/) covers how insurers treat gaps.

## Is car insurance cheap in Vermont?

| Measure (2023) | Vermont | United States |
|---|---|---|
| Average spent per insured vehicle | $893.16 | $1,281 |
| Average liability + collision + comprehensive premium | $957.80 | $1,438 |

Yes, by national standards. Vermont is well below the national average on both NAIC measures. Its uninsured rate, estimated at 11.8%, is also below the national 15.4%. Neighbors work differently: [New York](https://statecover-guide.com/location/new-york/) is a no-fault state, and [New Hampshire](https://statecover-guide.com/location/new-hampshire/) does not require drivers to buy auto insurance at all. If you move between them, check the new state's rules with the [state minimums lookup](https://statecover-guide.com/tools/state-minimums/).

## What the crash data say about Vermont roads

Vermont's crash death rates are low, but the crashes that happen have a distinct profile. IIHS figures for 2024:

| Measure (2024) | Vermont | United States |
|---|---|---|
| Deaths per 100,000 people | 9.1 | 11.5 |
| Deaths per 100 million miles driven | 0.82 | 1.19 |
| Share of deaths that were speeding-related | 54% | 29% |
| Share of deaths on rural roads | 71% | 41% |
| Killed drivers over the legal alcohol limit (IIHS estimate) | 42% | 31% |

Speeding and rural roads both play a much larger role than nationally. Add winter conditions and wildlife, and collision and comprehensive coverage are worth weighing against their cost; see [winter driving and car insurance](https://statecover-guide.com/blog/winter-driving-and-car-insurance/) and [hitting a deer](https://statecover-guide.com/blog/hitting-a-deer/).

## FAQ

### What car insurance is required in Vermont?

Liability coverage of at least $25,000 per person, $50,000 per accident and $10,000 for property damage, plus combined uninsured/underinsured motorist coverage of at least $50,000 per person and $100,000 per accident.

### Why is Vermont's uninsured motorist minimum higher than its liability minimum?

Vermont's law sets UM/UIM at its own, higher floor. The effect is that your protection against uninsured and underinsured drivers is stronger than the minimum protection you owe others.

### Can I show proof of insurance on my phone in Vermont?

Yes. Vermont law allows proof of insurance on a portable electronic device. Using your phone for this does not by itself give consent to search it.

### What is the penalty for driving without insurance in Vermont?

A civil penalty of up to $500, handled as a traffic violation. Not carrying proof while insured can cost up to $100, but you avoid a conviction by showing valid proof within 7 business days.

### Is Vermont a no-fault state?

No. Vermont is an at-fault state: the driver who causes a crash is responsible for the other people's injuries and damage. Vermont does not require PIP.

## Sources

- [Vermont General Assembly, 23 V.S.A. 800](https://legislature.vermont.gov/statutes/section/23/011/00800) — liability minimums, proof of insurance and penalties
- [Vermont General Assembly, 23 V.S.A. 941](https://legislature.vermont.gov/statutes/section/23/011/00941) — UM/UIM minimums and the underinsured definition
- [Vermont Department of Financial Regulation](https://dfr.vermont.gov/) — insurance regulator and consumer help
- [Vermont Department of Motor Vehicles, Registrations](https://dmv.vermont.gov/registrations) — registration
- [NAIC, 2022/2023 Auto Insurance Database Report](https://content.naic.org/sites/default/files/publication-aut-pb-auto-insurance-database.pdf) — average costs
- [Insurance Information Institute, Facts + Statistics: Uninsured motorists](https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists) — uninsured estimates
- [IIHS, Fatality Facts 2024: State by state](https://www.iihs.org/research-areas/fatality-statistics/detail/state-by-state) — crash death data
- [Insurance Information Institute, Background on: Compulsory auto/uninsured motorists (financial responsibility limits by state table)](https://www.iii.org/article/background-on-compulsory-auto-uninsured-motorists), as of October 28, 2026
- [Insurance Information Institute, Background on: No-fault auto insurance](https://www.iii.org/article/background-on-no-fault-auto-insurance), as of October 28, 2026
- [NAIC, 2022/2023 Auto Insurance Database Report](https://content.naic.org/article/naic-releases-20222023-auto-insurance-database-report), as of February 13, 2026
- [Insurance Research Council, Uninsured and Underinsured Motorists: 2017–2023 (press release)](https://www.businesswire.com/news/home/20250220231032/en), as of February 20, 2025