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

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 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 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.

A lapse can also make your next policy more expensive. Our page on car insurance lapses covers how insurers treat gaps.

Is car insurance cheap in Vermont?

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 is a no-fault state, and 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.

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:

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 and hitting a deer.