Vermont Minimum Car Insurance Requirements (2026)
Vermont requires every registered vehicle to carry at least 25/50/10 liability car insurance: $25,000 bodily injury per person, $50,000 bodily injury per accident, and $10,000 property damage. Vermont also mandates uninsured and underinsured motorist coverage of at least 50/100.
Vermont Minimum Liability Limits Explained
Under Vermont law (23 V.S.A. Section 800), every motor vehicle registered and operated in the state must be covered by a liability insurance policy that meets three minimum limits, commonly written as 25/50/10:
- $25,000 for bodily injury or death of one person in a single accident.
- $50,000 for total bodily injury or death when more than one person is hurt in the same accident.
- $10,000 for property damage you cause to another person's vehicle or property.
Liability coverage pays other people when you are at fault in a crash. It does not pay for your own injuries or repairs to your own car. These are floor amounts set by statute, not recommended amounts. A single serious injury claim or a totaled late-model vehicle can easily exceed $25,000 or $10,000, leaving you personally responsible for the balance. Vermont drivers are free to buy higher limits, and most insurers offer 50/100/50, 100/300/100, or higher packages for a modest premium increase. Because Vermont also layers on mandatory uninsured motorist protection, understanding how these pieces fit together is essential before you choose a policy.
Vermont Is an At-Fault (Tort) State
Vermont follows the traditional at-fault, or tort, system for car accidents. That means the driver who causes a crash is legally responsible for the resulting injuries and property damage, and that driver's liability insurance pays the victims. Vermont does not use the no-fault model found in states like Minnesota, North Dakota, or Hawaii, so it does not require personal injury protection (PIP).
After a collision, an injured person can file a claim against the at-fault driver's liability policy, use their own coverages, or pursue a lawsuit. Vermont applies a modified comparative negligence rule: an injured party can recover damages only if they are found to be no more than 50 percent at fault, and any award is reduced by their share of the blame. Because compensation flows from the responsible party, carrying adequate liability limits protects both accident victims and your own personal assets from a judgment.
Key data
| Factor | Filed value | Source |
|---|---|---|
| Vermont minimum liability limits (BI per person / BI per accident / property damage) | 25/50/10 ($25,000 / $50,000 / $10,000) | Insurance Information Institute (III) · Jul 2026 |
| Vermont minimum uninsured/underinsured motorist bodily injury limits | $50,000 per person / $100,000 per accident | Vermont Department of Motor Vehicles · Jul 2026 |
| Estimated share of uninsured drivers in Vermont (2023) | 11.8% | Insurance Information Institute (III) · Jul 2026 |
Required Uninsured and Underinsured Motorist Coverage
Vermont is one of the states that legally requires uninsured and underinsured motorist (UM/UIM) coverage on every auto policy. Under 23 V.S.A. Section 941, insurers must include UM/UIM bodily injury protection of at least $50,000 per person and $100,000 per accident, along with up to $10,000 in uninsured motorist property damage coverage.
This coverage steps in when the at-fault driver has no insurance, not enough insurance, or cannot be identified (such as a hit-and-run). It pays for your injuries and, within the property-damage limit, your vehicle damage. Notably, Vermont sets the UM/UIM minimums higher than the basic liability minimums, so your policy protects you against uninsured drivers even more than it protects the people you might hit. If you raise your liability bodily injury limits above 50/100, your UM/UIM limits generally rise to match unless you direct the insurer otherwise in writing. With roughly one in nine Vermont drivers uninsured, this coverage is far from a formality.
No PIP Requirement and Optional Coverages
Because Vermont is a tort state, it does not require personal injury protection or medical-payments coverage. Your own medical bills after an at-fault crash are not automatically covered by the state minimum policy. Many Vermont drivers add optional medical payments (MedPay) coverage, which pays medical and funeral expenses for you and your passengers regardless of fault, to fill that gap.
Other coverages remain optional under state law but are often required by a lender or lease. Collision pays to repair or replace your vehicle after a crash regardless of fault, and comprehensive covers non-collision losses such as theft, vandalism, fire, flooding, and Vermont's common deer strikes. Rental reimbursement, roadside assistance, and gap coverage are also widely available add-ons. None of these are mandated by the DMV, but they are worth weighing against the cost of repairing or replacing your car out of pocket, especially given Vermont's harsh winter driving conditions.
Penalties for Driving Without Insurance
Operating an uninsured vehicle is illegal in Vermont, and the consequences can be costly. If you cannot show proof of the required liability and UM/UIM coverage, the Vermont DMV can suspend your driving privileges and vehicle registration until valid coverage is documented and any fines are paid.
Vermont conducts insurance verification and may request proof at registration, at a traffic stop, or after a crash. Drivers found operating without insurance face fines, potential suspension, and reinstatement fees to restore their license and registration. If you are caught driving uninsured or are involved in an accident without coverage, the DMV can also require you to file proof of financial responsibility (an SR-22) going forward. The financial exposure goes well beyond the ticket: without liability insurance, you personally owe every dollar of another party's injury and property claims, which can reach tens or hundreds of thousands of dollars. Maintaining continuous coverage is far cheaper than any of these outcomes.
SR-22 and Proof of Financial Responsibility
An SR-22 is not a type of insurance. It is a certificate your insurance company files directly with the Vermont DMV to prove you carry at least the state-required liability limits. Vermont requires an SR-22 filing for higher-risk drivers reinstating after events such as a DUI conviction, an at-fault accident while uninsured, or a suspension for failing to maintain coverage.
In Vermont, the SR-22 must be kept continuously for three years, generally measured from the date your license is reinstated rather than the date of the offense. Your license and registration are not restored until a valid certificate is on file, and the DMV accepts the certificate only from a licensed insurer, not from an agent. If your policy lapses, is canceled, or expires during that window, the insurer notifies the DMV, which can suspend you again and restart the three-year clock. There is no separate SR-22A filing type in Vermont; the standard SR-22 certificate is the mechanism used. Non-owner SR-22 policies are available for drivers who must file but do not own a vehicle.
How Much Coverage You Really Need
The 25/50/10 minimum is the lowest amount that keeps you legal, but it is rarely enough to protect your finances. Modern medical costs and vehicle values mean a serious crash can generate claims far above the state floor. If your liability limits are exhausted, the injured party can pursue your wages, savings, and other assets for the difference.
Many insurance professionals suggest Vermont drivers with any assets carry bodily injury liability of at least 100/300 and property damage of 50/100, and consider an umbrella policy for additional protection. Because Vermont ties your UM/UIM limits to your liability limits, buying higher liability also strengthens the coverage that protects you against the state's many uninsured and underinsured drivers. Adding MedPay, collision, and comprehensive rounds out a policy that actually pays when you need it. The premium difference between minimum limits and robust limits is often smaller than drivers expect, making higher coverage one of the best values in a policy.
How to Compare Vermont Car Insurance Quotes
Premiums for the exact same coverage can vary widely between insurers, so comparison shopping is the single most effective way to lower your cost. When you gather quotes, make sure every quote uses the identical limits and deductibles so you are comparing the same protection, not just the lowest headline price.
Start by confirming each quote meets Vermont's 25/50/10 liability and 50/100 UM/UIM minimums, then price the higher limits you actually want. Ask about discounts for bundling home and auto, safe-driving records, low annual mileage, anti-theft devices, and paperless billing. Review the insurer's complaint record and financial strength before you buy, and re-shop your policy every one to two years or after a major life change such as moving, adding a driver, or buying a new vehicle. Reading the declarations page carefully ensures the coverages, limits, and any required SR-22 filing are all in place before you rely on the policy.
Frequently asked questions
What is the minimum car insurance required in Vermont?
Vermont requires liability coverage of at least 25/50/10: $25,000 bodily injury per person, $50,000 bodily injury per accident, and $10,000 property damage. In addition, every policy must include uninsured and underinsured motorist (UM/UIM) coverage of at least $50,000 per person and $100,000 per accident, plus up to $10,000 in uninsured motorist property damage. These limits are set by 23 V.S.A. Sections 800 and 941.
Is Vermont a no-fault state?
No. Vermont is an at-fault, or tort, state. The driver who causes a crash is responsible for the resulting damages, and personal injury protection (PIP) is not required. Vermont does, however, mandate uninsured and underinsured motorist coverage on every auto policy, which is unusual and provides extra protection against drivers who lack adequate insurance.
Does Vermont require uninsured motorist coverage?
Yes. Under 23 V.S.A. Section 941, Vermont requires uninsured and underinsured motorist coverage on every auto policy, with minimum bodily injury limits of $50,000 per person and $100,000 per accident and up to $10,000 in uninsured motorist property damage. If you buy higher liability limits, your UM/UIM limits generally rise to match unless you direct otherwise in writing.
Does Vermont require an SR-22?
Yes, for certain high-risk drivers. Vermont uses the SR-22 certificate, which your insurer files with the DMV to prove you carry the required liability coverage. It is typically required after a DUI, an uninsured at-fault accident, or a suspension for lapsed insurance. Vermont requires the filing to be maintained continuously for three years, generally from the date of reinstatement, and the certificate must come from a licensed insurance company.
What happens if I drive without insurance in Vermont?
Driving an uninsured vehicle is illegal in Vermont. The DMV can suspend your driving privileges and vehicle registration until you provide valid proof of coverage and pay any fines and reinstatement fees. You may also be required to file an SR-22. Worse, without liability insurance you are personally responsible for every dollar of another party's injury and property damage claims.
Is the Vermont minimum coverage enough?
It keeps you legal, but for most drivers it is not enough. A serious injury or a totaled newer vehicle can generate claims well above $25,000 or $10,000, and you would owe the difference out of pocket. Many advisors recommend at least 100/300 bodily injury and 50/100 property damage, plus MedPay, collision, and comprehensive, especially since higher liability limits also raise your protective UM/UIM coverage.
Sources cited
- Insurance Information Institute (III) — captured Jul 2026
- Vermont Department of Motor Vehicles — captured Jul 2026
- Vermont Department of Financial Regulation - Insurance Division — captured Jul 2026
- Vermont Statutes - 23 V.S.A. Section 941 (UM/UIM) — captured Jul 2026
- National Association of Insurance Commissioners - Auto Insurance — captured Jul 2026
