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Vermont is an at-fault (tort) state. Drivers must carry at least 25/50/10 in coverage, and the average full-coverage premium is $1,557 a year, 47% below the national average of $2,922. This guide covers what Vermont requires, what drivers pay, the rules on fault, uninsured drivers, penalties, teen drivers and phone use, and how to pay less.
| Minimum coverage | 25/50/10 |
| Fault system | At-fault (tort) |
| Average full coverage | $1,557 a year ($130 a month), 47% below the national average of $2,922 |
| Uninsured drivers | 11.8% (2023), the 29th highest rate of 51 |
| Filing after serious violations | SR-22 |
Vermont requires $25,000 bodily injury liability per person, $50,000 per crash, and $10,000 property damage liability (23 V.S.A. §800).
| Uninsured and underinsured motorist | Required, at least at the same limits: $25,000 per person, $50,000 per crash and $10,000 for property damage. |
The minimums are a legal floor, not a recommendation. Property damage limits in particular don't go far when a new car can cost more than the limit to replace, and anything above your limits is your personal responsibility. See how limits and deductibles work and every type of coverage explained.
The average full-coverage premium in Vermont is $1,557 a year, 47% below the national average of $2,922. That makes Vermont the 2nd cheapest of 49 (48 states plus D.C.; Alaska and Hawaii aren't in the data) (Experian, "Car Insurance Average Costs by State," published September 9, 2026; full coverage, 12 months to August 2026).
Within Vermont, prices still vary a lot by ZIP code, driving record and car, and 11.8% of drivers on Vermont roads were uninsured in 2023, so the coverage you choose matters as much as the premium.
Your own price depends on your ZIP code, age, driving record, car and coverage. Try our car insurance calculator with Vermont preselected for a personal estimate, and see what determines your car insurance cost.
Vermont uses modified comparative fault with a 51% bar: your damages are reduced by your share of the blame, and you recover nothing if you are more than 50% at fault. (Matthiesen, Wickert & Lehrer, "Contributory Negligence/Comparative Fault Laws in All 50 States," updated June 10, 2026)
An estimated 11.8% of Vermont drivers were uninsured in 2023, the 29th highest rate among the 50 states and D.C. (Insurance Research Council, uninsured motorist estimates for 2023, via Insurance Information Institute "Facts + Statistics: Uninsured motorists"). Uninsured and underinsured motorist coverage protects you when one of them hits you. See coverage types.
You must carry proof of insurance when you drive. Failing to carry it carries a civil penalty of up to $100. (23 V.S.A. §800)
Operating, or letting someone operate, a vehicle without the required insurance is a traffic violation with a civil penalty of up to $500. It also adds points to your driving record, and the DMV can require you to file proof of financial responsibility. (23 V.S.A. §800; Vermont DMV, "Insurance")
A conviction for driving uninsured also follows you into your next policy. In CarInsurance.com's rate analysis, it raised the average full-coverage premium in Vermont from $1,319 to $1,651 a year, an increase of 25% (CarInsurance.com, "Penalty for driving without insurance in every state," updated March 24, 2026; rate analysis).
Beyond the penalties, driving uninsured leaves you personally liable for any damage you cause. See what happens if you drive without car insurance.
When the Vermont DMV requires proof of financial responsibility, it accepts only an SR-22 certificate issued by the insurance company (not by an agent), and the filing must stay on record for at least three years. (Vermont DMV, "Insurance")
Vermont uses graduated driver licensing (Insurance Institute for Highway Safety, "Graduated licensing laws" table):
Adding a teen is usually the biggest single increase in a family's premium. Keeping them on the family policy, a good-student discount and a safe, modest car help most.
A distracted-driving ticket can count against your record and your premium. (Insurance Institute for Highway Safety, "Electronic device laws" table)
See how to compare car insurance quotes, or get quotes for your ZIP code.
For questions about a policy, a claim or an insurer's conduct, contact the Vermont Department of Financial Regulation. It handles consumer questions and complaints about insurers in Vermont.
AutoInsuranceQuery editorial team. Last reviewed: September 29, 2026.
