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• Vermont Auto Insurance
• Required Liability Insurance in VT

Required Auto Insurance Laws in Vermont

Know the Minimum Mandatory Liability Laws for Auto Insurance in Vermont

Every state requires auto insurance liability coverage and Vermont is no exception, however, every state has its own laws, regulations and requirements regarding the types of coverage required and the minimum mandatory amounts.

The following information is provided by the Vermont Insurance Division in “A Consumer’s Guide to Buying Auto Insurance”.

Seven Main Coverages

In Vermont, an auto insurance policy is a package of seven main
types of “Mandatory” and “Optional” coverages, each with its own premium. The sum of
these premiums is the total cost of your policy.

Mandatory for all Vermont Auto Policies:

• Liability

LIABILITY COVERAGE is designed to protect you for injuries and damages to other people
and property caused by the negligent operation of your car. It protects you as the driver
“operator” of the car, as well as someone who had your permission to drive the car. When
purchasing liability insurance in Vermont you must buy at least the mandatory limits set
by law. In insurance terminology, a limit is the maximum amount of money your policy
will pay out, even if your losses are higher.

(Check out the Vermont minimum auto policy limits for specific amounts.)

• Uninsured/Underinsured Motorist

UNINSURED/UNDERINSURED MOTORIST (UM/UIM) provides coverage for bodily injury
to you and your passengers if you are involved in an accident caused by a driver who is
uninsured or underinsured.

Optional:

• Collision

COLLISION provides coverage for physical damage to your car. It generally includes a
deductible, which is the amount of money you pay out of pocket toward covering the loss.
Ask about the savings you might realize with a higher deductible. It can sometimes make
a significant difference in the cost of your premium, especially with newer vehicles. Your
collision premiums are based on the make, model and year of your car. Consider the fair
market value of your car vs. the cost of collision coverage. If your vehicle is financed, the
lien holder may require you to maintain full coverage.

• Other Than Collision (also know as Comprehensive)

OTHER THAN COLLISION (ALSO KNOWN AS COMPREHENSIVE) covers damage resulting
from something other than colliding with another vehicle. There is a deductible.

The following specified causes of damage are covered under this category:

• Glass breakage
• Fire, Wind, Vandalism, Theft, Hail, Water or Flood
• Missiles or falling objects
• Riot or civil commotion
• Contact with bird or animal (includes collision with deer or moose)
• Explosion or earthquake

• Medical Payments

MEDICAL PAYMENTS coverage insures drivers and their passengers for medical expenses
resulting from an auto accident. There is no deductible. This part of your policy covers
you regardless of whether the driver or injured person was at fault. Also covered are
members of the insured person’s household under the following circumstances:

• While they are passengers in other people’s cars
• When using public transportation
• If they are struck as a pedestrian by another vehicle

• Rental Reimbursement

RENTAL REIMBURSEMENT covers you for rental rates of $15 to $20 per day, for a specified
number of days. The additional premium for this coverage is usually minimal

• Towing and Labor

TOWING AND LABOR coverage pays the cost of towing or starting your car, subject to the
conditions of your policy. There is no deductible and the premium cost is usually small.