Vermont Auto Insurance Requirements: 25/50/10 & Mandatory UM/UIM at 50/100 (2026)

Quick Answer: Vermont Minimum Auto Insurance

Vermont requires all registered vehicles to carry minimum liability insurance. The state minimums are 25/50/10 for liability — but Vermont stands out because it also mandates uninsured AND underinsured motorist coverage at $50,000/$100,000, which is higher than the base liability minimum:

Vermont is one of the few states where required UM/UIM limits exceed the base liability minimums. Vermont is also an at-fault (tort) state — the driver who caused the accident is responsible for damages.

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Vermont Auto Insurance Law

Vermont's auto insurance requirements are governed by 23 VSA § 800 (Financial Responsibility) and 8 VSA Chapter 113 (Insurance). Every vehicle registered in Vermont must carry continuous coverage from a carrier licensed in the state.

What makes Vermont distinctive in the US insurance landscape: the legislature deliberately set uninsured and underinsured motorist minimums above the base liability minimums. The reasoning is protective — if you're injured by a driver carrying only the minimum liability ($25,000), you'd have up to $50,000 in UM/UIM coverage to bridge the gap.

Vermont's relatively small population and rural character mean lower overall accident frequency than dense urban states. But moose, deer, and black bear crossing rural roads are genuine hazards — comprehensive coverage is worth considering for any Vermont driver.

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Required Coverage Breakdown

Liability Insurance (25/50/10)

Liability covers harm you cause to others. The 25/50/10 breakdown:

• $25,000 per injured person (maximum one person can recover)
• $50,000 per accident total (cap across all injured parties)
• $10,000 property damage (pays for the other vehicle or property)

Vermont's $10,000 property damage minimum is on the low end nationally and hasn't kept pace with vehicle values. Most modern vehicles cost well above $10,000 to replace. Upgrading property damage coverage is strongly recommended.

Uninsured Motorist Coverage (Required — 50/100)

Vermont requires uninsured motorist bodily injury at $50,000 per person / $100,000 per accident under 23 VSA § 941. This coverage activates when:

• The at-fault driver has no insurance
• A hit-and-run driver injures you and cannot be identified

The UM minimum being twice the liability minimum is intentional. Vermont lawmakers recognized that a driver with only 25/50 liability provides inadequate protection to victims — so the state ensured all drivers have at least $50,000/$100,000 to protect themselves.

Underinsured Motorist Coverage (Required — 50/100)

Vermont also mandates underinsured motorist coverage at $50,000/$100,000 under 8 VSA § 4203a. UIM applies when the at-fault driver has insurance, but their limits are lower than your damages.

Example: You're injured by a driver with minimum 25/50 coverage. Your medical bills total $60,000. Their policy pays $25,000. Your UIM coverage covers the remaining $35,000 up to your $50,000 UIM limit.

Few states mandate both UM and UIM at limits exceeding the liability minimums — Vermont's approach offers drivers meaningfully stronger baseline protection than most states.

Medical Payments Coverage

Vermont requires insurers to offer medical payments coverage, but drivers can decline it. MedPay covers your own medical bills regardless of fault, without waiting for a liability determination. Given Vermont's rural roads and the time emergency response can take in remote areas, MedPay is worth retaining.

Coverages NOT Required (But Worth Having)

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Vermont Is an At-Fault State

Vermont uses a traditional tort (at-fault) system. When an accident occurs:

• The driver found at fault is responsible for damages
• Injured parties file claims against the at-fault driver's liability insurance
• There is no mandatory PIP (Personal Injury Protection) requirement
• Injured parties can sue the at-fault driver in Vermont civil court for damages exceeding insurance limits

This means fault determination matters significantly in Vermont. If you're partially at fault, Vermont uses a modified comparative negligence rule — you can recover damages only if you are less than 50% responsible for the accident.

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Wildlife Hazard: A Vermont-Specific Consideration

Vermont consistently ranks among the top states for deer-vehicle collisions per registered vehicle. Moose collisions are less common but far more dangerous — a moose can weigh over 1,000 pounds and typically rolls into the vehicle cab at highway speed rather than being pushed aside like a deer.

Insurance implication: Comprehensive coverage pays for wildlife strikes. Collision coverage does not (animal strikes are not collisions with other vehicles or objects). Vermont drivers who decline comprehensive coverage take on the full cost of repairing or replacing a vehicle after a moose or deer strike.

Months with highest wildlife collision risk in Vermont: October through December (deer rutting season) and May through June (moose calving season on roadsides).

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Who Must Carry Insurance in Vermont

Required for:

• All motor vehicles registered in Vermont
• Out-of-state vehicles establishing Vermont residency
• Commercial vehicles operating in the state

Special situations:

• Seasonal vehicles: Vermont requires continuous coverage while a vehicle is registered. Surrendering plates to the DMV is the method for pausing coverage without violating requirements
• Antique vehicles: Registered antique/collector vehicles still require insurance; specialty classic car policies are available
• Farm vehicles: Certain off-road farm equipment may be exempt, but any vehicle operated on a public road requires coverage

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Penalties for Driving Without Insurance in Vermont

Under 23 VSA § 800, driving without required financial responsibility is a traffic violation. Vermont takes enforcement seriously — the DMV's electronic verification system tracks policy status and acts when lapses are reported.

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SR-22 Requirements in Vermont

An SR-22 certificate is filed by your insurer with the Vermont DMV and certifies you carry required coverage. It is required after:

• DUI or DWI conviction
• At-fault accident without insurance
• Certain license suspension events
• Serious traffic violations accumulating points

SR-22 must be maintained for 3 years from the triggering event. A lapse during that period triggers immediate license re-suspension. Not all carriers offer SR-22 policies in Vermont.

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Recommended Coverage Beyond Minimums

Vermont's UM/UIM requirements are stronger than most states, but the liability minimums — especially $10,000 property damage — are dated.

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How to Get Auto Insurance in Vermont

When shopping for Vermont auto coverage:

• Request quotes from multiple carriers licensed in Vermont
• Choose liability at or above 100/300/100 to meaningfully exceed state minimums
• Keep UM/UIM at or above your liability limits
• Add comprehensive for wildlife collision protection
• Consider MedPay given rural road response times

Premium factors in Vermont:

• Rural ZIP codes may have lower base rates but higher wildlife collision premiums
• Burlington and Chittenden County see somewhat higher rates than rural areas
• Annual mileage matters — Vermont's rural roads mean many drivers rack up significant miles
• Winter driving history and vehicle type affect rates
• Driving record and credit score (legal rating factors in Vermont)

Vermont drivers regularly cross into New Hampshire, Massachusetts, and New York. Standard Vermont policies cover these states, though coverage in NH doesn't require you to meet NH's no-mandate standard.

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FAQ

Why does Vermont require UM/UIM at higher limits than the liability minimum?

Vermont legislators set UM/UIM minimums at $50,000/$100,000 — double the liability BI minimum — to ensure drivers have meaningful protection when hit by minimally insured or uninsured drivers. The $25,000 liability minimum was seen as inadequate victim protection, so UM/UIM was set higher.

Does Vermont require Personal Injury Protection (PIP)?

No. Vermont is an at-fault state without mandatory PIP. Your own medical bills after an accident are covered by your health insurance, any MedPay coverage you carry, or through a claim/lawsuit against the at-fault driver.

Is comprehensive coverage required in Vermont?

No — but given the moose and deer collision risk in Vermont, declining comprehensive coverage means absorbing the full cost of wildlife strikes out of pocket. The actuarial risk in Vermont is higher than most US states.

Do I need to carry SR-22 insurance if I move to Vermont from another state?

If you had an SR-22 requirement in your previous state, Vermont may honor that requirement or have its own. Disclose prior violations when obtaining Vermont coverage, and contact the Vermont DMV to confirm whether an SR-22 filing is required.

Can I drive year-round in Vermont with a seasonal insurance policy?

No. Vermont requires continuous coverage for registered vehicles. To legally avoid coverage during winter storage, you'd need to surrender your registration plates to the DMV for the storage period.

What is Vermont's uninsured driver rate?

Vermont has one of the lower uninsured driver rates in the US — estimated at 7–9%. Despite this, the mandatory $50,000/$100,000 UM/UIM requirement ensures all Vermont drivers are protected even in the minority of encounters with uninsured drivers.

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Summary

Vermont auto insurance at a glance:

• Minimum liability: 25/50/10
• Required UM/UIM: 50/100 — higher than the liability minimum (unique in the US)
• Fault system: At-fault (tort) — no mandatory PIP
• Wildlife hazard: Moose and deer strikes are common — comprehensive coverage is strongly advised
• Property damage minimum: $10,000 — very low for current vehicle values, upgrade recommended
• SR-22: Required after DUI, uninsured at-fault accidents, and certain violations

Vermont's mandatory UM/UIM above the liability minimum makes its baseline coverage stronger than most states. However, the $10,000 property damage limit is genuinely low — upgrading that specific coverage is one of the more cost-effective improvements Vermont drivers can make.

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Important Disclaimer

This guide provides general information about Vermont auto insurance requirements based on publicly available sources. This is not legal advice. Requirements can change, and individual circumstances vary. Always verify current requirements with the Vermont Department of Motor Vehicles (dmv.vermont.gov) and the Vermont Department of Financial Regulation, and consult with a licensed insurance professional for advice specific to your situation.

Last verified: March 2026
Sources: Vermont DMV (dmv.vermont.gov), 23 VSA § 800, 23 VSA § 941, 8 VSA Chapter 113, Vermont Department of Financial Regulation