The Complete Guide to Vermont Car Insurance
Lemonade is on the way to the Green Mountain State and we’ll let you know as soon as we arrive! In the meantime, we’ll help you navigate all things VT car insurance like rates, requirements, and throw in smart shopping tips.
How much does car insurance cost in Vermont?
Car insurance in Vermont averages $128/month for full coverage, but your actual rate depends on where you live, what you drive, and your driving record.
Here’s what drivers pay in major cities:
| City | Average cost of car insurance |
|---|---|
| Burlington | $121 |
| South Burlington | $120 |
| Rutland | $123 |
| Essex Junction | $122 |
| Bennington | $128 |
Source: ValuePenguin
Why is car insurance so low in Vermont?
Vermont drivers face unique risks that drive insurance costs
Uninsured drivers
8.8% of drivers in Vermont are uninsured vs. 13% nationally, lowering costs for everyone else.
Car theft
FBI data shows there were 424 reported motor vehicle thefts in 2024 in VT, down 29% from the previous year.
Natural disasters
VT has a very low FEMA disaster rating of 9, lowering comprehensive coverage costs, though inland flooding and winter weather are still threats.
What car insurance do I need in Vermont?
All Vermont drivers must carry minimum insurance coverage to legally drive.
Here’s what the state requires:
| Required minimum coverages for Vermont drivers | Minimum amount required | What’s covered | What’s not covered |
|---|---|---|---|
| Bodily injury liability | $25,000 (per person) $50,000 (per accident) | Medical bills, lost wages, and other costs when you hurt someone else in an accident | Your own injuries, damage to your car, amounts above your policy limits |
| Property damage liability | $10,000 | Damage you cause to other people’s cars, fences, buildings, and property | Damage to your own car, your own property, amounts above your policy limits |
| Uninsured/underinsured Motorist Property Damage | $10,000 | Car damage caused by drivers with no insurance OR not enough insurance | Bodily injuries, may be limited by state rules, may have deductibles |
| Uninsured/Underinsured Motorist Bodily Injury | $50,000 (per person) $100,000 (per accident) | Your injuries caused by drivers with no insurance OR not enough insurance | Car damage, amounts above your limits |
What additional car insurance coverages are offered in Vermont?
Beyond state minimums, these optional coverages provide
extra protection for Vermont drivers
Collision coverage
Pays to repair or replace your car if it's damaged in an accident with another vehicle or object like a fence or guardrail.
Read moreComprehensive coverage
Covers damage to your car from non-collision events like theft, vandalism, hail storms, flooding, or hitting an animal.
Read moreRental car reimbursement
Pays to cover alternative transportation while your car's being repaird. Specific coverage varies by insurer
Read moreWhat does (and doesn’t) car insurance cover in Vermont?
Car insurance protects you financially in many situations, but it does not cover everything.
- Vandalism
- Fire damage
- Weather damage
- Theft
- Injuries to other people
- Damage to property
- Damage from a collision
- Fender benders
- Rental car reimbursement
- Towing
- Roadside assistance
- Windshield damage
Your insurance won’t cover oil changes, engine problems, stolen personal items like your purse, or damage from mountain trail riding
How much car insurance do I need in Vermont?
You need enough coverage to protect yourself financially when accidents happen. If your car needed major repairs, could you afford these local Vermont labor rates? Keep in mind, parts and materials cost extra.
| City | Body repair | Frame repair | Mechanical repair | Paint repair |
|---|---|---|---|---|
| Rutland | $75 | $82 | $132 | $75 |
| Bennington | $123 | $143 | $209 | $82 |
| Brandon | $75 | $82 | $132 | $75 |
| Castleton | $75 | $82 | $132 | $75 |
| Fair Haven | $75 | $82 | $132 | $75 |
Source: Caliber
What happens if I drive without insurance in Vermont?
Vermont takes uninsured driving seriously, and the penalties add up fast.
Fines
Up to $500 for violations, up to $100 for no proof of insurance.
Suspension
License suspended until proof of insurance provided.
Jail time
Vermont uses administrative penalties instead of jail time for insurance violations.
What do you need to get a car insurance quote in Vermont?
You’ll need some basic information like your driver’s license number and your car’s VIN, but with the right details handy, getting quotes is quicker than your morning coffee run. Here’s your checklist:
Your Details
- Driver's license number
- Social Security number (for credit check)
Your Car
- VIN number (found on your dashboard or door frame)
- Current registration or title
Your History
- Any accidents or tickets from the past 5 years
- Current insurance company and policy number (if you have coverage)
Your Preferences
- How much coverage you want
- Deductible amount you're comfortable with
- Monthly budget range
How does car insurance work in Vermont?
Think of car insurance as a financial safety net for when things go wrong on the road.
Pick your protection
Shop around and choose coverage that fits your budget.
Make payments
Keep up with monthly payments and you’re covered.
When S%!t happens
File a claim, pay your deductible, and your insurer covers the rest up to your limits.
Vermont car insurance FAQs
Is Vermont a no-fault state?
No, Vermont isn’t a no-fault state. Vermont follows at-fault insurance. If you’re injured, you can pursue claims against the responsible party. PIP coverage is optional.
Do I need insurance to register a car in Vermont?
Yes, Vermont requires proof of auto insurance to register a vehicle. You must carry minimum liability coverage. Insurance is verified during registration — vehicles can’t be registered without coverage.
What are the top risks for driving in Vermont?
Vermont’s extended winter weather creates slippery, dangerous roads for most of the year. Rural areas have frequent wildlife crossings and inadequate lighting on back roads at night. Steep, winding mountain roads add complexity to already challenging conditions.
How long do I have to report an accident in Vermont?
Vermont requires accidents involving injury, death, or property damage over $3,000 to be reported immediately to police. If law enforcement doesn’t investigate, you must file a report within 72 hours. The report goes to the Department of Motor Vehicles. Insurance reporting should be prompt.
What are the top safety tips for driving in Vermont?
In Vermont, slow down on winding country roads, especially in winter. Watch for wildlife at night. Take it easy in snow and ice. Drive carefully on narrow roads where you can’t see far ahead.
All coverage is subject to individual policy limits, terms, and conditions. Any hypothetical examples used in Lemonade editorial content are purely expositional.
*Uninusured driver rate sourced from ValuePenguin: https://www.valuepenguin.com/auto-insurance/uninsured-motorist-statistics sourced February, 2026
**Theft rate sourced from the FBI’s crime data explorer: https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/query sourced February, 2026
***Disaster risk rating sourced from FEMA’s Disaster Resilience Hub: https://resilience-fema.hub.arcgis.com/datasets/national-risk-index-states-expected-annual-loss/explore sourced February, 2026
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