Vermont car insurance

Full-coverage car insurance in Vermont averages about $136 a month, or $1,629 a year. State-minimum coverage runs far less, close to $33 a month. That ranks Vermont as one of the most affordable markets in the country for car insurance.

In this article, you’ll learn how Vermont car insurance laws work, what the state minimum insurance requirements are, and how to shop for the best car insurance value.

Full coverage in Vermont averages about $136 a month ($1,629 a year), and the state minimum averages about $33 a month ($396 a year). Vermont is the 4^th cheapest state in the country for full coverage insurance, and the 3^rd cheapest for state minimum coverage.

Vermont requires a minimum of $25,000 in bodily injury liability coverage per person, $50,000 per accident, and $10,000 in property damage. (25/50/10 in insurance industry shorthand).¹

Additionally, every policy must also offer uninsured and under-insured motorist coverage of at least $50,000 per person and $100,000 per accident, with up to $10,000 for property damage, subject to a $150 deductible.²

This coverage steps in to pay your damages if you are involved in an accident with an uninsured driver, or a driver who carries no insurance. If you don’t want this coverage, or you want less of it, you must specifically decline it, in writing.

Vermont sets its uninsured and underinsured bodily injury minimum at 50/100, twice the state-mandated 25/50 liability minimum.²

Is Vermont’s state minimum coverage enough?

State minimum coverage may be enough to cover a minor fender-bender. But it’s nowhere near enough to protect you in the event of a serious accident involving a late-model car, injuries, or both.

If you accidentally total someone’s new or higher-value car, the damages could quickly overwhelm your liability protection.

For this reason, the Insurance Information Institute recommends most people hold much more liability insurance than the state minimum requirement.³

Do you need Medical Payments Insurance (MedPay) in Vermont?

Medical payments coverage, or MedPay, is optional in Vermont. It pays medical bills for you and your passengers after a crash, no matter who was at fault.⁴

MedPay pays fast and with no deductible, and it covers passengers whose own health insurance is thin. Limits are usually low, so keep strong health and liability coverage as your main protection and use MedPay to fill the gaps.

USAA is currently the cheapest carrier in the state, with average premiums running $83 per month. However, USAA membership is restricted to U.S. military servicemembers, veterans, and select family members.

Among the carriers available to the general public, Nationwide and GEICO are the next cheapest, at $93 and $94, respectively, followed closely by a regional carrier, Patrons Co-op Fire.

The priciest carrier here runs more than three times the cheapest for the same driver. Luva compares Vermont carriers on your details so you can see where your profile lands.

Every insurance company sets prices in its own way. But the most important factors are your driving record, age, credit history, location, mileage, vehicle, and carrier. 

• Driving record. Speeding tickets, at-fault accidents, and DUI convictions all increase your premiums. See the table below to see how much your premiums could go up.

• Age. Teen drivers pay much more than adults. Nationally, a 16-year-old averages roughly $757 a month for full coverage, while premiums average about $191 for a 35-year-old.

• Credit. Vermont drivers with poor credit average about $277 a month, versus roughly $112 for those with very good or excellent credit. This makes personal credit history one of the biggest variables in setting car insurance premiums – and one you can potentially do a lot to control.

• Location. Urban and high-crime areas tend to have higher premiums.

• Vehicle. Some vehicles are safer than others in a crash. Some also cost more to repair than others. These factors are reflected in car premiums.

How do violations affect Vermont car insurance rates?

A speeding ticket adds about $20 a month compared to a clean record, an at-fault accident adds about $57, and a DUI causes premiums to more than double.

The best way to find cheap car insurance in Vermont is to compare quotes from multiple insurance carriers. Here are a few tips:

• Explore discounts. Insurers routinely offer rate discounts for things like low mileage, installed safety features, good grades, insuring multiple cars, bundling car insurance and homeowner’s or renter’s insurance with the same company, and more.

• Enroll in a telematics program. Consider a telematics program if you are a skilled and cautious driver, or if you drive relatively few miles, mostly in daylight. However, if you are a poor driver, some carriers may use telematics data to increase your premium.

• Choose a higher deductible. Increasing your deductible from $500 to $1,000 can meaningfully lower your premiums. But don’t lower it so much that you can’t afford to recover quickly from a covered loss.

• Shop around. Re-compare after key milestones or life changes such as getting married, relocating, getting a new car, improving your credit score, an at-fault accident or DUI conviction, or having a violation age off your record.

Answer a few questions, and Luva pulls quotes from multiple Vermont carriers on matching coverage, so you can compare rates and coverage differences and decide from one place.