By Brad Burton, Founder & Editor·Updated June 2026·How we research this

Vermont Car Insurance in 2026

Vermont sits in a narrow club of states where a clean-record driver paying for full coverage can still come in under $1,500 a year. Low population density, very few uninsured drivers (roughly 3–7% versus a 14% national average), and the absence of mandatory Personal Injury Protection all keep rates manageable. That said, the state does have mandatory requirements — and one of them surprises people: your uninsured/underinsured motorist limits must actually exceed your liability limits.

Vermont is a traditional at-fault (tort) state. If you cause a crash, your liability coverage pays for the other party's damages. There is no PIP requirement. Lawsuits against at-fault drivers are fully allowed, which is one more reason carrying more than the state minimum is worth considering.

Vermont Minimum Coverage Requirements

These limits are set by Vermont law and required on every registered vehicle. Driving without them is illegal and can result in license suspension.

Coverage Type Minimum Required What It Covers
Bodily Injury Liability — per person $25,000 Medical costs for one person you injure
Bodily Injury Liability — per accident $50,000 Total BI payout per accident (all injured parties)
Property Damage Liability $10,000 Damage to the other driver's vehicle or property
Uninsured/Underinsured Motorist BI — per person $50,000 Your injuries when the at-fault driver has no/low insurance
Uninsured/Underinsured Motorist BI — per accident $100,000 Total UM/UIM payout per accident
Uninsured/Underinsured Motorist PD $10,000 Your vehicle damage from an uninsured at-fault driver

Note on UM/UIM limits: Vermont requires uninsured/underinsured motorist bodily injury coverage at 50/100 — double the 25/50 liability BI minimums. This is intentional: the legislature set UM/UIM limits higher than liability minimums so Vermont drivers have better protection from the uninsured drivers they encounter. Source: Vermont DFR — Auto Insurance.

What Drives Vermont Premiums

Geography Works in Your Favor

Vermont has fewer than 650,000 residents spread across 9,000 square miles. Outside of Burlington, traffic density is low. Fewer cars on rural two-lane roads translates directly to fewer accidents and lower claim frequency — the core input in every insurer's pricing model.

One of the Country's Lowest Uninsured Rates

Only about 3–7% of Vermont drivers are uninsured, compared to a 14% national average tracked by the Insurance Research Council. That matters because in states where 20%+ of drivers lack coverage — Florida and Mississippi, for example — everyone else's UM/UIM coverage absorbs more uninsured-driver claims, pushing premiums higher. Vermont doesn't have that problem.

No PIP Requirement

No-fault states require Personal Injury Protection, which pays your own medical bills after any accident regardless of fault. Adding PIP meaningfully raises the cost of a policy. Vermont skips it entirely — you're in a tort system, so your health insurance handles your own injuries, and liability covers what you owe others.

Credit Scores Are a Factor

Vermont allows credit-based insurance scoring. Insurers use your credit history as a statistical predictor of claim likelihood. A driver with a low credit score can pay noticeably more than a driver with an identical record but stronger credit. If you're shopping for coverage, improving your credit score before getting quotes is worth doing.

Weather Is Relatively Benign

Vermont winters bring snow and ice, which raises collision risk seasonally. But the state has minimal hurricane exposure, no hail belt, and low flood risk compared to coastal or plains states. Comprehensive claims are infrequent relative to national averages, keeping that portion of full-coverage premiums lower.

Average Vermont Premium Ranges (2026 Estimates)

Rates below are labeled estimates drawn from published sources including Insurify, Experian, and Insure.com as of early-to-mid 2026. Your actual premium depends on your age, driving record, vehicle, credit score, and insurer. Consider these ranges a benchmark, not a quote.

Coverage Level Estimated Annual Range Estimated Monthly
Minimum liability only (25/50/10 + UM/UIM) $365 – $600 ~$30 – $50
Full coverage (liability + collision + comprehensive) $1,350 – $1,660 ~$113 – $138

Source note: These figures reflect published 2026 estimates for a 35-year-old driver with a clean record. Vermont consistently ranks among the two or three least expensive states nationally for car insurance. Rates vary significantly by insurer — shopping at least three quotes is the single most reliable way to find the bottom of your range.

Estimate Your Vermont Insurance Cost

Enter your driver profile and vehicle to get a personalized 2026 rate estimate.

Use the Free Calculator →

Frequently Asked Questions

What are Vermont's minimum car insurance requirements?
Vermont requires liability coverage of $25,000 per person / $50,000 per accident for bodily injury and $10,000 for property damage (25/50/10). Vermont also mandates uninsured/underinsured motorist coverage at $50,000 per person / $100,000 per accident for bodily injury and $10,000 for property damage — limits that exceed the liability minimums. Both coverages are required by law for every registered vehicle.
Is Vermont an at-fault or no-fault state for car insurance?
Vermont is an at-fault (tort) state. The driver who caused the accident is responsible for paying the injured party's damages. Victims can sue the at-fault driver directly. There is no Personal Injury Protection (PIP) requirement, which is one reason Vermont premiums are lower than in no-fault states.
Why is car insurance so cheap in Vermont?
Vermont combines low population density, a very low uninsured driver rate (around 3–7%, versus a 14% national average), moderate weather risk, and no mandatory PIP coverage. Fewer cars on rural roads means fewer accidents and lower claim frequency — which translates directly into lower premiums. Vermont regularly ranks as one of the two least expensive states nationally for auto insurance.
Can Vermont insurers use my credit score to set my premium?
Yes. Vermont allows credit-based insurance scoring. Insurers use it as a statistical predictor of claim likelihood. Improving your credit — paying down balances, avoiding late payments — can lower your car insurance premium over time. If your credit has improved since you last shopped, getting new quotes could reveal meaningful savings.