What car insurance costs in Vermont

Vermont's premium, coverage by coverage

Each year the National Association of Insurance Commissioners (NAIC) reports what insurers collected in every state. Its newest state figures, for 2023, show an average Vermont expenditure of $893 per insured car, up 13% from $793 in 2022. That average mixes liability-only cars with fully insured ones. For a car carrying all three main coverages, the combined premium was $958.

Liability, at $381, is about 48% below the U.S. figure, the widest gap of any line. Collision and comprehensive are also lower, by roughly 17% and 20%. One result: in Vermont the average collision premium ($385) is slightly higher than the average liability premium, the reverse of the national pattern. If you drive a newer car, the physical-damage part of the bill is likely where most of your money goes; our page on how the car itself affects the price explains why.

The coverage Vermont law requires

Under 23 V.S.A. § 800, you may not drive in Vermont without liability insurance of at least $25,000 for one person, $50,000 for two or more people and $10,000 for property damage in one crash. You must carry proof of coverage while driving, and a violation can bring a civil penalty of up to $500.

• Uninsured/underinsured motorist coverage is mandatory on every Vermont auto policy, at no less than $50,000 per person and $100,000 for two or more people injured, plus $10,000 for property damage subject to a $150 deductible.
• If you buy liability above the minimum, your uninsured motorist limits must match it unless you direct otherwise, so raising one usually raises the other.
• Medical payments, collision and comprehensive are optional under state law. A lender will normally require collision and comprehensive on a financed car.

A 25/50/10 policy pays at most $10,000 for the other driver's car, which may not cover a newer vehicle. Our guide to limits and deductibles shows what a step up in limits involves.

Credit and pricing in Vermont

The Department of Financial Regulation's consumer guide to auto insurance says each company sets its own premiums by making its own judgments about a set of risk categories. Because companies weigh those categories differently, quotes for the same driver can differ from one insurer to the next.

The guide also notes that credit history has become a rating element for most companies, which turn it into an insurance score. An insurer that uses it must describe the elements of the credit history it relies on. The department advises checking your credit report once a year. State law, 8 V.S.A. § 4727, sets the limits: an insurer can't deny, cancel or nonrenew a policy, or set a renewal rate, solely on credit; it must re-rate you on a current report if you ask at your annual renewal; an adverse action notice must give up to four main reasons; and you can ask for an exception if events such as a declared catastrophe or identity theft hurt your credit. Read more about credit-based insurance scores.

Turned down? The Vermont plan

A driver no company will insure can apply to the Vermont Automobile Insurance Plan, which the department calls the assigned risk plan. Prices there are generally higher than in the regular market, so it makes sense to shop again once your record is cleaner. See our guide to assigned risk plans.

Ways to cut a Vermont premium

1. 1 Get quotes on identical coverage. Because each company weighs risk differently, two or three quotes on the same limits and deductibles show you the spread.
2. 2 Ask about the discounts the department mentions: buying home and auto from one company, driver training or good student credits for young drivers with a B average or better, regular carpooling, airbags, automatic seat belts and anti-lock brakes. Amounts vary by company.
3. 3 Weigh a higher deductible. The deductible break-even calculator shows how many claim-free years it takes for the lower premium to pay for the extra risk.
4. 4 Call the Insurance Division if a company treats you unfairly. File a complaint online or by mail, or call 800-964-1784 (802-828-3302 for insurance consumers) for help.

Questions drivers ask