Vermont Auto Insurance Quotes and
Coverage Guide
Vermont Motor Vehicle Insurance
Questions & AnswersQ: Is auto insurance mandatory?
A: Vermont is the only state in the U.S. that does
not have a city with a population of at least 50,000
and the largest producer of maple syrup in the
nation, so you’d think everyone would be out
harvesting maple-tree sap, and it’d be hard for
drivers to find someone to smash into. But
apparently they do since Vermont says it is illegal
for a vehicle to be operated if it isn't covered by
a minimum amount of liability insurance – not maple
syrup.
Q: Is Vermont a "tort" state?
A: Yes. In Vermont, a tort state, there are no
restrictions on lawsuits. A driver or his/her
passengers can sue the syrup right off your waffle
for pain and suffering as well as for out-of-pocket
expenses such as medical costs.
Q: What type of insurance is required to purchase
and maintain a Vermont tag and registration?
A: Liability and Uninsured/Underinsured coverages
are mandated by Vermont law. You must have liability
of 25/50/10 ($50,000 for all persons injured in an
accident, subject to a limit of $25,000 for one
individual, and $10,000 coverage for property
damage) and UM/UIM of 50/100/10 ($50,000 for bodily
injury or death per injured person (subject to the
"per accident limit"), $100,000 for bodily injury or
death per accident (maximum payable for more than
one person), and $10,000 coverage for property
damage per claim (which is the maximum you can
purchase and also has a $150 deductible). And if you
can understand all that, you shouldn’t be in the
syrup business – you should be in insurance.
Q: Can I keep my current policy issued in my
previous state of residence?
A: Only if you want to frame it and hang it
somewhere to gaze at longingly when you’re homesick.
If you are now a resident of Vermont and have
operated your vehicle here more than thirty days,
you must annually register your car (whether owned
or leased) and get Vermont insurance – right after
you tap your sap.
Q: What if I fail to keep insurance on my vehicle
that I’ve registered in Vermont?
A: Failure to maintain insurance will subject you to
a $100 fine, assessment of points, and suspension or
revocation of your license or privilege to operate a
motor vehicle. Which means it’ll be a long, cold
walk to the maple trees this year.
Q. Can my insurance company decide to drop me as a
policyholder?
A. Yes, under certain circumstances. Generally, when
an auto policy has been in effect for 60 days or
more, an insurance company can cancel it only for
the following reasons: non-payment of the premium,
non-compliance with the terms of the policy, fraud
or material misrepresentation, or the suspension or
revocation of your driver’s license. However, during
the first 59 days of the policy contract, an
insurance company can cancel for any reason. By law,
the company must notify you in writing. The notice
requirement varies, depending primarily on the
reason for discontinuing it – like if you didn’t
share your syrup with the agent.
Q. Can a family member’s poor driving record affect
my cost of insurance if my own record is clear?
A. Yes, if this person lives with you. All household
members are insured as drivers of your car. Because
of this, no matter how good of a maple-tree
sapsucker they are, insurance companies consider
only their driving records when determining your
premium.
Q. The Department of Motor Vehicles (DMV) has
required me to file an SR-22. What's
that?
A. An SR-22 is a type of policy you get that
confirms you are complying with the financial
responsibility laws of Vermont and not just spending
all your time tapping trees and sucking sap. It's
usually required when you have had an accident with
no liability coverage or as a result of a serious
violation – like sucking suds while driving instead
sucking sap in the woods like you’re supposed to.
Your present insurance company must file the SR-22
with the DMV. If the policy is ever cancelled or
non-renewed, the company must notify the DMV. For
more information regarding the SS-22, go to Vermont
Statutes Online at
http://www.leg.state.vt.us/statutes/sections.cfm?Title=23&Chapter=011.
Q. If my friend asks to use my car to run an errand,
will my car insurance cover her while she's driving?
A. Yes, as long as her fingers aren’t so sticky from
all that sap that she can’t steer – and if she’s
driving with the permission of the "named insured"
(person whose name appears first on the policy).
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