Vermont Auto Insurance Quotes and Coverage Guide

Vermont Motor Vehicle Insurance Questions & Answers

Q: 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).