Vermont Auto Insurance Laws
Auto Insurance Laws and Trends in VT
Under Vermont's tort insurance system, all injuries and property damages are the responsibility of the driver who is deemed to be at fault for an accident. The mandatory liability limits to cover these expenses are:
- Bodily Injury: $25,000 per person ($50,000 per accident)
- Property Damage: $10,000 per accident
Motorists can choose to increase these limits (recommended), as well as purchase additional coverage . Additional coverage includes physical damage to your vehicle, which are collision and comprehensive. In Vermont, one of the main causes of comprehensive claims is animal collision. Over the past 10 years, the number of injuries and fatalities caused by animal collision, specifically with moose , has risen from 1 to 164. These large animals cause substantial damage to vehicles, thus increasing the cost of premiums.
When a collision or comprehensive claim is filed, the insurance adjuster will usually determine the amount of payout based on the actual cash value of the vehicle. They will determine if it is economically feasible to repair the vehicle or deem it a total loss and give the policy owner a cash payout.
Auto insurance rates in Vermont
Vermont has one of the lowest insurance rates in the country. They rank # 32 out of the 50 states, and have enjoyed that placement for the past few years. Insurance rates in Vermont are slowly declining due to the increased number of safety and anti-theft devices that are being placed in vehicles.
In spite of the fairly low auto insurance rates in Vermont, some motorists still choose to drive without insurance. If you are involved in an accident with an uninsured or underinsured driver, be aware that you will be responsible for the damages and injuries – unless you have purchased insurance to cover this situation. A driver without adequate insurance will be subject to fines and suspension of driving privileges.