Vermont Automobile Insurance

 Vermont requires all licensed drivers (owners or operators) of motor vehicles to maintain evidence of financial responsibility, principally, automobile liability insurance; i.e., Mandatory Maintenance of Financial Responsibility.  Evidence of Insurance must be maintained as required by the Commissioner of Motor Vehicles.A Regulation will be promulgated by the Department of Motor Vehicles specifying the evidence procedures to be followed.

Failure to maintain Vermont car insurance shall be treated as a traffic offense (3 point assignment), with the operator subject to a fine of up to $100. Although failure to carry insurance will be treated as a traffic offense, insurers are prohibited from reflecting the three assigned MV points or otherwise surcharging an insured's premium for the first offense. (Only subsequent offenses may be so reflected or surcharged.)

No owner or operator of a motor vehicle required to be licensed shall operate or permit the operation of the vehicle upon the highways of the state without having in effect an automobile liability policy or bond in the amounts of at least $25,000.00 for one person and $50,000.00 for two or more persons killed or injured and $10,000.00 for damages to property in any one accident. In lieu thereof, evidence of self-insurance in the amount of $115,000.00 must be filed with the commissioner of motor vehicles.

Uninsured/Underinsured Motorists Property Damage Coverage is mandatory for all policies. This must be provided in the amount of $10,000 subject to a $150 Deductible, unless the claimant also carries other direct damage coverage (e.g., Collision Coverage), in which case the added UM Property Damage Coverage will be used to pay any Deductible (with the other direct damage coverage, e.g., Collision, paying the balance of the claim); thereby providing first dollar coverage on all accident claims wherein an Uninsured/Underinsured Motorist (including Hit-and-Run) was at fault. The Uninsured/Underinsured Motorists Property Damage will also pay other direct and indirect damages not otherwise insured (or insured more specifically), subject to the $10,000 maximum.

Anyone who violates this law (by operating or permitting operation of an uninsured vehicle) may be issued a (civil) traffic citation which would result in the required payment of a fine, the assessment of points against their driving privileges and/or license and the requirement that they file Financial Responsibility Insurance with the Vermont DMV.