Short answer: Vermont requires liability insurance of at least $25,000 for one person and $50,000 for two or more persons injured or killed, plus $10,000 for property damage. Every auto liability policy must also include uninsured motorist coverage of at least $50,000/$100,000, with uninsured motorist property damage up to $10,000 subject to a $150 deductible.
Liability minimums
23 V.S.A. § 800 makes it illegal to operate, or permit operation of, a registered vehicle on Vermont highways without an automobile liability policy or bond in those 25/50/10 amounts. In lieu of a policy, evidence of self-insurance in the amount of $115,000 must be filed with the Commissioner of Motor Vehicles. The Commissioner may require proof of financial responsibility before motor vehicle inspections under § 1222.
The Vermont DMV insurance page summarizes the same rule and explains what happens after a violation.
Penalties and proof at the roadside
A person who violates § 800(a) faces a civil penalty of not more than $500, and the violation is a traffic violation. Every operator must have proof of financial responsibility when driving; electronic proof on a portable device is allowed and does not by itself consent to a search of other device contents. An operator cited only for lacking proof is not convicted if, within seven business days, they send or produce proof that coverage was in effect at the stop. A proof-only violation carries a civil penalty of not more than $100.
Anyone who operates or permits an uninsured vehicle may also be required to file Financial Responsibility Insurance with DMV. That filing covers the person (not a specific vehicle) for operating any vehicle, must stay on file for a minimum of three years, and is accepted only as an SR-22 certificate from an insurance company—not from an agent. A lapse triggers suspension until a valid filing is restored. Statutory reasons appear in 23 V.S.A. § 801; filing mechanics appear in § 804.
Uninsured motorist coverage is not optional
23 V.S.A. § 941 requires every auto liability policy delivered or issued for delivery in Vermont for a vehicle registered or principally garaged in the state to include coverage for persons insured under the policy who are legally entitled to recover from uninsured, underinsured or hit-and-run motorists. For new or renewed policies, UM bodily injury limits must be at least $50,000 for one person and $100,000 for two or more. If your liability limits are higher than 50/100, UM must match unless the policyholder directs otherwise.
Property-damage UM must indemnify claims of no more than $10,000 per claim, subject to a $150 deductible—except that the deductible does not apply the same way when other direct damage coverage is valid and collectible, as spelled out in § 941(a).
Where 25/50/10 falls short
Vermont's liability floor is modest compared with its mandatory UM floor. A newer vehicle you damage can exceed $10,000 quickly, and medical costs from a serious crash can exceed $25,000 for one person. Collision and comprehensive remain separate purchases.
Self-insurance alternative
Instead of a standard policy, § 800 allows evidence of self-insurance in the amount of $115,000 filed with the Commissioner of Motor Vehicles in a form the Commissioner prescribes. That path is uncommon for private passenger drivers; most households simply buy a 25/50/10 liability policy that automatically carries the higher UM limits required by § 941.
Department of Financial Regulation guidance
Vermont's Department of Financial Regulation publishes a consumer guide to auto insurance that explains coverages beyond the statutory floor, including collision, comprehensive and how UM interacts with underinsured claims. Use that guide alongside the DMV page when you compare quotes so you are not shopping liability-only when the law already builds UM into the policy.
Matching UM to higher liability
If you raise liability limits above 50/100, § 941 requires UM to match unless you direct otherwise. That is the opposite of states where UM stays at a low floor unless you opt up. Vermont drivers who buy 100/300 liability should expect 100/300 UM on the same declarations page unless they give a different instruction the insurer documents.
Bottom line
Vermont pairs a 25/50/10 liability requirement with mandatory 50/100 UM on every policy. Keep proof handy for inspections and traffic stops. Compare states in our car insurance minimums by state table.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in Vermont and auto insurance.
Frequently asked questions
What is the minimum car insurance in Vermont?
Liability of $25,000/$50,000 bodily injury and $10,000 property damage, plus mandatory UM of at least $50,000/$100,000 on the policy.
Is uninsured motorist coverage required in Vermont?
Yes. Section 941 requires UM/UIM on every auto liability policy for vehicles registered or principally garaged in Vermont.
What is the fine for driving uninsured in Vermont?
A civil penalty of not more than $500 for operating without the required liability coverage, plus possible three-year FR filing.
Can I show electronic proof of insurance in Vermont?
Yes. Portable electronic devices may be used to prove financial responsibility under § 800(c).
How long must a Vermont FR filing stay in place?
DMV says Financial Responsibility Insurance filings must be maintained for a minimum of three years.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.