Navigating Vermont’s Auto Insurance Landscape

Even on beautiful Vermont roads, accidents happen. Are you adequately covered?

It’s hard to imagine anything can go wrong when you’re cruising down a Vermont backroad in the middle of autumn, with the sky a robin’s egg blue and the trees a kaleidoscope of color. But car accidents can happen in the blink of an eye. 

According to the Vermont Department of Transportation, roughly 4,000 people are injured in car accidents in the state every year. 

Fortunately, you’ve thought ahead and purchased the necessary auto insurance. Or have you?

Vermont’s auto insurance requirements

To drive legally in Vermont, you must have the following minimum insurance coverage:

• Liability coverage: Auto liability insurance pays for damages suffered by another person caused by an accident in which you were at fault. In Vermont, you must carry the following liability coverage:
  • $25,000 per person for bodily injury, 
  • $50,000 per accident for bodily injury, and
  • $10,000 for property damage.
• Uninsured/underinsured motorist coverage (UM/UIM): This type of insurance covers you if you’re injured by a driver who isn’t insured or doesn’t have enough insurance to cover your injuries. In Vermont, you must carry the following UM/UIM coverage:
  • $50,000 per person, and
  • $100,000 per accident.

Penalties for driving without auto insurance in Vermont

If you’re caught driving without car insurance in Vermont, you’ll be assessed a civil penalty of up to $500. 

While that’s not ideal, the most severe consequence of driving without insurance is that uninsured drivers who cause an accident are personally liable for all of the damages that result.

Even if you don’t have any money in your bank account, the other driver can obtain a court order that allows them to garnish your future wages and sell your assets.

Optional insurance coverage

The minimum liability insurance required may not be enough to cover a serious car accident, leaving you personally liable for the amount of damages that exceed your policy limits. For this reason, many people choose to purchase additional liability insurance.

Along with additional liability insurance, drivers in Vermont can purchase the following optional coverage:

• Comprehensive coverage provides coverage for losses other than those caused by a collision (vandalism, falling objects, fire, etc.).
• Collision coverage provides coverage for damage to your vehicle caused by an accident with another vehicle or an object (such as a telephone pole).
• Personal injury protection (PIP) provides up to $10,000 coverage regardless of who’s at fault (what’s covered depends on the specific policy).
• MedPay provides coverage for medical expenses incurred by you and your passengers, regardless of who is at fault.

Vermont is a fault-based insurance state

Like the majority of states in the country, Vermont operates an “at-fault” insurance system (sometimes called a “tort-based” or “fault-based” system). This means the person responsible for causing a car crash is liable for any injuries or property damage that results from the crash. 

Accordingly, if you’ve been involved in a car accident in Vermont that wasn’t your fault, you have three main avenues to recover damages:

1. File a claim with your insurance company (your insurer will seek reimbursement from the at-fault driver’s insurance company), 
2. File a claim with the at-fault driver’s insurance company, or
3. File a personal injury lawsuit against the at-fault driver.

FAQs about car insurance in Vermont

Do you still have questions about car insurance in Vermont? Let’s see if we can get them answered:

• Prioritize safety: Ensure everyone involved is safe and, if needed, seek immediate medical attention.
• Notify authorities: Always report the accident to the local police, regardless of the severity. A police report can be instrumental in insurance and legal proceedings.
• Document everything: Capture photographs of the scene, damages, injuries, and any relevant road signs or signals. Collect contact information from witnesses and involved parties. Jot down the sequence of events leading to the accident, as memories can fade over time.
• Contact your insurer: Report the accident to your insurance company as soon as possible, even if you believe you’re not at fault. This proactive step can assist in efficient claim processing.
• Seek legal advice: If injuries are involved, or there’s a dispute over fault, consulting a personal injury attorney can be beneficial. They can guide you through the legal nuances and help ensure your rights and interests are protected.

Navigating the aftermath of a car accident in Vermont can be overwhelming. Armed with the knowledge of Vermont’s auto insurance landscape, you’re better equipped to ensure your rights and financial well-being are safeguarded. Always consider seeking the counsel of a skilled car accident attorney to guide you through the intricacies of the legal process.