Last Updated on January 1, 2026

Vermont is consistently one of the most affordable states for car insurance—but that doesn’t mean every driver automatically gets a great rate. Your price can swing based on your ZIP code, driving history, vehicle, credit-based insurance score (where allowed), and the coverage limits you choose.

To give you a realistic benchmark, recent pricing analysis estimates Vermont averages about $1,610 per year for full coverage and $351 per year for minimum coverage. Nationally, the averages are about $2,697 (full coverage) and $820 (minimum coverage).

*Averages are for a sample driver profile and are meant for comparison. Your rate may be higher or lower.

Key Takeaways

1. Vermont Is Usually Below the National Average: Recent estimates put Vermont’s average full coverage premium around $1,610/year versus about $2,697/year nationally, but your exact rate depends on your profile.
2. Minimum Coverage Includes More Than Liability: Vermont requires 25/50/10 liability, and state law also requires uninsured/underinsured motorist coverage on auto policies.
3. Driving Uninsured Can Trigger More Than a Fine: Penalties can include civil fines and a requirement to file Financial Responsibility Insurance (often via an SR-22) for at least three years.
4. Comparing Quotes Is the Fastest Way to Save: Shop multiple insurers with the same limits/deductibles and stack discounts like bundling, safe-driver, low-mileage, and telematics where it makes sense.

Why Is Car Insurance Often Cheaper in Vermont?

No single factor determines price, but Vermont’s rates are often lower than the national average because the state tends to have less congestion, fewer high-severity claims, and lower theft activity than many large metro-heavy states.

• Lower population density: Fewer vehicles on the road can mean fewer claims.
• Fewer major metro risk factors: Some states have higher claim severity due to traffic and theft trends.
• Driver profile matters: Even in a cheap state, a DUI, recent accident, or low credit-based insurance score can still push premiums up fast.

Top 10 Auto Insurance Companies in Vermont

The “best” insurer depends on what you value most: price, claims experience, digital tools, discount options, or having a strong local agent. These are strong options to compare in Vermont.

1. USAA

Best for: Military members, veterans, and eligible family members. If you qualify, USAA is frequently a top choice for value and customer satisfaction.

2. Vermont Mutual

Best for: Drivers who prefer a regional carrier and an independent-agent experience. Vermont Mutual is a well-known local option and can be especially competitive for bundled policies.

3. State Farm

Best for: Drivers who want a large agent network and predictable coverage options. State Farm is widely available and often competitive for drivers with clean records.

4. GEICO

Best for: Price-conscious shoppers who like to manage everything online. GEICO can be a strong baseline quote to compare against other carriers.

5. Progressive

Best for: Drivers who want flexible pricing options (like telematics/usage-based programs) and strong online tools—especially if you’re shopping after a ticket or claim and need more rate flexibility.

6. Travelers

Best for: Drivers who want a balance of coverage options, discounts, and a strong national carrier with broad product availability.

7. Allstate

Best for: Drivers who want a well-known brand with a wide menu of optional coverages, plus potential savings through bundling and driver programs.

8. Liberty Mutual

Best for: Drivers who want lots of customization and discount opportunities (especially when combining auto with home or renters coverage).

9. The Hanover

Best for: Drivers who prefer working with an independent agent and want enhanced coverage packages with strong service features.

10. Concord Group

Best for: Vermont drivers who want a regional New England carrier feel while still working through an independent agent channel.

Vermont Insurance Requirements

Vermont requires drivers to carry a minimum amount of liability insurance. In plain English: if you’re driving a registered vehicle in Vermont, you need coverage that meets the state minimums.

Per Vermont law, drivers must carry at least:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident
• $10,000 property damage liability per accident

Important: Vermont also requires uninsured/underinsured motorist (UM/UIM) coverage on auto policies. Under 23 V.S.A. § 941, the minimum UM/UIM bodily injury limits are generally $50,000 per person and $100,000 per accident, and UM property damage coverage applies up to $10,000 per claim (with rules around deductibles and how it coordinates with other physical damage coverage).

If you have a loan or lease, your lender will almost always require full coverage (typically liability + comprehensive + collision). Even if you own your car outright, many drivers choose higher limits than the minimum because the minimum may not go far in a serious accident.

Can You Self-Insure in Vermont?

Yes. Vermont allows certain drivers to self-insure a vehicle instead of buying a traditional policy. Vermont law generally requires $115,000 of self-insurance evidence to be filed with the Commissioner of Motor Vehicles. For most drivers, a standard insurance policy is the simpler and more practical option.

Driving Without Insurance in Vermont

It’s illegal to drive without insurance in Vermont. You may be asked for proof of insurance during a traffic stop or after a crash.

Common consequences can include:

• Civil penalty up to $500 for operating (or allowing operation of) an uninsured vehicle
• Civil penalty up to $100 for failing to carry proof of coverage (note: Vermont allows proof on a phone, and producing valid proof after the stop can prevent a conviction in some situations)
• Potential requirement to file Financial Responsibility Insurance (often via an SR-22) with the state—this is a form of proof of financial responsibility

The Vermont DMV explains that if you’re required to file Financial Responsibility Insurance, you must maintain it for at least three years, and any lapse can trigger a license suspension until valid coverage is back on file.

Car Insurance in Vermont After a DUI

A DUI can cause one of the biggest premium increases you’ll ever see, and some insurers may non-renew your policy. If you need coverage after a DUI, the best move is to shop multiple carriers and ask about filing requirements (like an SR-22/financial responsibility filing).

If you’re comparing options, start here: cheap DUI car insurance.

Car Insurance in Vermont After an At-Fault Accident

At-fault accidents typically raise rates at renewal, especially if the claim involved injuries or significant damage. If you’ve been claim-free for years, check whether your insurer offers (or you already carry) accident forgiveness, which may reduce or eliminate the surcharge for a first qualifying accident.

Car Insurance in Vermont for Young Drivers

Teen and young adult drivers are expensive to insure almost everywhere, including Vermont. To cut costs, compare quotes with the same coverage, ask about good-student discounts, consider telematics programs (if you’re comfortable with the tradeoff), and explore whether staying on a parent/guardian policy makes sense.

More strategies here: cheapest car insurance for young drivers.

Car Insurance in Vermont With Poor Credit

In many states, insurers can use a credit-based insurance score as one of many pricing factors. If your credit is hurting your rate, you may still be able to lower premiums by shopping around, reducing coverage “add-ons” you don’t need, and improving payment history over time.

Also, the cheapest “discount” is avoiding tickets and claims. Keeping a clean driving record can protect you from the biggest rate jumps.

SR-22 Insurance in Vermont

An SR-22 isn’t a separate insurance policy—it’s a filing that proves you carry the required coverage. In Vermont, the DMV may require a financial responsibility filing after certain violations, and it generally must stay on file for a minimum period (often three years, depending on the situation).

If you’re in that situation, you can usually get SR-22 insurance through many mainstream insurers, though not every company will accept every high-risk driver. Most companies charge a small filing fee, and the bigger cost is usually the higher premium due to the violation.

Here’s a deeper breakdown of how long an SR-22 lasts and what can happen if your coverage lapses.

For official state guidance, you can also review the Vermont DMV insurance page.

How to Find the Best Auto Insurance in Vermont

Vermont is already a low-cost state for auto insurance, so small tweaks can translate into meaningful savings. Before you renew, compare quotes and make sure you’re not paying for coverage you don’t need—or underinsured where it matters most.

• Compare apples to apples: Same liability limits, same deductibles, same drivers, same vehicles.
• Raise deductibles thoughtfully: Higher deductibles can reduce premiums, but only if you can afford the out-of-pocket cost after a claim.
• Ask about discounts: Bundling, multi-car, safe driver, good student, low mileage, and telematics discounts can stack.
• Re-check your coverage annually: A move, a new vehicle, or a change in commute can all change what “best” looks like.

FAQs on Car Insurance in Vermont