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Vermont Car Insurance Laws: Minimum Coverage, Penalties and SR-22

Vermont car insurance law: minimum liability limits, fault or no-fault, uninsured motorist coverage, proof of insurance, penalties for driving uninsured, SR-22, title and registration.

Quick answers for Vermont

Minimum coverage required
Vermont requires a liability policy or bond of at least 25/50/10: $25,000 for one person and $50,000 for two or more people killed or injured, and $10,000 for property damage in any one crash; 23 V.S.A. §§ 800(a), 941
At-fault or no-fault
Vermont uses the at-fault (tort) system: the driver who causes a crash is responsible for the resulting injuries and damage, paid through liability insurance. Alabama Department of Insurance, State Auto Insurance Laws (national table)
Driving without insurance
Driving without required insurance is a traffic violation with a civil penalty of up to $500. Failing to have proof of insurance while driving carries a civil penalty of up to $100. 23 V.S.A. § 800(b), (d)
SR-22 filing
The Commissioner requires proof of financial responsibility (at least 25/50/10) from people convicted of certain offenses, such as DUI, fatal careless or reckless driving, leaving the scene of a crash, or driving with a suspended license. 23 V.S.A. §§ 801, 809

Last verified: 2026-10-27

Required coverage

Minimum coverage requiredVermont requires a liability policy or bond of at least 25/50/10: $25,000 for one person and $50,000 for two or more people killed or injured, and $10,000 for property damage in any one crash; or $115,000 in self-insurance filed with the Commissioner of Motor Vehicles. Policies must also include uninsured/underinsured motorist coverage of at least $50,000 per person and $100,000 per crash for bodily injury, plus up to $10,000 for property damage.
UM statute: https://legislature.vermont.gov/statutes/section/23/011/00941
Source: 23 V.S.A. §§ 800(a), 941
At-fault or no-faultVermont uses the at-fault (tort) system: the driver who causes a crash is responsible for the resulting injuries and damage, paid through liability insurance. The Alabama Department of Insurance's national table of state auto insurance laws lists Vermont among the "Tort States."
Source: Alabama Department of Insurance, State Auto Insurance Laws (national table)
Uninsured motorist coverageRequired. Every auto liability policy on a vehicle registered or principally garaged in Vermont must include uninsured, underinsured and hit-and-run motorist coverage for bodily injury and property damage. New or renewed policies must provide at least $50,000 for one person and $100,000 for two or more people; if the policy's liability limits are higher, UM limits must match unless the policyholder directs otherwise. Property damage coverage pays up to $10,000 per claim, subject to a $150 deductible (waived in some cases when other collision coverage applies).
Source: 23 V.S.A. § 941
Proof of insuranceEvery driver must have proof of financial responsibility when driving. Proof may be shown on a portable electronic device, which does not by itself give an officer consent to access other contents. A driver cited for not having proof is not convicted if he or she sends or produces proof of coverage in effect at the time to the enforcement agency within seven business days. The Commissioner may require proof of insurance before a vehicle inspection.
Source: 23 V.S.A. § 800(a), (c)

Driving without insurance and SR-22

Driving without insuranceDriving without required insurance is a traffic violation with a civil penalty of up to $500. Failing to have proof of insurance while driving carries a civil penalty of up to $100.
Source: 23 V.S.A. § 800(b), (d)
SR-22 filingThe Commissioner requires proof of financial responsibility (at least 25/50/10) from people convicted of certain offenses, such as DUI, fatal careless or reckless driving, leaving the scene of a crash, or driving with a suspended license. The obligation generally ends one year after the crash, conviction or judgment (or one year after the reinstatement eligibility date if the license was suspended), but lasts three years for fatal careless or reckless driving or a second or later DUI.
Section 801: https://legislature.vermont.gov/statutes/section/23/011/00801
Source: 23 V.S.A. §§ 801, 809

Your rights with insurers

Cancellation and nonrenewalOnce a policy has been in effect 60 days (or for a renewal), an insurer may cancel only for nonpayment of premium; fraud or material misrepresentation, or violation of policy terms; or suspension or revocation of the license of the named insured or a household or regular driver. Cancellation requires at least 45 days' notice with the reasons (15 days for nonpayment of premium). Nonrenewal requires at least 45 days' advance notice.
Source: 8 V.S.A. §§ 4223, 4224, 4225
Total loss rulesAn insurance company that declares a motor vehicle a total loss, or anyone who acquires a vehicle as salvage or scraps it, must apply to the Commissioner of Motor Vehicles for a salvage certificate of title within 15 days.
Source: 23 V.S.A. § 2091

Title and registration

Transferring a car titleWhen selling a vehicle, the owner must, at delivery, sign the assignment and warranty of title and record the odometer reading on the certificate, then mail or deliver the certificate to the buyer or the Commissioner of Motor Vehicles. Multiple owners must be shown as tenants by the entirety, joint tenants, tenants in common, partners, or transfer on death.
Source: 23 V.S.A. § 2023

Car Insurance & Vehicle Laws FAQ

What is the minimum car insurance required in Vermont?
Vermont requires a liability policy or bond of at least 25/50/10: $25,000 for one person and $50,000 for two or more people killed or injured, and $10,000 for property damage in any one crash; or $115,000 in self-insurance filed with the Commissioner of Motor Vehicles. Policies must also include uninsured/underinsured motorist coverage of at least $50,000 per person and $100,000 per crash for bodily injury, plus up to $10,000 for property damage.
Is Vermont a no-fault car insurance state?
Vermont uses the at-fault (tort) system: the driver who causes a crash is responsible for the resulting injuries and damage, paid through liability insurance. The Alabama Department of Insurance's national table of state auto insurance laws lists Vermont among the "Tort States."
Is uninsured motorist coverage required in Vermont?
Required. Every auto liability policy on a vehicle registered or principally garaged in Vermont must include uninsured, underinsured and hit-and-run motorist coverage for bodily injury and property damage. New or renewed policies must provide at least $50,000 for one person and $100,000 for two or more people; if the policy's liability limits are higher, UM limits must match unless the policyholder directs otherwise. Property damage coverage pays up to $10,000 per claim, subject to a $150 deductible (waived in some cases when other collision coverage applies).
Can you show proof of car insurance on your phone in Vermont?
Every driver must have proof of financial responsibility when driving. Proof may be shown on a portable electronic device, which does not by itself give an officer consent to access other contents. A driver cited for not having proof is not convicted if he or she sends or produces proof of coverage in effect at the time to the enforcement agency within seven business days. The Commissioner may require proof of insurance before a vehicle inspection.
What is the penalty for driving without insurance in Vermont?
Driving without required insurance is a traffic violation with a civil penalty of up to $500. Failing to have proof of insurance while driving carries a civil penalty of up to $100.
When do you need an SR-22 in Vermont, and for how long?
The Commissioner requires proof of financial responsibility (at least 25/50/10) from people convicted of certain offenses, such as DUI, fatal careless or reckless driving, leaving the scene of a crash, or driving with a suspended license. The obligation generally ends one year after the crash, conviction or judgment (or one year after the reinstatement eligibility date if the license was suspended), but lasts three years for fatal careless or reckless driving or a second or later DUI.
How much notice must an insurer give before canceling car insurance in Vermont?
Once a policy has been in effect 60 days (or for a renewal), an insurer may cancel only for nonpayment of premium; fraud or material misrepresentation, or violation of policy terms; or suspension or revocation of the license of the named insured or a household or regular driver. Cancellation requires at least 45 days' notice with the reasons (15 days for nonpayment of premium). Nonrenewal requires at least 45 days' advance notice.
When is a car a total loss in Vermont?
An insurance company that declares a motor vehicle a total loss, or anyone who acquires a vehicle as salvage or scraps it, must apply to the Commissioner of Motor Vehicles for a salvage certificate of title within 15 days.
How do you transfer a car title in Vermont?
When selling a vehicle, the owner must, at delivery, sign the assignment and warranty of title and record the odometer reading on the certificate, then mail or deliver the certificate to the buyer or the Commissioner of Motor Vehicles. Multiple owners must be shown as tenants by the entirety, joint tenants, tenants in common, partners, or transfer on death.

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General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.