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Vermont Auto Insurance for First-Time Drivers

Vermont requires 25/50/10 liability coverage and is an at-fault state.

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Vermont at a Glance

25/50/10

Minimum liability limits, in thousands of dollars (per person / per accident / property)

At-fault

The at-fault driver's insurance pays for the damage they cause

Required

PIP and Uninsured motorist coverage must be on every policy

Minimum learner's permit age, 40 supervised driving hours

Source: state DMV, insurance department and statute records, verified July 2026

State Requirements

Vermont operates under a tort-based liability system, meaning the at-fault driver pays for damages in an accident. The state requires all drivers to carry proof of insurance and present an insurance identification card during traffic stops or at accident scenes. Vermont is one of 20 states that mandates uninsured motorist coverage at the same limits as your liability policy, according to the Vermont Department of Motor Vehicles.

Bodily Injury Liability

This coverage pays for injuries you cause to other people in an accident where you're at fault.

Property Damage Liability

This pays for damage you cause to another person's vehicle or property.

Uninsured Motorist Bodily Injury

Vermont requires this coverage to protect you when hit by a driver with no insurance or a hit-and-run driver. You cannot opt out — if you increase your liability limits, your uninsured motorist coverage automatically increases to match.

Uninsured Motorist Property Damage

This covers damage to your vehicle caused by an uninsured driver. You can decline this coverage in writing, but doing so means you'd pay out-of-pocket to repair your car after an accident with an uninsured driver.

Collision and Comprehensive

Vermont does not require physical damage coverage for your own vehicle unless you have a car loan or lease. However, first-time drivers often finance their vehicles, and lenders universally require full coverage until the loan is paid off. Even if you own your car outright, Vermont's harsh winters and rural wildlife create significant risks that comprehensive coverage addresses.

Cost Overview

$346/mo

Typical monthly rate in Vermont, new drivers

Rate data: Insurify, 2026

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Rules for new drivers

Night driving

none

Passengers

no passengers first 3 months, then family only for next 3 months

Source: IIHS and state DMV records, verified July 2026

Frequently Asked Questions

Can I drive in Vermont with out-of-state insurance?

Yes, if you're visiting Vermont or attending college temporarily while maintaining residency elsewhere. However, if you establish Vermont residency — typically by living here for 6+ months, registering to vote, or obtaining a Vermont driver's license — you must obtain Vermont insurance within 60 days. Your out-of-state policy must meet or exceed Vermont's minimum 25/50/10 liability and uninsured motorist requirements.

Coverage Types

Liability Insurance

Liability insurance is the foundation of every policy — it pays when you injure someone or damage their property in an accident you caused. Your premium (the amount you pay monthly or annually) buys a specific limit of protection, and you're personally responsible for any costs beyond that limit.

Full Coverage

Full coverage is industry shorthand for a policy that includes liability, collision, and comprehensive — it protects both other people and your own vehicle. If you financed or leased your car, your lender requires this coverage until you own the vehicle outright.

Comprehensive Coverage

Comprehensive coverage pays to repair or replace your car after non-collision events: theft, vandalism, weather damage, fire, falling objects, or hitting an animal. You choose a deductible (the amount you pay out-of-pocket before insurance covers the rest) — higher deductibles mean lower premiums.

Collision Coverage

Collision coverage pays to repair your vehicle after a crash with another car or object, regardless of who caused the accident. Like comprehensive, you select a deductible — $500 and $1,000 are most common for first-time drivers balancing premium cost against out-of-pocket risk.

Uninsured Motorist Coverage

Uninsured motorist coverage pays your medical bills and vehicle damage when you're hit by a driver with no insurance or a hit-and-run driver who flees the scene. Vermont requires both bodily injury and property damage uninsured motorist coverage, though you can waive the property portion in writing.

SR-22 Insurance

An SR-22 is not insurance but a certificate your insurer files with the Vermont DMV proving you carry at least minimum coverage. The state requires it after certain violations like DUI, driving without insurance, or accumulating excessive points — you'll need to maintain it for 3–5 years depending on the offense.