Learn About Car Insurance in Vermont & More
What is car insurance?
Operating a vehicle carries inherent risks, and drivers in Vermont must prepare accordingly. Primary precautions include defensive driving and the use of seat belts. An equally important precaution is to get a good car insurance policy.
Car insurance offers vital protection for drivers. Most policies protect against a variety of accidents that can happen on the road, and often ones that occur off the road too.
Who in Vermont needs auto insurance?
Vermont law generally mandates that drivers carry auto insurance at least meeting state minimum requirements. Many drivers get much more insurance than what the state requires.
Vermont’s minimum coverage requirements generally are as follows:
- Property Damage Liability in the amount of $10,000 per accident
- Bodily Injury Liability in the amount of $25,000 per person
- Bodily Injury Liability also of at least $50,000 per accident
Because an accident or other event could easily exceed these amounts, it’s widely recommended to get more coverage than what the state minimally requires drivers to have.
What kind of protections does auto insurance provide?
Auto policies can comprise a variety of coverages, which is how policies can offer a broad spectrum of protections. Standard and optional protections include:
- Bodily Injury Liability: Might take care of injuries sustained by individuals outside the insured vehicle, usually including other drivers, other passengers and pedestrians.
- Medical Payments or Personal Injury Protection (PIP): Might take care of medical expenses related to injuries sustained by individuals inside the insured vehicle, usually including both the driver and any passengers in the car.
- Property Damage Liability: Might take care of costs related to damage sustained by other vehicles or property, usually including other vehicles and different kinds of property.
- Collision Coverage: Might take care of damages to the insured vehicle resulting from multi-vehicle accidents with at least one other vehicle that’s being driven.
- Comprehensive Coverage: Might take care of the insured vehicle against damages resulting from non-accident events, usually including adverse weather, theft and vandalism, falling trees, hitting animals, fire and other perils.
- Gap Coverage: Might take care of any remaining loan balance if the insured vehicle is totaled, and its value has depreciated to less than what’s owed.
- Uninsured/Underinsured Motorist Coverage: Might take care of accidents caused by drivers lacking adequate insurance, usually covering injuries to the insured vehicle’s driver/passengers and damage to the vehicle.
The terms of a lease or loan typically require drivers who finance to have comprehensive, collision and gap coverages.
Is Vermont an at-fault or no-fault state?
Vermont is an at-fault state, meaning the driver responsible for an accident typically bears the financial responsibility for damages or injuries caused by the accident. It’s especially important to have uninsured/underinsured motorist coverage, as another driver who’s at fault may not carry sufficient (or any) insurance.
At-fault states are also referred to as tort states, the two terms are used interchangeably.
What is SR-22 auto insurance?
SR-22 isn’t technically a type of auto insurance, but rather a form that’s filed with the state. The form shows that the driver has at least the state’s mandated minimum auto coverages.
You may need to file an SR-22 form if you’ve been caught driving with no insurance, driving with a suspended license, or have a DUI conviction on your record. If you do need to file this form, an insurance agent who specializes in auto policies will be able to help you.
How can drivers reduce their insurance costs?
While reducing coverages or lowering limits can lead to lower premiums, it’s generally not advisable as it can lead to inadequate protection in the event of an accident. Instead, leveraging discounts offered by insurers, such as safe driver discounts, multi-policy discounts, new policy discounts and others, is typically a better strategy.
Comparing rates is also an effective way to save money. An independent insurance agent can help drivers compare quotes from multiple insurers.
How can drivers get car insurance?
For help finding the right car insurance in Vermont, connect with the independent insurance agents at Lonergan & Thomas Insurance. Our agents will make sure that you and your vehicle are well protected.
