Vermont Auto Insurance Rates: What You Need To Know

Vermont's auto insurance rates are among the lowest in the country, with an average annual premium of $1,053. The average cost of car insurance in Vermont is $1,385 per year for full coverage and $297 per year for minimum coverage. The cheapest car insurance company in Vermont is Union Mutual at $605 per year on average, or $50 per month. State Farm has the cheapest car insurance in Vermont, at $51 per month for full coverage.

Vermont's minimum insurance requirements

Vermont has specific minimum insurance requirements that drivers must meet. These include liability insurance and uninsured/underinsured motorist coverage. The minimum requirements are as follows:

• $25,000 bodily injury liability per person
• $50,000 bodily injury liability per accident
• $10,000 property damage liability per accident
• $50,000 uninsured/underinsured motorist bodily injury per person
• $100,000 uninsured/underinsured motorist bodily injury per accident
• $10,000 uninsured/underinsured motorist property damage per accident

Drivers in Vermont are required by law to carry basic insurance coverage, which includes bodily injury and property damage liability, as well as uninsured/underinsured motorist coverage. While it is cheaper to purchase just the state minimum coverage, expenses can quickly skyrocket if you are in an accident.

It is important to note that these minimum requirements may not be sufficient to cover the cost of damages in an expensive accident. As such, drivers in Vermont should consider purchasing higher levels of coverage to ensure they are adequately protected.

Additionally, Vermont requires SR-22 insurance for drivers with repeated or severe driving violations, which can result in higher premiums and increased coverage mandates.

Full coverage insurance

Full coverage car insurance in Vermont is three times as expensive as minimum coverage insurance on average. The average cost of car insurance in Vermont is $103 per month for full coverage. That makes Vermont the fourth cheapest state in the country for full coverage insurance.

Most lenders require full coverage insurance if you have a car loan or lease. You should also consider full coverage insurance if your car is less than eight years old, or worth more than $5,000.

State Farm has the cheapest car insurance in Vermont, at $51 per month for full coverage.

Factors influencing insurance rates

Several factors influence insurance rates in Vermont. Here are some key considerations:

Age and Gender

Age and gender are significant factors in determining insurance rates. Younger and less experienced drivers, particularly teens, tend to pay higher premiums since they are considered less experienced and more prone to accidents. Insurance rates generally decrease after the age of 25 and may increase again for senior drivers over the age of 65. Additionally, male drivers, especially teenagers, often face higher insurance rates due to a higher likelihood of accidents and risk-taking behaviour.

Driving Record and History

An individual's driving record, including traffic violations, accidents, and claims history, plays a crucial role in calculating insurance rates. A clean driving record can result in lower premiums and access to safe-driver discounts. Conversely, violations, accidents, and multiple infractions can increase rates significantly. The impact of these incidents on insurance costs can last for three to five years or even longer for more severe offences like DUIs.

Location and Vehicle Type

The location of the insured, including the state and city, affects insurance rates. Vermont has a low percentage of uninsured drivers, contributing to more affordable premiums. However, insurance rates can vary within the state, with cities like Essex Junction having lower rates than St. Albans and Newport. Additionally, the type of vehicle, its make, model, and age, influence insurance costs. Luxury vehicles, sports cars, and certain brands may be more expensive to insure due to higher repair costs, theft risks, or safety concerns.

Credit History and Marital Status

In most states, credit history is a factor in determining insurance rates. A poor credit score may result in higher premiums as insurers associate it with a higher risk of filing claims. Conversely, a good credit score can lead to lower rates. Marital status also plays a role, with married drivers often paying less for insurance due to lower accident rates and financial stability.

Coverage Selections and Deductibles

The coverage types and limits selected by the insured impact insurance rates. While minimum coverage may be cheaper, it is essential to ensure adequate protection. Collision, comprehensive, uninsured motorist, and personal injury protection coverages can provide valuable financial security in the event of an accident. Additionally, choosing a higher deductible can lower insurance premiums, but it is essential to ensure that the deductible amount is affordable in the event of a claim.

Average insurance rates in Vermont

Vermont has some of the cheapest car insurance rates in the US. The average cost of car insurance in Vermont is $1,053 per year, considerably cheaper than the national average of $1,543. The average rate for a full coverage policy is $1,385 per year, while the average rate for a minimum coverage policy is $297 per year.

The cost of car insurance in Vermont varies depending on factors such as age, gender, credit score, driving record, and the type of car. For example, young drivers between the ages of 16 and 25 typically pay higher insurance rates due to their lack of driving experience. Additionally, drivers with a poor credit score may pay higher rates as insurance companies consider them to be higher-risk.

When shopping for car insurance in Vermont, it is important to consider the minimum insurance requirements in the state. Vermont law mandates that all drivers have basic insurance coverage, including bodily injury liability, property damage liability, and uninsured/underinsured motorist coverage. It is also worth noting that Vermont requires uninsured/underinsured motorist property damage coverage, which is not required in some other states.

When comparing insurance rates, it is essential to get quotes from multiple insurance companies as rates can vary significantly between providers. It is also beneficial to ask about discounts, such as good student discounts or safe driver discounts, which can help lower your insurance premiums.

Cheapest insurance companies in Vermont

Vermont has some of the cheapest car insurance rates in the US. The average cost of car insurance in Vermont is $1,053 per year, considerably cheaper than the national average of $1,543.

The cheapest car insurance company in Vermont is Union Mutual, with an average annual rate of $676 for full coverage. The average cost of full coverage car insurance in Vermont is $1,082 per year, or about $90 per month.

State Farm is the cheapest car insurance in Vermont for minimum coverage, at $51 per month for full coverage.

USAA is the cheapest car insurance company in Vermont, with a statewide average of $705 per year. However, USAA limits membership to military members, veterans, and their families.

Other cheap car insurance companies in Vermont include Geico, Nationwide, and Progressive.

Frequently asked questions