Car Insurance : Vermont

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Vermont QuarterVermont Auto Insurance Requirements

Vermont has strict auto insurance laws for both private and commercial vehicle owners. Minimum auto insurance coverage requirements in Vermont are mandated by state law and the Vermont Insurance Division. The following minimum coverage is required on every registered vehicle, except as noted below:

Vermont Auto Insurance Requirements(Source: Vermont Insurance Division)

Driving without the mandatory liability insurance in Vermont is traffic code infraction for the first offense, and could result in a $100 fine and possible license suspension. Subsequent offenses are subject to higher fines, loss of driving privileges, reinstatement fees, and possible jail time.

The Vermont Automobile Insurance Plan is available to drivers who are unable to obtain required coverage through the voluntary market. More information is available on the AIPSO website.

Alternatively, drivers not wishing to carry basic liability insurance in Vermont may self-insure by depositing cash or securities in the amount of $115,000 with the state treasurer, who will issue a certificate of financial responsibility in lieu of an insurance card.

Factors Influencing Car Insurance Premiums in Vermont

Getting a quote for cheap car insurance in Vermont requires some research and rate comparisons between different insurance companies, even though Vermont ranks as the least expensive state in the nation for car insurance costs. Some factors that impact insurance rates in Vermont include:

– Vermont is not a “no-fault” state, and does not require PIP insurance
– Vermont is a “comparative negligence” state, which places greater burden on insurance companies to decide fault percentages when settling claims
– Vehicle repair costs are generally less expensive in Vermont than elsewhere
– Overall accident fatality rates are lower than national averages
– A very low percentage of uninsured drivers compared to national averages
– Auto insurance fraud
– Vehicle theft rates near national averages

The average auto insurance premium for residents in Vermont is $1,518 in 2011; the national average is $1,790.

Tips for Obtaining Cheap Car Insurance in Vermont

– If you’re over 55, take a state-approved defensive driving course for a policy discount
– Several insurance companies offer “pay as you drive” car insurance for low mileage drivers in Vermont
– Maintain a good driving record
– Bind multiple policies (homeowners, life, auto) with the same provider
– Maintain a good credit score
– Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
– Discuss affinity discounts with your insurance provider
– Drop comprehensive and collision insurance on older vehicles

Vermont Statistics

Auto Theft: Vermont has a very low vehicle theft rate, and that rate has continued to decrease consistently (as is the case in most states) over the past 10 years. This can be attributed primarily to anti-theft devices being standard on recent model cars, as well as public awareness of the issue:

Vermont Auto Theft Statistics(Source: Auto Thiefs)

Automobile Accidents: The total vehicle miles traveled in Vermont has remained constant in recent years, as have vehicle accident fatality rates. Vermont is below the national average in numbers of deaths in car crashes.

Vermont Auto Accident Fatility Statistics(Source: National Highway Traffic Safety Administration)

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