Car insurance for Vermont is mandatory. Under the Vermont Annotated Code Chapter 23, all drivers driving in Vermont must carry proof of car insurance at all times. It is also a requirement to provide proof of car insurance when registering a vehicle. The required minimum amount of car insurance coverage is $25,000 for the death or injury of one person per accident, $50,000 for the death or injury of two or more persons per accident and $10,000 for property damage per accident. Although these are the state minimum requirements, but it is advisable to have higher coverage so you will not have to pay out of pocket for expenses for serious accidents. It is also recommended to have the uninsured and underinsured Vermont car insurance coverage in case of a hit and run or the responsible party does not have enough coverage.

If you fail to show proof of car insurance for Vermont when requested by law enforcement, you will be given 20 days to present your proof of insurance. If you still can not present proof of insurance you will get a ticket and two points added on to your driving records. You will also have to pay the fine of $100 and file the proof of financial responsibility or SR-22 with the DMV for three years. The SR-22 is special insurance, covering the person and not the vehicle. With the SR-22 your insurance company will inform the DMV that you are insured and if you ever cancel your insurance.

Now, if you are caught driving without car insurance and get involved in an accident, you will have to face the penalties stated above and the Commissioner of Motor Vehicles will also temporarily revoke your license. The same applies if you are caught without insurance and driving under the influence of drugs or alcohol, caught fleeing a collision, driving in reckless manner resulting in the death of one or more people, driving with suspended license or driving a car without the owners consent.