Cheap Auto Insurance in Vermont
Auto Insurance Requirements in Vermont
If you want to drive your own vehicle in Vermont will have to prove to the state that you have the means of paying any bills you might incur as a result of a traffic accident. Most people do that by simply purchasing an affordable car insurance policy from any number of companies that sell insurance in Vermont. However, there are a couple of other options for you to choose from:
• purchase a bond from an authorized surety company
• prove to the Commissioner of Motor Vehicles you have the financial resources to self-insure at a minimum of $115,000 per accident
If you choose one of these two options the burden of proof must be met before you can get your vehicle inspected. This is a great idea because passing inspection results in a sticker being placed on the vehicle; a sticker that is easily spotted by police officers. Without a current inspection sticker you’re just asking to be pulled over.
Minimum Car Insurance Policies in Vermont
Should you choose to purchase a cheap car insurance policy you’ll start with the product generally referred to as 25/50/10 coverage. These numbers represent tens of thousands of dollars applied to bodily injuries, deaths, and property damage.
The number 25 refers to $25,000 paid to someone you injure, or the family of someone who may have died. The number 50 represents $50,000 of identical coverage for multiple victims of a single accident. Finally, the number 10 refers to $10,000 paid to cover the cost of property damage.
Though Vermont law does not require personal injury protection (PIP) or uninsured/underinsured motorist (UM) insurance, you can still buy them as optional coverages. In addition, you’ll need comprehensive and collision as long as you have an outstanding loan on your car. If you fail to purchase them your bank does have the legal right to acquire a policy on your behalf and then charge you for it. Rest assured a bank purchased policy won’t be the cheapest car insurance around.
Providing Proof of Insurance
Insurance companies selling policies in Vermont will generally inform the state electronically when you purchase a new policy. They should also send you either an insurance ID card or a policy declaration page. Either of these documents can be used to show proof of insurance at the time of vehicle registration or inspection. You also need to keep a copy of one of these documents in your car to show a police officer in the event of an accident or traffic stop.
If you’ve chosen to post a surety bond or self-insure, you should have documentation provided by the state. Should you be unable to produce proper documentation when requested by a police officer you will be given 15 days to do so before being subject to certain penalties. If you’re found to be driving without insurance you face significant fines at the very least. You can also have your registration suspended and your driver’s license revoked under certain circumstances.