Insuring Your Vehicle in Vermont

Auto insurance is part of life, whether you're a longtime driver or a person getting ready to purchase a new vehicle. But depending on the state in which you live, the laws that dictate automobile policies and how much you're obligated to get could vary greatly. In fact, did you know that some jurisdictions don't technically require you to be protected? No matter where you live, it's extremely important to understand your state's laws and make sure that your policy not only meets the requirements, but also is comprehensive enough to provide you with the best product for your money.

Just like shopping for an auto loan, the Internet is revolutionizing the way consumers seek out auto policies. In fact, many consumer advocates strongly recommend getting competitive quotes from insurance companies online. This way, you can compare policies next to one another and verify that you're getting the peace of mind you need at an affordable price. Remember to use your state's guidelines as a starting point - industry experts say that your coverage should far exceed the mandatory minimums.

Standards You Should Meet

Vermont is one of a few states that have an unusual guideline called "proof of financial responsibility." With this regulation, you in theory are not required to get a policy. You could also satisfy the state's requirement by proving that you are financially responsible for the costs associated with an accident. In the case of Vermont, this means that you must prove that you have $115,000 available as "self insurance." The state will require you to file paperwork that proves you have this cash on hand. While this might sound like a great idea, remember that even a simple fender bender can cost thousands upon thousands of dollars. An adequate policy is strongly recommended to provide comprehensive coverage and protection.

If you get a plan, the state of Vermont does outline mandatory minimums for all policyholders. When you get a policy, it will be required to compensate at least:

  • $25,000 for injury or death to one person
  • $50,000 for injury or death to more than one person
  • $10,000 for property damage

Remember that these are merely minimums and you should get a plan that far exceeds these standards. You may be surprised at how affordable complete and comprehensive coverage will be. Make sure to go over all your options with your insurance provider before deciding on the type of coverage you ultimately will receive.

Once you get protected, you will be required to provide proof of it. The best way to do this is by carrying your proof of coverage card in your vehicle's glove box at all times. This will be particularly helpful if you are in a minor accident, are pulled over for a traffic stop, or if your car is inspected. You may be required to provide this before you can even register your vehicle. Vermont has a series of penalties for drivers who fail to comply with the aforementioned regulations. They range from fines to the assessment of points on your driving record to even the possible suspension of your driver's license. Make sure you are in compliance with the laws before driving on public roads.

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