Cheap Car Insurance, Vermont: Your Complete Guide

Car insurance is a necessity for all drivers in Vermont. Finding cheap car insurance in the state is important for maintaining safety and financial peace of mind. In this guide, we’ll break down everything you need to know about Vermont car insurance, including the cheapest car insurance companies for your profile and what impacts your insurance premiums.

Average Cost of Car Insurance in Vermont

On average, Vermont drivers pay $1,610 per year for full coverage and $351 per year for minimum coverage.

These rates are lower than the national average because Vermont is a rural state with low population density. This means there is less traffic congestion, which leads to fewer accidents and, thus, fewer claims. Our list of the cheapest car insurance rates by state ranks Vermont second, behind Idaho.

However, note that the exact amount you will pay for auto insurance in the Green Mountain State will differ depending on factors such as age and driving history. This is why you should compare quotes from multiple companies, accessing the best car insurance rates for you.

The cheapest car insurance company in Vermont for minimum and full coverage is Union Mutual at $162 and $755 per year, respectively.

Source: Cheapest car insurance in Vermont for 2025 (Bankrate)

Factors that Affect Auto Insurance Rates in Vermont

Besides the company you choose, other factors that affect car insurance rates are:

1. Driving History: A clean driving record with no accidents or violations results in lower insurance rates. But speeding tickets, DUIs, and accidents lead to higher premiums.
2. Age: Younger drivers, especially teens, are considered high-risk by insurers, which leads to higher premiums.
3. Credit Score: In Vermont, insurance companies can use your credit score to help determine your rate. A lower credit score results in higher insurance costs.
4. Location: Where you live matters. For example, drivers in cities with higher traffic volumes or crime rates will pay more for insurance.
5. Type of Coverage: The type of coverage you select will affect your insurance rates. Full coverage insurance is more expensive than minimum coverage because it offers more protection.
6. Vehicle Type: Cars with high repair costs or high theft rates tend to be more expensive to insure. SUVs and luxury vehicles generally cost more to insure than economy sedans.
7. Driving Distance: If you drive more miles than average, your insurance rates may increase because you're considered a higher risk. On the other hand, drivers who use their cars less often may qualify for car insurance discounts.

Cheapest Car Insurance, Vermont, for Different Age Groups

Teens (17-Year-Old)

Insurers consider teen drivers in Vermont a high-risk because they have little driving experience and are more likely to be involved in high-risk behavior. Co-operative offers the cheapest car insurance policy to these drivers at $2,670 per year. The following companies also offer affordable rates:

Source: Cheapest Car Insurance in Vermont for 2025 (US News)

Young Adults (25-Year-Olds)

Young adults will see lower premiums than teens. Those with a good driving history may get even more affordable rates. The cheapest company for these drivers is USAA, which offers $1,115 for female drivers and for $1,163 males per year.

However, note that USAA only serves military personnel and their family members. If you do not qualify for USAA, the second cheapest option is State Farm.

Source: Cheapest Car Insurance in Vermont for 2025 (US News)

Adults (40-Year-Olds)

Adults benefit from the most affordable rates because insurance companies see them as more financially stable and thus less likely to file a claim. Also, drivers in this group who insure more than one car may qualify for multi-car discounts that can help reduce overall costs. Drivers in this group can get the lowest rates from USAA: $829 for females and $831 for males. If you do not qualify for USAA, consider Auto-Owners, which offers the next-best rates.

Source: Cheapest Car Insurance in Vermont for 2025 (US News)

Seniors (60-Year-Olds)

Senior citizens often see lower rates. Some also qualify for low-mileage discounts. The most affordable company for senior drivers is USAA, who offer $774 and $775 per year for females and males, respectively. The next cheapest option is Co-operative at $777 per year.

Source: Cheapest Car Insurance in Vermont for 2025 (US News)

Cheapest Car Insurance in Vermont by City

The cost of car insurance in Vermont varies depending on where you live. Cities with higher population density and traffic volume often have a higher risk of car accidents, leading to higher insurance rates. On the other hand, drivers living in rural areas with no severe weather incidents or animal crossings may have more affordable insurance. The cities with the lowest average rates in Vermont are:

Source: Cheapest car insurance in Vermont for 2025 (Bankrate)

Union Mutual offers the cheapest rates in these cities at $145 per year for minimum coverage.

Cheapest Auto Insurance, Vermont for High-Risk Drivers

Good drivers with no traffic violations get lower rates than high-risk drivers. High-risk drivers are those with speeding violations, DUIs, and accidents on their record. Insurers see these drivers as higher risk, so they pay higher rates. According to US News, high-risk drivers pay averages of:

• With one speeding ticket: $1,621
• With one at-fault accident: $1,832
• With one DUI: $3,183

However, some companies provide lower rates than these, helping high-risk drivers save money. Here's a closer look at these categories:

Speeding Ticket

A single speeding ticket can raise car insurance costs by hundreds of dollars per year in Vermont. The most affordable company for drivers with a speeding violation is Union Mutual at $1,018 per year. Other affordable companies include USAA and State Farm.

Car Accident

On average, drivers with a recent accident on their record in Vermont can expect an increase of between $300 and $550 annually, or more. Union Mutual offers the most affordable rates at $879 per year. Vermont Mutual and State Farm are also good options.

DUI

A DUI is the most severe violation of the three. However, State Farm offers much lower rates than the state average for this group at $1,149 per year.

Source: Cheapest car insurance in Vermont for 2025 (Bankrate)

Cheap Auto Insurance in Vermont for Poor Credit Drivers

People with good credit can get affordable auto insurance rates. Drivers with poor credit often pay higher car insurance premiums because insurers view them as more likely to file claims. However, poor credit drivers can often get cheaper car insurance coverage by improving their credit scores. Nationwide offers affordable car insurance to these drivers at $1,469 per year.

Source: Cheapest car insurance in Vermont for 2025 (Bankrate)

Tips for Getting the Cheapest Vermont Car Insurance

Vermont drivers can find cheap car insurance in Vermont by following these tips:

• Shop Around: Always compare car insurance quotes from multiple companies to find the best deal.
• Bundle Policies: If you need home or renters insurance, consider bundling it with your car insurance to save on premiums. Also, some providers offer discounts if you insure multiple cars.
• Maintain a Clean Driving Record: Avoiding accidents and traffic violations will keep your premiums low over time.
• Choose the Right Coverage: Only purchase the coverage you need. If you have an older car, consider dropping comprehensive or collision coverage.
• Take Advantage of Vermont Car Insurance Discounts: Many insurers offer discounts for safe driving, being a good student, having anti-theft features in your car, low mileage, and loyalty.
• Increase Your Deductible: Raising your deductible can lower your premium. Just make sure you can afford the financial responsibility in case of an accident.

Minimum Car Insurance Requirements in Vermont

Vermont law, through the Vermont Department of Motor Vehicles, requires drivers to carry the following minimum car insurance coverage:

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

Bodily injury liability insurance helps pay for the medical expenses of others you injure in an at-fault accident. Property damage liability helps pay to repair or replace the other person's damaged property.

Uninsured/underinsured motorist (UM/UIM) coverage helps pay for your and your passengers’ medical expenses and property damage if you’re in an accident with an uninsured driver or one whose limits are not enough to cover your costs.

It's important to note that these minimum requirements may not be enough to protect you in serious accidents, such as those involving multiple cars. Therefore, some drivers exceed these state minimums. The higher coverage limits offer better protection but will cost more. Always assess your financial situation before choosing higher coverage levels.

Additional Coverages in Vermont

Drivers can get additional insurance on top of the minimum required coverage. They include

• Collision Coverage: Covers damage to your car from a collision, regardless of who is at fault.
• Comprehensive Coverage: Protects against non-collision incidents such as theft, vandalism, fire, or weather-related damage.
• Roadside Assistance: Provides emergency services such as battery replacement, tire changes, minor repairs, and fuel delivery.

Frequently Asked Questions

What is the Best Car Insurance Company in Vermont?

The best auto insurance company for you depends on your profile and driving history. For example, Union Mutual offers the best car insurance rates to drivers with a speeding violation, while USAA provides the best auto insurance rates for seniors in Vermont.

How Do I Show Proof of Car Insurance in Vermont?

You can show proof of auto insurance in Vermont through an insurance card issued by your provider. Alternatively, you can use an electronic version on your smartphone. Always carry proof of car insurance coverage, as authorities may ask you to present it.

How Do I Get the Cheapest Auto Insurance in Vermont?

Compare quotes from multiple companies, consider raising your deductible, improve your credit score, and make use of available discounts to find the cheapest Vermont auto insurance.

Is Vermont a No-Fault State?

No, Vermont is not a no-fault state. This means that the at-fault driver is responsible for covering the damages.

Is it Illegal to Not Have Car Insurance in Vermont?

Yes, it is illegal to drive without car insurance in Vermont. Driving without insurance can lead to fines and a suspended license.