Best Car Insurance in Vermont

Last Updated on June 10, 2021

Vermont has some of the cheapest average car insurance premiums in the United States. The average American pays around $1,450 per year for full coverage car insurance, while the average driver in Vermont pays just $1,165 per year. That’s nearly $300 less than the nationwide average!

However, rates vary widely across Vermont. Insurance companies charge different rates based on your demographic data, driving history, ZIP code, credit score, and other factors. Some drivers in Vermont take advantage of discounts to save hundreds, while others pay unnecessarily high rates for car insurance because they don’t shop around.

Top 10 Auto Insurance Companies in Vermont

Drivers in Vermont have regional and nationwide options for car insurance, including small, local insurers and larger insurance corporations. Keep reading to discover the best insurance companies in Vermont.

1. USAA

USAA charges as little as $175 per year for minimum liability coverage in Vermont. For full coverage, you can expect to pay around $454 per year with USAA in Vermont. USAA car insurance is only available to active and retired members of the United States military and certain qualifying members. If you qualify, USAA could be the best insurance company in Vermont for price and customer service.

2. Vermont Mutual

Vermont Mutual is the only Vermont-based insurance company on this list. Like other mutual insurance companies, Vermont Mutual is owned by policyholders – not shareholders or investors. Vermont Mutual keeps rates affordable while protecting the best interests of policyholders, charging around $489 per year for full coverage car insurance.

3. State Farm

Often ranked as the best overall car insurance company in Vermont for overall satisfaction, State Farm combines affordable premiums with reasonable claims satisfaction ratings. State Farm is America’s largest insurance company, and they insure more drivers in Vermont than any other company on this list. Expect to pay around $502 per year with State Farm in Vermont, according to quotes provided to our average driver profiles.

4. Concord Group

Concord Group is based in Concord, New Hampshire. The company has strong customer service ratings and claims satisfaction scores along with competitive prices. Drivers in Vermont can pay around $534 per year for full coverage car insurance with Concord Group, making it one of the best options in the state.

5. GEICO

In many states, GEICO is one of the cheapest insurance companies overall. In Vermont, GEICO’s rates are slightly more expensive than competing providers. Expect to pay around $599 per year for full coverage auto insurance with GEICO in Vermont.

6. Allstate

Allstate is a popular and well-known car insurance company available to drivers across Vermont. With average to strong ratings for claims satisfaction and competitive prices, Allstate also offers a range of discounts for drivers with different needs. Average rates for Allstate in Vermont are priced around $608 per year for full coverage car insurance.

7. Travelers

Another large insurance company, Travelers insures customers across the United States, offering competitive prices and strong service in Vermont. Travelers charges around $632 per year for full coverage car insurance, based on rates provided to our model driver profiles.

8. The Hanover

The Hanover has strong ratings for claims satisfaction, financial stability, and overall user experience. However, like Liberty Mutual and Arbella, The Hanover charges slightly higher rates than competitors in exchange for these higher ratings. Our model driver profiles received average quotes of around $703 per year for Hanover in Vermont, which is still hundreds of dollars less than the statewide average.

9. Liberty Mutual

Liberty Mutual is one of America’s largest insurance companies. With slightly higher rates than competitors in Vermont, Liberty Mutual charges higher rates for higher service. Average annual rates in Vermont are around $756 per year.

10. Arbella

Arbella Insurance Group is a top-rated insurance company known for its high rates of claims satisfaction and customer service. The company isn’t the cheapest insurer in Vermont, but they are one of the best-rated providers. Expect to pay around $783 per year for full coverage car insurance with Arbella in Vermont.

Vermont Insurance Requirements

The Vermont Department of Motor Vehicles requires drivers to carry a certain minimum amount of liability insurance. In Vermont, it is illegal to drive a vehicle if it is not covered by a minimum amount of liability insurance.

Drivers in Vermont must carry the following minimum auto insurance requirements:

  • $25,000 of bodily injury liability coverage per person
  • $50,000 of bodily injury liability coverage per accident
  • $10,000 of property damage liability coverage

Alternatively, Vermont is one of several states that allow drivers to self-insure a vehicle. In Vermont, you can self-insure a vehicle instead of buying an ordinary liability insurance policy. To self-insure a vehicle, you must file self-insurance with the Commissioner of Motor Vehicles in the amount of $115,000. This money shall be used to cover liability in an accident. Most drivers in Vermont buy ordinary car insurance instead of self-insuring a vehicle.

Driving Without Insurance in Vermont

It’s illegal to drive without insurance in Vermont. Drivers will face civil penalties, license suspensions, and SR-22 requirements if caught driving without insurance.

Unlike other states, Vermont does not increase penalties if caught driving without insurance multiple times. However, insurers could raise rates if caught driving without insurance multiple times, as they consider you a high-risk driver.

Penalties for getting caught driving without insurance in Vermont include:

  • A maximum civil penalty fine of $500
  • A fine of $100 for no proof of insurance
  • SR-22 requirement for 3 years
  • License suspension until proof of insurance is provided

Law enforcement officers can ask for car insurance at regular checkpoints, during periodic vehicle inspections, during traffic stops, and at the scene of an accident. Drivers who are unable to provide proof of financial responsibility when requested will face penalties.

Car Insurance in Vermont with DUI

Car insurance is cheap in Vermont, compared to other states. However, car insurance rates rise substantially after a single DUI in Vermont. If you have one DUI on your driving record in Vermont, then your insurance premiums could double. Drivers with multiple DUIs could have their car insurance request denied, forcing them to work with a high-risk auto insurance provider.

Some car insurance companies continue to charge affordable rates even after a DUI in Vermont, including:

  1. USAA: $1,457 per year
  2. Vermont Mutual: $1,476 per year
  3. State Farm: $1,523 per year
  4. Progressive: $1,549 per year
  5. Concord Group: $1,638 per year

Car Insurance in Vermont with At-Fault Accidents

Like a DUI, an at-fault accident will raise rates. Unless you have accident forgiveness, your at-fault accident will raise car insurance rates by 40% to 80% in Vermont. However, some insurers continue to charge cheap rates after one or more at-fault accidents, especially if you have an otherwise clean driving record:

  1. USAA: $1,237 per year
  2. Vermont Mutual: $1,356 per year
  3. State Farm: $1,501 per year
  4. Progressive: $1,542 per year
  5. Concord Group: $1,558 per year

Car Insurance in Vermont with Speeding Tickets

Getting a speeding ticket in Vermont will raise car insurance rates, although rates won’t rise as much as they do with at-fault accidents or DUIs. Some insurers, in fact, don’t raise rates at all for a single speeding ticket, especially if it’s a minor offense. Other insurers raise rates significantly after multiple speeding violations, regardless of severity.

  1. USAA: $757 per year
  2. Vermont Mutual: $776 per year
  3. State Farm: $823 per year
  4. Progressive: $859 per year
  5. Concord Group: $902 per year

Car Insurance in Vermont for Young Drivers

Each year, young drivers in Vermont cause more at-fault accidents than drivers of any other age group. As a young driver in Vermont, you’ll pay higher insurance rates to cover the added insurance risk. Fortunately, some insurance companies charge comparatively cheap rates to young drivers in Vermont because they like balancing the insurance pool. Other companies charge relatively expensive rates to young drivers because they don’t like the added risk.

  1. USAA: $1,657 per year
  2. Vermont Mutual: $1,667 per year
  3. State Farm: $1,700 per year
  4. Progressive: $1,709 per year
  5. Concord Group: $1,838 per year

Car Insurance in Vermont with Poor Credit

Drivers with a bad credit score will pay higher insurance premiums in Vermont. As a driver with a bad credit score, you’re riskier to insure. Statistically, you’re more likely to file a claim, cause an accident, and miss insurance payments. Even if you’re a safe driver with a clean record, you’ll pay more for car insurance because of your credit score.

Fortunately, some insurers weigh credit score less heavily than others, including the following Vermont insurers.

  1. USAA: $1,957 per year
  2. GEICO: $2,002 per year
  3. State Farm: $2,034 per year
  4. Vermont Mutual: $2,176 per year
  5. Concord Group: $2,438 per year

SR-22 Insurance in Vermont

The SR-22 is a certificate of financial responsibility that verifies you meet minimum car insurance requirements in Vermont. The Vermont Department of Motor Vehicles (DMV) may send you an alert notifying you of SR-22 requirements. Your insurer must file the SR-22 certificate to the DMV on your behalf to reinstate your license and driving privileges.

If you need SR-22 coverage in Vermont, then you can get SR-22 insurance from any major insurer. Most insurers charge a filing fee of $15 to $30. All insurers charge higher rates to drivers with SR-22 requirements, as they consider you a higher risk driver to insure. Some drivers must also work with high-risk auto insurance companies to get insurance, as ordinary insurers will refuse their service.

If you require SR-22 insurance, then you must file the SR-22 with the DMV for three years while maintaining a clean driving record. After three years, you can resume buying insurance from the ordinary marketplace.

Most insurers charge 50% to 150% higher rates to drivers that require an SR-22. If you need SR-22 insurance, then your rates will remain high for the next one to three years. Insurers charge higher rates to cover your higher risk.

The DMV will not reinstate your driving privileges or license until you submit valid financial responsibility coverage (via the SR-22 certificate) to the DMV.

Conclusion: How to Find the Best Auto Insurance in Vermont

Drivers in Vermont must carry car insurance to comply with minimum legal limits in the state. Failing to carry the minimum required amount of car insurance will lead to penalties.

Vermont has relatively cheap car insurance premiums compared to the rest of the country. However, drivers can save even more money by shopping around, taking advantage of discounts, and comparing quotes. Request a quote from any of the top insurance companies in Vermont listed above to get the best insurance for your unique needs.