The state of Vermont takes its car insurance requirements seriously. Drivers in Vermont are required to purchase the basic minimum limits of liability insurance. Plus, finance companies and lenders in this state will force drivers to also purchase comprehensive and collision insurance to protect their investment until the loan or lease has been paid off. The minimum limits to fulfill the financial responsibility requirements in Vermont are:

$20,000 per person per accident

$40,000 per accident

$15,000 for property damage

The penalties for not following the Vermont auto insurance laws can be pricey. Those who cannot provide proof of financial responsibility or auto insurance when asked by an officer will face a fine between $175 and $350 for the first violation. If irresponsible enough to get caught again, motorists can expect to be charged between $350 and $1,000 in fines. Also, drivers could get their license suspended or have their car impounded by driving illegally without car insurance.

A statistic released in early 2012 shows that the State of Vermont enjoys the lowest uninsured driver rate in the country. The area’s strict legal processes and the rough winters combine to make for low premiums in this state. The average insurance premium rate in the country is around $1,500. However, drivers in Vermont pay an average of $995 for their insurance policies. This numbers were calculated by comparing premiums from six top car insurance companies and over 2,000 cars through ten different zip codes in each state.

In the fall of 2011, the State of Vermont and the Vermont Insurance Division considered some more legislation that would change the way car insurance works in Vermont. One bill suggested raising the rates/fines to make a more convincing argument for not operating a vehicle without insurance. Another bill suggests raising the area’s premiums, the lowest in the country, to adjust for inflation. Yet another is a bill that would implement the new, popular pay as you go approach. Pay as you go is a usage based method for determining a driver’s rates. The less frequently the vehicle is used, the less the owner would need to pay in auto insurance costs.

It seems a shame to mess with a good thing since the state already boasts such a low premium costs. Plus, Vermont also ranks in the Top 5 for states with a low percentage of uninsured drivers. Only 7% of the motorists in Vermont driver their vehicles without the legally required minimum liability insurance.

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