Auto Insurance In Vermont
Vermont is one of the majority of the states that requires a motorist to have car insurance. It also has stringent laws regarding financial responsibility insurance requirements. It is definitely much more strict than its eastern neighbor New Hampshire, where you’re technically not even required to have car insurance (although it’s highly advised).
Laws About Auto Insurance in Vermont
The minimum coverage for auto insurance in Vermont is 25/50/10, which means you must have a minimum of $25,000 for bodily injury per person, $50,000 total bodily injury liability and $10,000 in property damage when and if a wreck occurs. The Green Mountain State also has specific laws requiring financial responsibility insurance. You must have the same minimum coverage or be able to show evidence that you have at least $115,000 in the bank. Vermont law states that the commission can require the insured to show evidence of financial responsibility before the vehicle inspections. Anyone who violates the auto insurance in Vermont law and is uninsured can be fined up to $100, and can count as a traffic violation, according to the law. Financial Responsibility Insurance covers an individual, who is therefore allowed to drive any vehicle even if he or she doesn’t own it.
Getting the Cheapest Auto Insurance in Vermont Rates Possible
The Green Mountain isn’t a cheap state. It actually ranks as one of the least tax friendly state — in some rankings it receives the dreaded No. 1 spot for most burdensome tax state. The tax burden is about 14 percent of the per capita income, much higher than Alaska, where the tax burden is only 6.6 percent of the per capita income. Its real estate isn’t cheap either, so if you move here, you may want to look for ways to save in all aspects of life.
The average car premium for auto insurance in Vermont was $786 in 2003, actually lower than the national average of $914, but the rates had been going up quickly for four years. You may want to axe the collision and comprehensive coverage and just stick with the basic liability if you’re looking to reduce your premiums as much as possible for auto insurance in Vermont. But remember getting rid of the coverage can come with a risk, and that you may regret doing so if you’re in an accident and your vehicle is totaled. Generally, you’ll want more coverage on a new car, and less coverage on an old car, since it won’t be quite as costly to pay for a replacement for an old clunker. Keep in mind that the risk factor can be much higher during the winter and even spring months in Vermont, since it snows much more here than in the southern states. Either way, make sure you drive safely and abide by the speed limit to keep the auto insurance in Vermont rates as low as possible. Like most other states, underwriters in Vermont check your claim history and driving record and are more than likely to increase your rates if you don’t have the best record. Sometimes the make and model of car you purchase can affect your insurance rate. For example, a Honda Civic, Honda Accord, Toyota Camry, Ford F-150 and Dodge Ram Pickup can be especially popular for thieves. Sometimes certain cars are targeted for thieves because they expect to have an easy time selling the parts. Another tip in getting a low rate for auto insurance in Vermont is to purchase both your car insurance and homeowners insurance from the same company.
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