With its beautiful scenery and high quality of life threshold, Vermont consistently ranks as one of the best places to live in the United States. On top of its traditional draws, Vermont also claims some of the lowest average auto insurance rates across the country, averaging premiums of about $750. And drivers in Vermont could see rates go down even more over the next few years as the state government has implemented new inspection policies and procedures.

Vermont Minimum Liability

Vermont has a minimum requirement of auto insurance coverage that a driver must keep on any vehicle that is driven on the road. These coverage amounts are designed to protect the driver, their passengers, and anyone else that may be involved in accident. Ignoring the minimum requirements, or driving without insurance at all, could net you some serious fines up to $500, or even cost you your license. It could also leave you financially — maybe even criminally — responsible in the event of an accident. Vermont requires you to carry at least $25,000 of bodily injury liability covering each individual involved, $50,000 bodily injury liability as a cap per accident, and $10,000 of property damage coverage to cover damages. Vermont also requires drivers to carry Uninsured/Underinsured protection, with a $50,000 limit of bodily injury per person, and a $100,000 limit on all injuries caused in a single accident.

  • $25,000 bodily injury coverage per person
  • $50,000 bodily injury coverage per accident
  • $10,000 property damage coverage per accident
  • $50,000 bodily injury coverage per person (Uninsured/Underinsured Motorist)
  • $100,000 bodily injury coverage per accident (Uninsured/Underinsured Motorist)

In standard insurance-speak, these numbers are most often abbreviated as: 25/50/10, UM/UIM.

While Vermont does require more coverage than some states like Arizona or California, opting for the least amount of legal protection could still leave you in a bind after even a moderate accident. This is especially evident in the low requirements for property damage coverage at only $10,000.

Just imagine you find yourself in a relatively minor fender-bender with an modern mid-size SUV, which averages around $33,000 in value in today's market. Even the base model of that vehicle probably came equipped with a back-up cam, electric lift gate, heated glass, and any number of miscellaneous sensors, electronics, and high-tech materials. Costs to repair or replace can quickly outpace the measly $10,000 in coverage your bare-bottom plan will take care of. After that, you’ll be on the hook for the remainder of the damages.

It’s very important to be fully covered in the event of even the most minor accidents, which is why we advise maintaining at least twice the minimum state requirements for Vermont. In a state where coverage can be found very affordably, it’s relatively easy to find comprehensive coverage that will back you up in even some of the worst incidents.

How We Found the Best Auto Insurance in Vermont

To find the best auto insurance in Vermont, we started by looking at the top companies according to market share. This gave us a good idea of who was popular in the area and might be providing the best services based on their significant customer following. Beyond that, we used methodology very similar to our national review of the best auto insurance companies. We vetted customer satisfaction ratings based on major studies produced by J.D. Power and Consumer Reports. We looked at coverage options, discounts, financial backing, and a host of other characteristics to find out who would offer the best coverage for drivers in Vermont.

Vermont Auto Insurance Reviews

State Farm

State Farm makes the top of our list because of its high marks for customer service quality and their impressive range of coverage options. J.D. Power and Associates ranks State Farm in the top 10 of its auto insurance claims satisfaction study — the only provider we looked at to make it that high. Even more impressive is State Farm making the top 5 auto insurers for the New England region as found in J.D. Power’s more localized auto insurance satisfaction study. Topping off its customer appreciation scores, State Farm earned the highest Consumer Reports total reader score out of these top insurers with an 89/100.

State Farm backs up its terrific claims satisfaction numbers with the most impressive range of coverage available. Some of the most notable and unique include custom parts or sound system protection, which it shares only with Allstate and Progressive. There are also accident forgiveness and new car replacement endorsements — matched only by Liberty Mutual.

State Farm also offers rideshare protection, a rare bit of coverage in the auto insurance world. That makes it our top pick for rideshare drivers who make a couple extra bucks on the weekend or make a full time living with services like Lyft or Uber. State Farm has the most inclusive coverage that far extends the standard policy covering you from your transportation network company (TNC), whose coverage policies are generally more focused on protecting the app creators or TNC.


Allstate is a very close second to State Farm in many ways. It ranked just one point lower in Consumer Reports’ reader survey covering the entire claims process. It actually beat out State Farm with a score of “excellent” for its timely payouts of claimed damages, and matched its ranking of “very good” for simple claims process from incident to payment. Allstate is also the most closely matched in financial strength to State Farm, with high financial stability scores from financial evaluation firms like A.M. Best and Moody’s. This means customers can be confident in Allstate’s ability to back up even the most substantial claims and sustain its coverage well into the future.

Allstate is also the king of discounts. It has great coverage like State Farm, but really shines by giving you options to save on your premiums. If you’ve held continuous insurance coverage on your vehicle for the life of your ownership, you’ll automatically qualify for a quick 5% off your total premium. Progressive is the only other insurer who explicitly offers this easy-to-meet requirement for some immediate savings. Allstate also has totally unique discounts, like early signup for a 10% savings if you sign up seven days before your old policy expires.

Allstate’s Safe & Smart Student Discount makes it our top choice for students. This is one of the largest discounts in the auto insurance industry. If you have a full-time student 25 years or younger, they can take Allstate’s teenSMART driver education course to double up on discounts. And if they’re enrolled in a school at least 100 miles from your residence, you could take home a gigantic 35% savings on your total premium.


Much like our top two picks, Progressive raked in average-to-high marks from both J.D. Power (3/5 stars, an industry standard) and Consumer Reports (87/100). It was the only other provider, along with Allstate, to be rated “excellent” for timely payments on processed claims from Consumer Reports.

Progressive is the most closely matched with State Farm for optional coverage and special endorsements. It offers a rarely found coverage for gap loan/lease payoff, which will cover the difference on a totaled car when remaining payments cost more than the value of the car itself. That makes it an excellent insurer for anyone making a major purchase on a brand-new vehicle or those who are consistently making absolute minimum payments on a long-term lease.

Progressive is also our top pick for animal lovers. It’s the only major carrier that offers an additional pet protection coverage, which will take care of vet bills that result from an accident with your furry loved ones in tow.

Liberty Mutual

Liberty Mutual carries an impressive range of auto insurance coverage options and discounts that make it very competitive in this list of top performers. It also carries excellent financial forecast and stability scores. Unfortunately, Liberty scored lower than the majority of carriers in J.D. Power and Associates’ national study on auto insurance claims satisfaction. With a 2/5 overall score, generally stemming from payout-amount concerns, Liberty slipped to the bottom of our list. However, in J.D. Power’s more localized, sister-survey, New England customers actually ranked Liberty Mutual in the top 10 for overall policy satisfaction from original purchase to claim fulfillment. We feel Liberty Mutual is still a top choice for drivers in Vermont who may actually experience a much better level of customer service than others around the country.

Liberty Mutual is our top choice for anyone in transition, whether that's transition from working to retired, single to married, or student to graduate. It’s the only insurer that specifically seeks out all these people experiencing major life changes and adjustments and offers them individual savings based on their current situation. Liberty mutual also offers an exclusive vanishing deductible. Every year you go without incident, Liberty Mutual will give you $100 towards your deductible charge until it’s eliminated. Even if you have an accident, your deductible won’t go up from the savings you’ve already amassed, and beginning the next policy year you’ll continue your way toward a $0 deductible.

You Really Can Save Money by Comparing Quotes

You’ve probably noticed that we didn’t bring up quotes in the reviews above, or recommend any provider based on the specific quotes we got in our research. That’s because each quote is based on a host of personal factors from the address of your residence, to your personal credit history, to the individual features found on your specific vehicle. Additionally, every insurer has their own proprietary algorithms that calculate risk and assign values to various aspects of your personal situation. Therefore, it’s impossible to tell you who will have the best deal for you, but it does make a very compelling argument for shopping around. Check out our quotes for our hypothetical driver: a 26-year-old man living in South Burlington and driving a common eight-year-old, four-door sedan.

6-Month Premium
Liberty Mutual
State Farm

All quotes are for 100/300/100, UM,UIM coverage.

With only four quotes (which took less than an hour), we found a savings spread of more than $500. Notably, Allstate, our top pick for discounts, was actually out most expensive policy quote. This is a perfect example of how much your specific situation affects your quote. You won’t know who has your best deal until you take the time to shop around and find the right auto insurance for you, taking into account your specific coverage needs and discount qualifications.

Policy and Laws Shaping Auto Insurance in Vermont

In 2017, Vermont caught up with the technology age and switched its dated paper-based vehicle inspection system to a new automated digital system. This switch gave the state government much greater oversight of a system that was often taken advantage of prior to the new software. With the implementation of stricter inspection guidelines and procedures, the threshold for a state-certified vehicle (legal to drive on the highway) was greatly increased. The hope is that by eliminating loopholes and making it harder to “beat the system” with an underperforming, possibly unsafe car, Vermont roadways will see a direct correlation in decreased accidents and issues. If this goal is reached, drivers in Vermont can expect to see a direct impact on auto insurance premiums, reflecting the improved standards for keeping vehicles on the road.