Cheapest car insurance in Vermont for 2024

In a state renowned for its sparse population, Vermont residents often enjoy more affordable car insurance rates compared to the national average. For instance, the average cost for minimum coverage in the state is approximately $314 per year, significantly lower than the national average of $644. Full coverage in Vermont averages around $1,380 per year, while the U.S. average is nearly double at $2,314. However, your rate may vary based on individual factors, such as driving history, claims record and vehicle type.

Car insurance is a highly personalized product, so those seeking the cheapest car insurance in Vermont should consider a range of providers. Exploring cheap auto insurance in Vermont and comparing different insurers can help drivers find a policy that best suits their individual coverage needs and budget.

Key takeaways

• Cheapest company for minimum coverage: Union Mutual
• Cheapest company for full coverage: Union Mutual
• Cheapest company for drivers with prior incidents: Union Mutual
• Cheapest company for young drivers: USAA

In Vermont, drivers often consider liability-only, or minimum coverage car insurance, for its affordability. Though cost-effective and compliant with the car insurance laws in your state, it’s important to note that this basic coverage offers limited financial protection and could lead to higher out-of-pocket costs after an accident. Among insurers in Vermont, Union Mutual stands out for offering cheap average minimum coverage rates. However, drivers should assess if this balance of lower premiums and reduced coverage suits their individual needs and risk tolerance.

Minimum coverage requirements for Vermont drivers

To comply with Vermont state laws, drivers are legally required to carry the following amount of car insurance:

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

For ultra-cheap car insurance, Vermont drivers may consider purchasing a minimum coverage policy. While minimum coverage almost always comes at a lower price, it also offers less financial protection. Minimum coverage car insurance only covers the damage you cause to others during an accident. If you were at fault for an accident and your vehicle was damaged, you would need to front those repair costs yourself. Additionally, the liability limits may not be high enough to cover the damage and injuries others sustain if you are deemed at fault for an accident.

If you lease or finance your vehicle, your lender may require you to purchase a full coverage policy. While the definition of a full coverage policy may be different with each carrier, it almost always includes comprehensive and collision coverage. Adding coverage will most likely increase your monthly premium but may provide you greater financial protection after an accident and in other scenarios, like if your vehicle is stolen.

When considering full coverage car insurance in Vermont, drivers often look beyond the state's minimum requirements to ensure more well-rounded financial protection. Full coverage typically includes liability, collision and comprehensive insurance, covering a wider range of scenarios, from accidents to non-collision-related damage. While this option generally comes with higher premiums, it may offer peace of mind through enhanced coverage. Among the various providers in Vermont, Union Mutual is recognized for its competitively priced full coverage options.

Drivers with prior incidents on their records, such as tickets or at-fault accidents, often face higher car insurance rates due to the increased risk perceived by insurers. Drivers with incidents on their motor vehicle records are viewed by insurance companies as more likely to drive recklessly in the future, which could mean they’ll file more claims that cost their insurers. To account for the added risk, drivers with prior incidents are often charged higher car insurance rates.

However, several insurance companies in Vermont specialize in offering more affordable options for such drivers. These carriers provide solutions that consider the unique circumstances of individuals with a history of driving incidents and strive to offer competitive rates without compromising on coverage quality. The following sections will explore the cheapest car insurance options in Vermont for drivers with prior incidents.

• Cheapest car insurance for drivers with a ticket: Union Mutual
• Cheapest car insurance for drivers with an at-fault accident: Union Mutual
• Cheapest car insurance for high-risk drivers: USAA

Cheapest insurance companies for drivers in Vermont with a speeding ticket: Union Mutual

Speeding ticket convictions in Vermont may also cause your rates to increase. Drivers who have been convicted of speeding may be deemed high-risk by their insurance providers, which means that they will likely wind up paying more each month for car insurance coverage. Even with a speeding ticket on your record, it may still be possible to get cheap car insurance in Vermont from the providers listed below.

Cheapest car insurance for drivers in Vermont with an at-fault accident: Union Mutual

Similar to speeding ticket convictions, getting into an at-fault accident may also cause your rates to climb. Drivers who have been involved in recent accidents are typically seen as more at risk for future accidents. More accidents lead to more insurance claims, which can cost your insurance provider. If you haven't been in an accident but are concerned about the potential rate impact of a crash, you might consider accident forgiveness coverage if your carrier offers it.

Cheapest rates in Vermont for high-risk drivers: USAA

Most carriers categorize drivers with a DUI conviction, multiple speeding tickets, accidents or instances of driving without insurance as high-risk. High-risk drivers in Vermont typically face above-average premiums for car insurance and may encounter difficulties obtaining coverage from some insurers. Being honest and forthcoming about your driving record is crucial to determining eligibility for coverage with a specific carrier.

Age is a significant factor that insurance companies consider when determining car insurance rates in Vermont. Teens and young adults often face higher premiums due to their relative inexperience behind the wheel, which statistically links to a higher likelihood of accidents and claims. This age-related increase in rates is a common industry practice, reflecting the increased risk insurers associate with younger drivers. The following sections will detail the most cost-effective insurance options in Vermont for various scenarios involving young drivers.

• Cheapest car insurance for insuring a teen driver: USAA
• Cheapest car insurance for teens with a ticket: USAA
• Cheapest car insurance for teens with an at-fault accident: USAA
• Cheapest car insurance for young drivers with a DUI: Allstate

Cheapest Vermont car insurance for insuring a teen driver: USAA

Teen drivers in Vermont, due to their inexperience and higher accident risk, typically face higher car insurance premiums. However, insurers offer ways to mitigate these costs through teen-specific discounts, such as good student discounts. Such considerations can be helpful for families seeking cost-effective insurance solutions while managing the added expenses that come with a teen driver hitting the road. Note that the rates discussed below apply to a 16-year-old driver included on their married parents' policy.

Cheapest Vermont car insurance for teens with a ticket: USAA

Teen drivers in Vermont who have received a speeding ticket may find their car insurance rates impacted significantly. For these young motorists, Bankrate found a list of some of the more affordable insurers in Vermont for this specific driving profile.Here, the rates that are reflected in the table are for 18-year-old drivers on their own policy.

Cheapest Vermont car insurance for teens with an at-fault accident: USAA

A teen driver with an at-fault accident on their record has two things working against them: their age and their imperfect motor vehicle record. It will make finding a cheap deal more of a challenge, but the providers listed below offer affordable average rates, according to Bankrate’s research.

Cheapest Vermont car insurance for young drivers with a DUI: Allstate

Young drivers with a DUI on their record often face significant challenges in securing affordable car insurance, as a DUI generally results in substantially higher rates due to the increased risk profile. It's important to note that the rates discussed here are specifically for a 21-year-old driver with their own policy.

Most car insurance discounts are fairly easy to earn, and you might be able to stack discounts for significant savings. Although the exact selection of available discounts will vary from provider to provider, these are some of the most common:

• Young driver discounts: Young drivers experience high average rates, but they may be able to save with discounts for safe driving, good students and leaving a car at home while away at college.
• Safe driver discounts: Many carriers have telematics programs that may reward drivers for demonstrating safe driving habits. Savings may also be available for remaining accident or claims-free for a set period of time.
• Other discounts: There are dozens of potential discounts out there depending on the provider. You might save by opting for paperless billing, bundling your policies, driving a hybrid or electric vehicle, owning a home and more.

Bankrate utilizes Quadrant Information Services to analyze the latest rates in April 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. Rates include the most recent approved rate increases filed by insurance companies and are weighted based on the population density in each geographic region so that policyholders can see the impact rates have in their areas. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2022 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Teens: Rates were determined by adding a 16-year-old teen to a 40-year-old married parent’s policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy. 

Age: Rates were calculated by evaluating our base profile with the ages 18 and 21 applied. Drivers are renters on their own policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.