Best car insurance in Vermont for 2023

Best car insurance companies in Vermont

Vermont drivers pay an average rate of $238 per year for the state-mandated minimum coverage car insurance and $1,061 per year on average for full coverage car insurance, which includes collision and comprehensive coverage.

Bankrate uses a multi-step process to help find you the best auto insurance in Vermont. In addition to analyzing average rate data from Quadrant, we also weigh independent rating agencies, including J.D. Power, AM Best and Moody’s, to approximate carriers’ financial strength and customer satisfaction. We give each company a Bankrate Score, which is generated through careful analysis across the following categories: customer experience, average quoted rates, online resources, mobile app accessibility, financial stability and policy management options. What we determined was that the best car insurance companies in Vermont include Geico, USAA, State Farm, Nationwide and Allstate.

How Bankrate chose the best car insurance companies in Vermont

Bankrate weighs multiple factors in order to determine the best auto insurance companies in Vermont. Average rates are one factor, but are not the only variable. Our insurance editorial team also looks at third-party rankings and ratings for financial health and customer service, along with coverage options, discount opportunities, online tools and other factors, to offer useful insights to Vermont drivers and help them make the most informed decisions for their insurance needs. 

How much is car insurance in Vermont?

Vermont drivers pay an average of $1,061 per year for full coverage car insurance and $238 per year for minimum coverage. This is considerably less than the national average cost of car insurance, which is $2,014 per year for full coverage and $622 per year for minimum coverage. It's also less than what some neighboring states pay. In the nearby state of New Hampshire, for example, the average cost of car insurance is $1,262 per year for full coverage car insurance and $319 per year for minimum coverage. The average driver in the neighboring state of Massachusetts pays $1,262 per year for full coverage and $429 per year for minimum coverage.

The lower average cost of car insurance may be due, in part, to the fact that Vermont is home to just 564,894 licensed drivers and its roads and bridges are in good condition, two factors that help make insurance premiums in the state especially cheap. The state is also largely rural with few congested urban areas where accidents are typically more frequent. That means insurance companies take on less risk overall when insuring Vermont drivers, leading to lower average rates for policyholders in the state.

How to find the best car insurance in Vermont

Finding the best auto insurance in Vermont may take some time and research, but having the right car insurance policy in place can protect you from significant financial losses if you are involved in a costly at-fault accident. If you’re looking for the best car insurance policy as a driver in Vermont, it may be helpful to:

Consider minimum insurance requirements in Vermont

Like most states, Vermont car insurance laws state that drivers must carry a certain amount of liability insurance. The Green Mountain State requires drivers to carry at least 25/50/10 insurance. A 25/50/10 policy covers:

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

Uninsured/underinsured coverage is also mandatory with $50,000 motorist bodily injury per person, $100,000 for bodily injury per crash and $10,000 motorist property damage per crash. The state offers a conditional opt-out policy to help people save.

Consider lender requirements

While minimum coverage insurance is often cheap, some drivers may benefit from higher coverage policies. Full coverage insurance may protect your finances more fully in the event of a collision. If you are leasing or financing a car, typically the company will require you to purchase full coverage insurance to ensure that the car can be repaired or replaced in the event of an accident.

Consider your individual needs

Your own needs are also important to consider when shopping for car insurance policies. It may be helpful to weigh whether it’s important for you to save money, find a company with excellent customer service, a robust suite of digital tools or another factor entirely. By knowing what you need and want from a car insurance company, you may have an easier time narrowing down the options and finding the best fit for you. For example, if you have a teen driver or senior driver on your policy, you may want to focus on companies that offer discounts to these age groups. Or, if you're a safe driver, it may benefit you to consider a company with a telematics program that could help cut down on the costs of your policy. 

Frequently asked questions