Best car insurance in Vermont for 2021
Fatal Car accidents in Vermont increased between 2020 and 2021, with the state having six more incidents than the previous year at the same timeframe. These increasing collisions may convince Green Mountain State drivers to look for the best car insurance in Vermont for their needs. To find the five best car insurance companies in Vermont, Bankrate’s editorial team analyzed and ranked local car insurance carriers across diverse categories. USAA and Geico topped the list, exhibiting the highest customer approval ratings and lowest prices of the insurers on our list.
Thanks in part to the state’s low number of licensed drivers, car insurance in the Green Mountain State is hundreds of dollars cheaper than the national average. The average cost of car insurance in Vermont is $1,207 per year for full coverage and $292 per year for minimum coverage, according to Bankrate’s 2021 study of quoted annual premiums.
Best car insurance companies in Vermont
Bankrate uses a multi-step process to help find you the best auto insurance in Vermont. We reference 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 strength and policy management options. You may want to pay special attention to the Bankrate and J.D. Power scores if you are looking for the best auto insurance in Vermont for customer experience.
|Provider||Bankrate Score||Average annual full coverage premium||J.D. Power customer satisfaction score|
*USAA is not eligible for official ranking with J.D. Power due to eligibility restrictions.
USAA received the highest Bankrate Score and topped the J.D. Power charts for providing excellent service to its customers. However, the company only services active military and veteran members and their families, so you may want to make sure you qualify before exploring coverage options. USAA’s coverage is extensive and has options for key protections like accident forgiveness, roadside assistance and rental car insurance. The carrier offers some of the lowest car insurance rates on the market and consistently receives top ratings for customer satisfaction across the nation.
Learn more: USAA Insurance review
Geico earned the second-highest Bankrate score, offering some of the least expensive rates in Vermont with several discounts to lower rates even more. Good students, good drivers, federal employees, military service members and many more may qualify for one of Geico’s many deals. The company also offers several add-ons, such as Mexico car insurance and coverage for special vehicles like RV insurance, motorcycle insurance, boat insurance and commercial vehicle insurance.
Learn more: Geico Insurance review
State Farm’s high Bankrate Score reflects its above-average customer satisfaction. The company offers robust car insurance policies with the option to bundle homeowners insurance or renters insurance. State Farm also has additional programs to save, such as its Drive Safe & Save, Steer Clear and Good Student Rewards. The company’s local agents are available to help customers and its excellent mobile tools make filing and tracking claims easy and simple.
Learn more: State Farm Insurance review
Bankrate gives Nationwide a 4.3 out of 5-star rating for its diverse coverage options and reputable customer service. Nationwide’s extensive market share gives it the resources to offer varied coverage options like rental car expense coverage, gap insurance and roadside assistance. The company also offers innovative discounts including its SmartMiles program, which allows customers to pay based on distance they drive their vehicle, and SmartRide, a program that monitors a customer’s driving in real-time and awards generous discounts for good driving.
Learn more: Nationwide Insurance review
Customers tend to appreciate Allstate for its wide array of coverage options like sound system insurance, roadside assistance, personal injury protection (PIP) and rental car insurance. Customers may save significantly with exclusive savings programs like the Allstate eSmart discount, EZ pay plan discount, FullPay discount and the safe driving club. Additionally, Allstate’s local agents are available to help you tweak your policy or manage a claim.
Learn more: Allstate Insurance review
Average car insurance cost in Vermont
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. Car insurance in Vermont costs considerably cheaper than car insurance for the average American, making it much cheaper to drive here than in most places. While the average cost of car insurance in the U.S. is $1,674 per year for a full coverage policy, it costs only $1,207 per year for the average cost of car insurance in Vermont.
|Average annual premium for minimum coverage in Vermont||Average annual premium for full coverage in Vermont|
State minimum insurance requirements in Vermont
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 also offers a conditional opt-out policy to help people save.
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. For instance, if you are at fault in a crash and your repayment expenses exceed your policy’s limit, you must pay the rest of the bill out-of-pocket. For this reason, most car insurance experts recommend policies with a higher liability limit to protect you from a financial disaster.
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.
How to get the best car insurance
Choosing the best car insurance in Vermont for your needs is a highly individualized process. To make sure you get the best coverage, you may want to review state laws and evaluate your personal needs.
- Evaluate your needs: To find the best policy for you, you may want to consider how factors such as the car you drive, where you live, your credit score and your accident history might affect your premium. For instance, an extensive accident history might increase your premium, but programs like State Farm’s Drive Safe & Save use telematics to collect data about your driving in real-time so that you could get a competitive rate despite past accidents. Other programs like Nationwide’s SmartMiles allow you to pay based on the average mileage you put on your car. State Farm’s Good Student program gives discounts to students under 25 who earn grades of B and above.
- Consider state factors: The state of Vermont requires that drivers carry a minimum liability insurance per accident of $25,000 bodily injury liability per person, $50,000 bodily injury liability per crash and $10,000 for property damage per crash. However, minimum liability insurance may not be enough for some drivers. Close to 9% of Vermont drivers are uninsured. All told, that means around 50,000 motorists in the Green Mountain State are driving without insurance. This fact may sway some Vermont motorists to purchase more than a minimum liability policy.
Car insurance discounts in Vermont
If you are looking for additional ways to save on the best auto insurance in Vermont, countless local providers deliver competitive discounts. You may qualify for the following deals:
- Low mileage: If you only drive to work a few days a week or live in a town with public transportation, you may qualify for a low-mileage discount. Some companies consider anything below the annual average of 13,476 miles to be a low-mileage driver, while other companies have much stricter requirements. If you are a low-mileage driver, you may qualify for significant discounts that allow you to pay for your insurance based on the amount of time you spend in your car.
- Safety features: Many car insurance providers will offer discounts on insuring vehicles with safety features such as anti-theft protection, daytime running lights, adaptive cruise control and anti-lock brakes. If you own a vehicle with these features, you may want to look into insurance companies that offer this discount.
- Occupational or organizations: Some insurers offer discounts based on your profession or organization. For instance, dozens of companies offer teacher and student discounts.
- Defensive driving course: Insurance companies including Geico, Nationwide, State Farm and USAA offer significant discounts to drivers who take defensive driving courses. The amount you can save through taking a defensive driving course varies.
- Automatic payment/paperless billing: Bills piling up on your desk can be stressful and some insurers actually allow you to save money by opting for paperless billing. Setting up autopay may also save you money and hassle on your insurance policy.
Frequently asked questions
What is the cheapest car insurance in Vermont?
The cheapest car insurance in Vermont depends on what you are looking for. For example, USAA would not be the cheapest car insurance for you if you are not a qualifying military member. Each company also has its own strengths and weaknesses that may not work for you, depending on what you find most important.
What information is needed to get car insurance in Vermont?
To open a new auto policy, you will need to know all of your vehicle information, including the year, make, model and vehicle identification number (VIN). Personal information is required, too, such as your social security number, driver’s license number, bank information and address. Ask your insurance company what it requires.
Does Vermont require car insurance?
Vermont does require its residents to carry a minimum of liability coverage. The exception to this rule requires that a driver submit an SR-22 form and pay a substantial deposit in case of future damage. Drivers may opt out of a car insurance policy if they pay a deposit and complete an SR-22 form that assumes fiscal responsibility for incidents where you were driving, no matter the vehicle.
How can I lower my insurance rate?
There are many ways to lower your premium. Many insurance companies will offer discounted policies if you complete a driver safety and education course. There may also be discounts if you bundle your car and homeowners insurance or have multiple vehicles on your policy. You could also benefit from rewards for paying in full or extending your plan before the end of the term.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 coverages that meet each state’s requirements. Our base profile drivers own a 2019 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.
Bankrate Scores primarily reflect a weighted rank of industry standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (J.D. Power, NAIC), in addition to average quoted rates from Quadrant Information Services. The J.D. Power studies utilized include the 2020 Auto Insurance Study and the 2020 Auto Claims Study. Our Bankrate editorial team’s extensive research and analysis provided a secondary assessment of each insurer’s online and mobile resources and policy management options, which also contributed to overall ratings.