What is the penalty for driving without insurance in Vermont?

Driving without car insurance in VT in punishable for fines of $500 or more and at least three years of SR-22 requirements. High-risk drivers pay $137.75/mo more for coverage.

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Jul 22, 2021

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Here's what you need to know...

  • Buying auto insurance is not optional in Vermont
  • First and second offenses for driving uninsured result in a $100 failure to provide proof of insurance, an additional $500 fine, and a three-year mandated SR-22 insurance
  • Reviewing online quotes helps with purchasing the very best insurance at a reasonable rate

Vermont does not maintain as high of a population as other states and this has an effect on the roads. A smaller local population means fewer drivers, which reduces congestion and emissions.

New residents to Vermont should not assume that fewer cars on the road automatically decreases the chances for an accident. Vermont’s roads do come with risks.

The state police even noted the summer season, in particular, actually leads to an increase in dangerous drivers and accidents.

Residents of Vermont should take heed of accident stats. Let the stats be a reminder as to why auto insurance is so important. Paying insurance premiums in full remains a good plan since this eliminates a loss in coverage due to nonpayment.

A policy will be canceled for nonpayment leading to a lapse — period of no coverage — until a payment on a new policy is made.

Driving without insurance for any reason would not be a good idea for Vermont residents. Anyone who causes an accident and carries no insurance could lose everything in a civil suit.

Even in minor accidents, liability and collision insurance settlements would reduce otherwise costly expenses. Adding comprehensive insurance protects against vandalism, theft, natural disasters, and more.

Purchasing auto insurance requires little effort since quotes can be acquired online with minimal effort. Just enter your zip code into our free rate tool above to get started!

And after purchasing a policy, a driver complies with Vermont state law.

Penalties for Driving Without Car Insurance

Auto insurance is not optional in Vermont. Those who are pulled over for a moving violation and can provide no proof of insurance find themselves in further trouble. Trouble comes in the form of the following sanctions against the driver:

First Offense

Driving without proof of insurance yields a $100 penalty in Vermont. Subsequently, the driver must provide proof of insurance to the traffic court within 20 days or else face a license suspension.

Failure to carry insurance also means an additional fine of not more than $500. The initial $100 fine for failure to carry proof won’t be rescinded as would be the case in other states if proof is presented to the traffic court.

Regarding reinstatement after suspension, proof of insurance must come in the form of an SR-22 proof of financial responsibility certificate from an insurance company.

The insurance company files the certificate directly with the Vermont Department of Motor Vehicles and must do so for three straight years. Unless the DMV receives the SR-22, driving privileges remain suspended.

Driving without insurance also leads to accumulating two points on a driving record. These points would be in addition to other points resulting from the initial traffic stop.

So, a driver could be cited for speeding and no insurance and receive points for both infractions. Amassing too many points can lead to driving privileges being suspended.

Second Offense

A second offense leads to a $100 fine for failure to provide proof of insurance and an up to $500 fine for driving with no insurance. A three-year requirement for filing an SR-22 with the DMV is imposed.

An additional two points would be added to a driving record further increasing the chances for a suspension.

When comparing the first and second offense penalties, it becomes clear Vermont does not increase sanctions for a subsequent offense as is done in various other jurisdictions.

Drivers should not assume this means the consequences for driving without insurance are negligible. Insurance rates surely increase when cited for driving without insurance. And once again, driving without insurance puts you at great financial risk after causing an accident.

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What proof of insurance is accepted in Vermont?

Electronic proof of insurance is acceptable in the state of Vermont. This means a digital image of proof can be displayed on a smartphone, tablet, or another mobile device. Still, it would be prudent to keep a paper document in the vehicle.

If the mobile device fails, at least a paper copy exists. Drivers can request a paper document from their insurance provider.

How to Get Car Insurance in Vermont

Purchasing insurance in Vermont has become very easy thanks to the availability of online quotes. After receiving a decent number of online quotes, examine each one for the best coverage options. Be aware that Vermont maintains the following minimum insurance requirements:

  • $25,000 to cover bodily injury or death.
  • $50,000 to cover bodily injury or death per accident.
  • $10,000 to cover property damage.

With such small amounts of minimum coverage, drivers should acquire much more auto liability coverage in order to best protect their assets.

Also advisable is to look into other coverage options such as uninsured/underinsured motorist.

The state of Vermont mandates insurance providers must offer the following minimum amounts of optional uninsured/underinsured motorist coverage:

  • $50,000 to cover bodily injury or death.
  • $100,000 to cover bodily injury or death per accident.
  • $10,000 to cover property damage.

Please note $10,000 in property damage coverage is the maximum amount a customer can buy. Property damage claims are subject to a $150 deductible. Bodily injury and death amounts can be increased.

Reviewing a variety of insurance quotes helps with getting the best insurance in place. The right auto insurance policy could eliminate a host of financial problems after a collision or other incident.

With easy access to online quotes, finding the best policy is fast and easy. Enter your zip code below to get started.

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Enter your ZIP code below to view companies that have cheap car insurance rates.

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