Do You Need Insurance to Register a Car in Vermont in 2025
Vermont law mandates motor vehicle liability insurance for all vehicles operated on public roadways. Under Vermont Statutes Title 23, Chapter 11, vehicle owners must maintain proof of financial responsibility continuously while operating a motor vehicle in the state. The Vermont Department of Motor Vehicles administers vehicle registration and enforces insurance compliance throughout Vermont.
Legal Requirement for Insurance Coverage
Vermont Statutes Title 23, Section 800 establishes that no owner of a motor vehicle required to be registered shall operate or permit the operation of the vehicle upon the highways without having in effect an automobile liability policy or bond. Motor vehicle liability insurance represents the primary method of demonstrating financial responsibility. The requirement applies to all motor vehicles operated on public roads, with limited statutory exceptions.
Vehicle owners must maintain continuous insurance coverage throughout the registration period. Operating a vehicle without established financial responsibility constitutes a violation of Vermont law and may result in suspension of driving privileges, vehicle registration suspension, and fines up to $500. Vermont law enforcement officers may request proof of insurance during traffic stops and accident scenes, and failure to provide proof may result in citations and penalties.
Vermont Department of Motor Vehicles
120 State Street, Montpelier, VT 05603-0001
Phone: (802) 828-2000
Official Website: Vermont Department of Motor Vehicles
Minimum Insurance Coverage Requirements
Vermont Statutes establish minimum coverage amounts for motor vehicle liability insurance. The Vermont Department of Financial Regulation regulates insurance companies operating in the state. Vermont requires drivers to maintain liability insurance coverage that meets or exceeds statutory minimum amounts.
| Coverage Type | Minimum Amount |
|---|---|
| Bodily injury or death of one person | $25,000 |
| Bodily injury or death of two or more persons | $50,000 total |
| Property damage | $10,000 |
The minimum coverage requirements apply to liability insurance only. Vermont law does not mandate collision coverage or comprehensive coverage, though lenders typically require comprehensive and collision coverage for financed vehicles. Vermont also requires uninsured motorist coverage with minimum limits of $50,000 per person and $100,000 total per accident.
Vermont Department of Financial Regulation
89 Main Street, Montpelier, VT 05620-3101
Phone: (802) 828-3301
Official Website: Vermont Department of Financial Regulation
Proof of Insurance Documents
Vermont requires vehicle operators to carry proof of motor vehicle liability insurance at all times while operating a motor vehicle. The following formats are accepted:
- Financial responsibility identification card issued by the insurance company showing policy number, coverage dates, and vehicle information
- Electronic proof of insurance displayed on a mobile device or other portable electronic device
Exceptions to Insurance Requirements
Proof of financial responsibility is required on all motor vehicles operated in Vermont with the following limited exceptions:
- Vehicles owned by the United States government, the state of Vermont, or any political subdivision of the state
- Self-insurers who have filed evidence of self-insurance in the amount of $115,000 with the Commissioner of Motor Vehicles
Insurance Requirements for Vehicle Registration
The Vermont Department of Motor Vehicles processes vehicle registration applications and renewals. Vehicle owners must maintain active insurance coverage when registering a vehicle for the first time in Vermont or when renewing an existing registration.
New Vermont residents must establish Vermont insurance coverage and obtain Vermont vehicle registration within 60 days after moving to Vermont, or before their out-of-state registration expires, whichever occurs first. Out-of-state insurance policies do not satisfy Vermont registration requirements for residents. New residents must obtain Vermont insurance before completing vehicle registration.
Vermont motorists may renew vehicle registration online, by mail, or in person at Department of Motor Vehicles offices. Registration renewals require active insurance coverage. All vehicles must have liability insurance coverage in an amount not less than the statutory minimum.
