What Uninsured Motorist Coverage Pays When Another Driver Has No Insurance
Uninsured motorist coverage pays your medical bills, lost wages, and vehicle repair costs when another driver causes a crash and carries no insurance. Vermont requires this coverage on every auto policy. You cannot waive it unless you reject it in writing. The coverage applies to every vehicle on your policy, but only up to the limits you select.
Vermont traffic data shows 11.8% of drivers carry no insurance. That rate means roughly one in nine vehicles on the road has no liability coverage to pay your claim after a crash. Uninsured motorist coverage closes that gap. It also covers hit-and-run crashes where the at-fault driver flees before you can exchange information.
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Get Your Free QuoteVermont Uninsured Driver Rate
11.8%
One in nine drivers on Vermont roads carries no liability insurance. When an uninsured driver causes a crash, your uninsured motorist coverage becomes the only source of payment for medical bills and vehicle damage.
Insurance Information Institute, 2023
How Uninsured and Underinsured Motorist Coverage Work Together
Vermont bundles uninsured motorist (UM) and underinsured motorist (UIM) coverage into a single mandatory product. UM pays when the at-fault driver has zero insurance. UIM pays when the at-fault driver carries liability limits below your own UM/UIM limits and those limits are insufficient to cover your damages.
Vermont's minimum liability requirement is $25,000 per person and $50,000 per accident for bodily injury, plus $10,000 for property damage.
The coverage applies per person and per accident. If three people in your household are injured in a single crash caused by an uninsured driver, the per-accident limit caps total payout across all three claims. Selecting limits that match or exceed your liability limits ensures the coverage functions as intended when a multi-vehicle household files multiple claims from the same crash.
UM/UIM limits that fall below your liability limits create a coverage gap: you carry higher limits to protect others, but lower limits to protect yourself when an uninsured driver hits you.
Matching UM Limits Across Every Vehicle on Your Policy
When you add a second or third vehicle to your policy, the carrier applies your existing UM/UIM limits to the new vehicle automatically. You do not select limits per vehicle. This structure protects every household member equally, but it also means a single limit choice governs coverage for every car, every trip, and every potential crash scenario across your household.
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What Uninsured Motorist Property Damage Covers
Uninsured motorist property damage (UMPD) pays for vehicle repair or replacement when an uninsured driver causes a crash. Vermont does not require UMPD as a separate mandatory coverage, but many carriers include it as part of the UM/UIM package or offer it as an optional add-on.
If you carry collision coverage on your vehicle, collision pays for the same damage UMPD would cover, minus your collision deductible. UMPD becomes valuable when you drop collision on an older vehicle but still want protection against uninsured-driver crashes. It also applies to hit-and-run crashes where the at-fault driver cannot be identified, a scenario collision covers but UMPD may cover with a lower deductible.
For households insuring multiple vehicles, UMPD decisions vary by vehicle. You might carry collision on a newer financed car and UMPD on an older paid-off car. The key is ensuring every vehicle has a path to repair payment after an uninsured-driver crash, either through collision or through UMPD.
Vermont Average Annual Auto Premium
$1,168.98
Vermont drivers paid an average of $1,168.98 per insured vehicle in 2023.
NAIC Auto Insurance Database Report, 2023
When Uninsured Motorist Coverage Pays and When It Does Not
UM/UIM coverage pays only when another driver is at fault and that driver is uninsured or underinsured. It does not pay for damage you cause to your own vehicle, damage caused by a driver with adequate insurance, or damage from a single-vehicle crash where no other driver is involved. It also does not pay for vehicle theft, vandalism, weather damage, or animal strikes. Those perils fall under comprehensive coverage.
Hit-and-run crashes qualify as uninsured-driver events. If another driver strikes your vehicle and flees, UM/UIM bodily injury coverage pays your medical bills and UMPD pays vehicle damage, subject to your limits and deductibles. You must report the crash to law enforcement promptly and cooperate with your carrier's investigation. Some carriers require a police report filed within 24 hours; others allow a longer window. Check your policy for the specific reporting requirement.
Compare Carriers That Write Multi-Vehicle Policies in Vermont
Fifteen carriers write auto insurance in Vermont, including State Farm, Geico, Progressive, Allstate, Nationwide, and USAA. UM/UIM limits, UMPD availability, and the cost of raising limits vary by carrier. Some carriers include UMPD automatically; others offer it as an optional endorsement. Some allow you to stack UM/UIM limits across multiple vehicles on the same policy; others prohibit stacking.
When you insure two or more vehicles, compare how each carrier structures UM/UIM coverage for multi-vehicle households. The carrier that offers the lowest liability premium may not offer the best UM/UIM value, and the carrier with the best UM/UIM structure may not be the cheapest overall. Compare the full package across every vehicle you insure.