Liability Insurance — Vermont
Liability insurance pays for injuries and property damage you cause to others in an accident — it does not cover your own vehicle or medical bills.
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What Is Liability Insurance Insurance?
Liability insurance has two components: bodily injury liability covers medical expenses, lost wages, and legal costs when you injure someone in an accident you cause, while property damage liability pays to repair or replace the other party's vehicle or property. The coverage applies only when you are at fault. Your insurer pays claims up to your policy limits, and you are personally responsible for any amount beyond those limits.
Who Needs Liability Insurance Insurance?
Liability insurance is required for all registered vehicles in Vermont, so every driver must carry at least the state minimum. Drivers who own assets worth protecting — a home, savings, retirement accounts — should carry limits well above the minimum, as you are personally liable for damages exceeding your policy limits. If you finance or lease a vehicle, your lender will require liability coverage as part of the loan agreement.
Start with Vermont's minimum 25/50/10 only if you have limited assets and drive an older car.
How Much Does Liability Insurance Insurance Cost?
- Your location within Vermont — urban areas like Burlington see higher rates than rural counties due to accident frequency.
- Your age and driving experience — drivers under 25 or over 70 pay higher liability rates due to statistical claim patterns.
- Your credit-based insurance score in Vermont — insurers use credit data to price liability risk, and lower scores correlate with higher premiums.
