STATE LAW – VERMONT LIBRARY – GUIDE 02
Required Auto Insurance, 25/50/10 Liability & Financial Responsibility in Vermont
Vermont requires automobile liability insurance with minimum limits of 25/50/10. This guide addresses compulsory insurance, proof of financial responsibility, minimum liability limits, exceptions, and the practical consequences of minimum limits after a serious crash.
Section 800 sets the driving financial-responsibility requirement
The currently effective text of 23 V.S.A. § 800(a) prohibits an owner or operator within its scope from operating or permitting operation on Vermont highways without a liability policy or bond providing at least $25,000 for one person, $50,000 for two or more persons killed or injured, and $10,000 for property damage in one crash. The section also provides a self-insurance alternative requiring evidence of $115,000 filed with the Commissioner. Read the provision applicable to the vehicle and operator; the online statute separately labels a contingent version of subsection (a).
Proof of responsibility and purchased coverage are different questions
Section 800(c) requires an operator of a vehicle required to be registered to carry proof of financial responsibility while operating on Vermont highways. Proof may be displayed on a portable electronic device; displaying it does not itself consent to access to other contents of the device. An insurance card or proof-of-security document does not establish all policy limits, insured persons, exclusions, or remaining proceeds after other claims. Request the declarations and complete applicable policy.
UM/UIM has a separate statutory framework
Section 941(a) requires qualifying Vermont policies to protect insured persons legally entitled to recover from uninsured, underinsured, or hit-and-run motorists. Subsection (c) states a separate $50,000/$100,000 minimum for its specified policy coverages and generally matches UM limits to bodily-injury liability limits above those figures unless the policyholder directs otherwise. Do not assume the 25/50/10 driving requirement describes the UM/UIM protection. Subsection (f) addresses both lower tortfeasor liability limits and limits reduced by payments to other injured people.
Check property coverage and obtain the insurer’s limits statement
Section 941(a) addresses uninsured/underinsured/hit-and-run property coverage of up to $10,000 per claim with a $150 deductible, subject to special coordination and deductible rules when other direct-damage coverage is collectible. Under subsection (g), an insurer that may be liable under a policy subject to the chapter must, within 30 days after a qualifying written request, identify the insurer and insured and state liability limits. Request that information and review policy dates, other insurance, consent requirements, and applicable historical law before valuing or settling a claim.
Source review: October 15, 2026. This overview addresses the cited coverage provisions. Apply the law and policy version relevant to the crash and policy dates.
PUBLIC-INTEREST LEGAL EDUCATION
VictimsGuide does not provide legal services or create an attorney-client relationship. Verify current primary authority, policy language and applicable law before legal reliance.
Official Vermont sources
- 23 V.S.A. § 800 — financial responsibility
- 23 V.S.A. § 941 — UM/UIM and policy provisions
- 2025 Act 18, § 41
The Legislature’s online code identifies its codification through the 2025 session. Check later enacted laws and the policy’s issue or renewal date when applying these provisions.
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