- Vermont averages around $1,524/year — among the cheapest states in the country for auto insurance
- Low population density, minimal congestion, and low theft rates keep rates structurally low
- Rates rose +14% since 2023 — modest increases compared to most states
- Vermont has limited carrier competition — State Farm and USAA are the primary options for most drivers
- Rural Vermont's wildlife collision risk (deer especially) makes comprehensive coverage worth the modest additional premium
Vermont averages $1,560 per year for full coverage — one of the lowest rates in the country. The state's small, rural population means fewer accidents per mile driven and minimal congestion outside Burlington and a handful of smaller cities. Vermont also has one of the lowest uninsured motorist rates in the country, which removes a significant cost driver that plagues higher-rate states.
Winter driving is the primary risk factor in Vermont — icy roads and snow accumulation contribute to collision claims from November through March. Deer-vehicle collisions are also common in rural areas. But neither risk approaches the scale of hurricane exposure, severe hail, or urban congestion that drives costs in other states.
What Vermont drivers should watch for
Vermont's small market means fewer carrier options than larger states. State Farm, GEICO, Progressive, and USAA (for eligible members) are the major players. Given Vermont's already-low base rates, the carrier spread may be smaller in absolute dollar terms than in other states — but shopping at renewal is still worthwhile. Drivers with clean records can often find rates well below even the state average.
Vermont average: $1,560/year full coverage. National average: ~$2,500. Vermont drivers pay roughly 38% below the national average. Winter tires and comprehensive coverage are worth carrying given snow and deer collision risk.
Frequently asked questions
What is the cheapest car insurance in Vermont?
Vermont consistently ranks among the cheapest states for auto insurance. GEICO and State Farm are the most competitive national carriers. USAA is best for military and veterans. Vermont's small size, low traffic, and rural character all contribute to below-average rates. Enter your ZIP to compare current rankings.
What are Vermont's minimum auto insurance requirements?
Vermont requires 25/50/10 liability coverage — $25,000 per person / $50,000 per accident bodily injury and $10,000 property damage. Uninsured motorist coverage at 50/100 is required. Vermont is a tort state with no mandatory PIP. Vermont's requirements are modest, but the state's low accident rates mean coverage is rarely tested.
Why is Vermont one of the cheapest states for auto insurance?
Vermont has the second-smallest population of any US state, very low traffic density, rural roads, and extremely low vehicle theft rates. The combination of low claims frequency and a competitive (if thin) carrier market keeps premiums well below the national average. Burlington is the only significant urban center and remains a small city by national standards.
What should I know about winter driving and comprehensive coverage in Vermont?
Vermont winters are serious — heavy snow, ice, and deer activity (particularly in fall) make comprehensive coverage worthwhile even on modest-value vehicles. Deer-vehicle collisions are covered under comprehensive, not collision. Given Vermont's low base rates, the cost of adding comprehensive is low relative to the risk of a deer strike or storm damage claim.