Car insurance in Vermont (25/50/10)
- Minimum car insuranceVermont requires at least $25,000 per person and $50,000 per crash for bodily injury and $10,000 for property damage. Uninsured/underinsured motorist coverage is required at higher limits of at least $50,000 per person and $100,000 per crash, plus $10,000 for property damage; PIP is not required. Source
- Fault systemVermont is an at-fault (tort) state: the driver who causes a crash, through their liability insurance, pays for the other party's injuries and damage. Source
Business insurance rules in Vermont
- Workers’ compensationVermont employers must carry workers' compensation as soon as they hire one employee, full- or part-time, unless the Department of Labor approves them to self-insure. Sole proprietors and partners of unincorporated businesses are among the few exceptions. Source
- Contractor licensingSince April 1, 2023, residential contractors doing work worth $10,000 or more (labor and materials) must register with the Office of Professional Regulation. Registration requires liability insurance of at least $1,000,000 per occurrence and $2,000,000 aggregate, plus an attestation that the contractor uses written contracts. Source
Home insurance in Vermont
- Home insurer of last resortVermont has no standing FAIR plan; state law authorizes the Commissioner to activate a joint underwriting association only if the voluntary market fails and a market assistance plan cannot restore coverage. Source
Disasters, floods, hail, tornadoes and earthquakes in Vermont
| Measure | Vermont | Rank among the states | Detail |
|---|---|---|---|
| Federal major disaster declarations since 2000 | 37 | #19 of 51 | Most often for severe storm (25), flood (9), severe ice storm (2). Lamoille County has been in 22 of them. |
| National Flood Insurance Program claims, 2005–2025 | 2,797 | #30 of 51 | $111.9 million paid; 21% of claims with a known flood zone were outside FEMA’s high-risk zones. |
| Hail reports, 2016–2025 | 92 | #44 of 51 | 0 of them 2 inches or larger. Largest stone 1.75 inches, Caledonia County, July 2016. |
| Tornadoes, 2016–2025 | 5 | #48 of 51 | 0 rated EF2 or stronger; 50 recorded since 1950. |
| Earthquakes of magnitude 4.0+, 2000–2025 | 0 | — | None of magnitude 4.0 or greater recorded in or near the state. |
From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.
Look up the storm history of any county in Vermont.
The property risks that matter in Vermont
The July 2023 floods in Montpelier and across Vermont caused major damage to homes and businesses without flood insurance.
Standard homeowners and renters policies exclude flood. In Vermont, flood coverage comes from the National Flood Insurance Program (NFIP) or a private flood insurer, and NFIP policies generally carry a 30-day waiting period, so buy before storm season. Check your address on FEMA's Flood Map Service Center.
Winter storms drive many Vermont claims: frozen and burst pipes, ice dams and roof collapse from snow load. Sudden pipe bursts are usually covered, but losses from failing to maintain heat in a vacant home may not be. Water backup coverage is a separate endorsement.
Worth knowing in Vermont
Vermont requires uninsured/underinsured motorist limits (50/100) that are higher than its own liability minimums (25/50).
Before your next Vermont renewal
- Compare your auto liability limits with the Vermont minimum of 25/50/10 and with your actual assets.
- Check your address on FEMA's Flood Map Service Center and price an NFIP or private flood policy before storm season (NFIP usually has a 30-day wait).
- Add water backup coverage and keep heat on when the home is empty.
- Condo owners: compare your HO-6 loss assessment limit with the HOA master deductible.
Vermont’s insurance regulator
Insurance in Vermont is regulated by the Vermont Department of Financial Regulation, Insurance Division, which handles consumer complaints and licenses insurers and agents.
Sam Alishahi holds a Vermont nonresident insurance producer license (#3004487752, NPN 21022298) and places Vermont policies directly.
Common questions
What is the minimum car insurance in Vermont?
Vermont requires at least $25,000 per person and $50,000 per crash for bodily injury and $10,000 for property damage. Uninsured/underinsured motorist coverage is required at higher limits of at least $50,000 per person and $100,000 per crash, plus $10,000 for property damage; PIP is not required.
Is Vermont a no-fault state?
Vermont is an at-fault (tort) state: the driver who causes a crash, through their liability insurance, pays for the other party's injuries and damage.
Do employers in Vermont need workers’ comp?
Vermont employers must carry workers' compensation as soon as they hire one employee, full- or part-time, unless the Department of Labor approves them to self-insure. Sole proprietors and partners of unincorporated businesses are among the few exceptions.
What can a Vermont homeowner do if no insurer will write the house?
Vermont has no standing FAIR plan; state law authorizes the Commissioner to activate a joint underwriting association only if the voluntary market fails and a market assistance plan cannot restore coverage.
Do I need flood insurance in Vermont?
If you're in a high-risk flood zone with a federally backed mortgage, your lender will require it. Elsewhere it's optional but worth pricing, because homeowners policies exclude flood.
Are frozen pipes covered in Vermont?
Sudden bursts are usually covered, but damage caused by failing to maintain heat in a vacant home may be excluded.
More answers: Vermont homeowners insurance guide Vermont renters insurance and security deposit guide Vermont life insurance consumer guide Vermont flood risk and NFIP guide
Sources
- Vermont: Minimum car insurance
- Vermont: Fault system
- Vermont: Workers’ compensation
- Vermont: Home insurer of last resort
- Vermont: Contractor licensing
- Vermont: insurance regulator
- NAIC: directory of state insurance departments
General information as of October 2026, not legal advice; confirm current rules with the agency.