The Cheapest Auto Insurance in Vermont in 2024

The Green Mountain State is the cheapest state for car insurance in the U.S. State Farm offers the cheapest average rate, at $43 per month, but average liability rates are lowest with Union Mutual, at $16 per month.

In order to legally drive in Vermont, you’ll need at least $25,000/$50,000 of bodily injury protection and $10,000 of property damage liability, plus uninsured and underinsured motorist protection (two out of every 25 Vermont drivers are uninsured, according to the Insurance Research Council).

Let’s take a look at how rates vary for different driver profiles in Vermont, as well as a few of the best ways to get cheaper car insurance in the Green Mountain State.

Key Takeaways:

• State Farm is the cheapest Vermont insurer overall, but Union Mutual is cheaper for liability-only policies for drivers with a wide variety of backgrounds.
• GEICO, Concord Group Insurance, and Vermont Mutual are also good choices for cheap policies.
• Patriot Insurance is a cost-effective option for drivers with tickets or accidents on their records.

Vermont’s Cheapest Car Insurance Companies

Even though average rates are $65 per month, Vermont drivers have several ways to save. With that in mind, let’s explore which companies provide the cheapest car insurance options in Vermont overall, based on data from Compare.com.

Monthly rates among the five cheapest are within $12 of each other, with just a $2 difference between State Farm and Union Mutual. With rates so close, it’s impossible to tell which company will most likely give you the best rate. Your best bet is to compare quotes from as many companies as possible before buying your next policy.

In the sections below, we’ll cover how different factors affect rates, including coverage level, age, and driving record.

Compare.com’s Best Vermont Insurance Companies of 2024

While there’s no across-the-board best insurance company, some outpace the rest. So many factors influence car insurance rates, and there is a virtually unlimited set of options on the market. Not to mention, everyone has a unique set of needs and preferences, which can make finding the best policy for you even more difficult.

But the companies included in this list are a great starting point. They were chosen for a combination of reasons, including coverage options, available discounts, customer satisfaction scores, and average rates.

Union Mutual: Best for Vermonters on a budget

Average quote: $45 per month

Compare.com rating: Not rated

Trustpilot rating: No reviews

BBB rating: A+

Pros:

• Opportunities for dividends
• Good discount options and deductible credits
• No customer complaints with NAIC

Cons:

• Limited technological features
• Limited hours of operation
• Gap insurance not available

Union Mutual is a regional insurer founded and headquartered in Montpelier. As a mutual insurance company, it’s owned by its policyholders, who also get the chance to earn dividends (share of profits). And that’s on top of already rock-bottom rates.

The company uses a local agent model, and you must get a quote through your local agent — no online quoting is available. Though few customers have written reviews of Union Mutual, the company appears to have solid customer satisfaction.

State Farm: Best for Vermont drivers with a DUI

Average quote: $43 per month

Compare.com rating: 4.3 out of 5

Trustpilot rating: 2.9 out of 5

BBB rating: A-

Pros:

• Higher-than-average customer satisfaction scores
• Strong coverage and discount options available
• User-friendly technology

Cons:

• Higher-than-average number of customer complaints
• Low customer ratings on independent review sites
• Gap insurance not available

Known for its cheap rates and great discounts to drivers with clean records, State Farm offers especially affordable rates to Vermont drivers with a DUI. These drivers can also take advantage of State Farm’s many discounts, including a valuable bundling discount for purchasing an auto policy alongside a homeowners, condo, renters, or life policy.

But State Farm has some issues with service, given the higher-than-average customer complaints, so be sure to read reviews for agents in your local office.

Patriot Insurance Company: Best for Teen Policies

Average teen quote: $132 per month

Compare.com rating: Not rated

Trustpilot rating: Not rated

BBB rating: A+

Pros:

• Fewer than average complaints
• Local independent agents
• 24/7 claims reporting

Cons:

• Fewer than average available discounts
• Rideshare coverage not available
• Online quotes not available

Patriot Insurance offers a great deal for Vermont teens, especially for liability policies. But the company also offers low rates for full coverage, plus many coverage options, including accidental death benefits. Customers tend to enjoy the service at Patriot, and the company boasts a complaint rating that’s 37% lower than the national average.

Patriot is also a great choice if you enjoy personalized service from people who love their jobs (the company earns 4.3 out of 5 stars on Glassdoor).

The Average Cost of Vermont Car Insurance

The average Vermont auto insurance premium is $65 per month — far cheaper than both its neighbors and the national average, as illustrated in the table below.

Vermont’s average rates are nearly half those of Massachusetts and national average, and they’re more than 4.5 times cheaper than average premiums in New York.

Rates are cheap in Vermont because insurers incur the country’s smallest non-commercial auto insurance losses, according to the Insurance Information Institute (Triple-I). Where risk is low, so are premiums.

Cheapest State-Minimum Car Insurance in Vermont: Union Mutual

State-minimum car insurance is the cheapest and least amount of insurance coverage you can buy to legally drive in Vermont. The table below features the five cheapest companies for state-minimum liability coverage in Vermont.

Union Mutual offers monthly rates $6 cheaper than the next cheapest option, Patriot Insurance — a potential savings of $72 per year. But rates are close across the board, so it’ll be important to compare quotes from several companies to find the best deal.

Cheapest Full-Coverage Car Insurance in Vermont: State Farm

Full-coverage policies include liability insurance plus collision and comprehensive coverages that pay for damage to your own vehicle after an accident. This added protection makes these policies more expensive, so let’s look at Vermont’s cheapest options for full coverage.

State Farm is $12 less per month than the next cheapest option, GEICO ($144 annual savings). State Farm is the biggest insurer in the country, which helps keep rates low. But don’t be surprised if another insurer offers you a better premium — rates are still competitive across the companies shown here.

Compare Vermont Auto Insurance Rates by Age

Age significantly influences car insurance rates, with younger drivers often facing higher premiums, since inexperienced drivers are statistically more prone to accidents. But as drivers age and gain experience, insurance rates decrease, reflecting a lower likelihood of accidents (drivers in their 60s are statistically the safest drivers). But, once you reach your 70s, the chances of an accident rise, and so do average rates.

Let’s see exactly how rates change based on your age in Vermont.

Cheapest car insurance for Vermont teens: Patriot

Teen drivers are about three times more likely to be involved in a fatal car accident, according to the Centers for Disease Control and Prevention (CDC). Inexperience plus higher rates of distracted driving and speeding contributes to higher accident rates, which increase premiums.

Still, you can find a deal if you know where to look. The following table shows Vermont’s five most affordable companies for 18-year-old drivers, sorted by liability rates.

Patriot Insurance’s liability rates are 15% cheaper than the next cheapest option, while State Farm’s full-coverage rates are the cheapest by 4%. Liability-only coverage provides significant savings, so consider having your teen drive an older vehicle.

Luckily, rates decrease as you age, dropping significantly by age 25.

Now let’s take a look at another group whose average rates are heavily affected by age — seniors.

Cheapest car insurance for Vermont seniors: Union Mutual

Seniors typically get the cheapest car insurance rates because they make fewer insurance claims than other age groups. And low claims mean low premiums.

How low do they go? Let’s explore the cheapest car insurance companies for senior drivers in Vermont.

All of the companies here feature monthly liability costs that are within $9 of each other, but Union Mutual has the cheapest average rate, at just $17 per month.

State Farm offers full-coverage policies 13% less than the next cheapest option, GEICO — a savings of just under $100 annually. With rates fairly close together, seniors should compare options and consider policy perks important to them, such as roadside assistance, senior discounts, and concierge service.

Compare Vermont Auto Insurance Rates by Driving Record

Your driving record is a primary factor in determining your auto insurance rates — insurers meticulously evaluate your recent history to determine your risk level. Responsible driving usually results in lower premiums, while a record with incidents can substantially raise costs due to higher risk. For example, drivers with a history of accidents or DUIs are more likely to be involved in a future accident.

Let’s review how Vermont insurers treat rates based on your driving history.

Cheapest car insurance for good drivers in Vermont: Union Mutual

Drivers with a clean record — no accidents or tickets within the last three to five years — get the best rates. Below are the cheapest auto insurers for Vermont drivers with a clean record, according to Compare.com data.

Union Mutual offers liability rates 27% cheaper than the next cheapest insurer, while State Farm’s full-coverage rates are the most affordable by 17% — a potential annual savings of $72 and $144, respectively. But the great news here is that rates are close, especially for liability policies, so good drivers should have a lot of options for cheap coverage.

But let’s see what happens to rates when a driver has a speeding ticket.

Cheapest car insurance in Vermont after a ticket: Union Mutual

Rates tend to rise even after one speeding ticket — the average driver sees their rates increase by 37%, according to Compare.com data. So, let’s examine which companies offer the most cost-effective car insurance options for drivers with a single speeding ticket in Vermont.

Interestingly, Union Mutual doesn’t appear to penalize drivers for a single speeding ticket — either for liability policies, where it’s the cheapest option by 33%, or for full coverage. The rest of the companies shown here charge a modest increase for liability insurance and steeper increases for full coverage, with State Farm offering the cheapest full-coverage option (14% cheaper than the next closest competitor).

Next, we’ll compare rates for drivers with an at-fault accident.

Cheapest car insurance in Vermont after an accident: Union Mutual

Rates tend to go up by an average of 44% after an at-fault accident, based on data from Compare.com. But several Vermont insurers still offer low rates.

Here are the most budget-friendly companies for drivers with a single at-fault accident.

Union Mutual’s monthly liability rates are just $3 cheaper than Patriot Insurance, and both these companies offer an average annual savings between $96 and $240 compared to the rest of the companies shown here. State Farm offers full-coverage policies at nearly 30% less than the next cheapest option, earning policyholders an average savings of $324 per year.

But how do these rates compare with rates after a DUI? Let’s take a look.

Cheapest car insurance in Vermont with a DUI: State Farm

DUIs typically cause the greatest negative effect on car insurance prices, with an average increase of 94%, according to Compare.com data. But that doesn’t mean you’re stuck. Some companies specialize in insuring high-risk drivers, so you can still find a good deal if you know where to look.

The table below features the cheapest companies for Vermont drivers with one DUI.

State Farm is the cheapest Vermont insurer for both liability (26% less) and full coverage (30% less), with rates matching those of drivers with a speeding ticket. Union Mutual surprisingly didn’t make the list, and the company doesn’t file SR-22s for high-risk drivers, either.

After a DUI in Vermont, you should expect the following penalties:

• Up to a $750 fine, plus court fees
• Up to two years imprisonment
• 90-day license suspension
• $71 license-reinstatement fee
• Mandatory counseling program
• Three-year SR-22 filing requirement

Subsequent DUIs within a 15-year period come with even harsher penalties.

5 Ways to Get Cheap Car Insurance in Vermont

Even when prices are cheap to begin with, there are still many ways to save money on car insurance. Here are some tried and true methods.

1. Maintain a clean driving record: Even if you don’t have a clean record, avoiding tickets and accidents going forward is still the best way to ensure rates drop and stay low.
2. Try usage-based insurance: Pay per mile if you’re a low-mileage driver, or try a telematics program that discounts rates for practicing safe driving habits.
3. Combine discounts: Getting a high-value discount — like one for bundling your policies — is great, but combining all your eligible discounts is even better.
4. Raise your deductibles: Consider raising deductibles on applicable coverages in your car insurance policy — such as comprehensive and collision coverage — to reduce your insurer’s risk and your premium.
5. Compare car insurance quotes: Gather quotes from several insurers — the more, the better — to ensure you have the lowest rate. Compare every six months and never miss a chance to save.

“It’s recommended that you shop insurance with a variety of carriers for the best rate,” says Nick Schrader, licensed agent with Texas General Insurance. “[You] should also review potential discounts, such as low mileage, professional credits, and driver training for additional savings.”

Vermont Auto Insurance Requirements

The Vermont Department of Motor Vehicles requires Vermont drivers to maintain at least the following minimum coverages.

• $25,000 of bodily injury liability per person
• $50,000 of bodily injury liability per accident
• $10,000 of property damage liability
• $50,000 of uninsured/underinsured bodily injury coverage per person
• $100,000 of uninsured/underinsured bodily injury coverage per accident
• $10,000 of uninsured/underinsured property damage coverage

But remember that state minimums may not be enough to financially protect you. You’ll likely need collision and comprehensive coverage if your car is leased, financed, or worth more than $5,000. And consider also adding umbrella insurance to cover gaps in insurance policies.

Penalties for driving without auto insurance in Vermont

If you’re caught driving without insurance in Vermont, you’ll face the following penalties for first and subsequent offenses.

• Up to a $500 fine
• License suspension until you provide proof of insurance
• $82 reinstatement fee
• Possible SR-22 filing requirements for three years

Additionally, failing to carry proof of insurance comes with a $100 fine, but you’re allowed to show proof using your cellphone.

SR-22 auto insurance in Vermont

An SR-22 is a certificate proving financial responsibility after a violation, such as driving without insurance, a DUI, or other serious offenses. It’s not insurance but assures compliance with state requirements.

Here are a few tips to keep costs low if you have to file an SR-22.

• Pay on time to avoid fees or issues with the DMV.
• If you can’t find an insurer willing to issue a policy, seek one through the state insurance program.
• Compare rates often to discover lower rates as soon as possible.

Vermont Auto Insurance FAQs

It’s normal to have questions about car insurance, even lots of them. Here are the answers to the most common questions about getting car insurance in Vermont.

What is the cheapest car insurance in Vermont?

State Farm offers the cheapest average auto insurance rate, at just $43 per month.

However, Union Mutual, GEICO, Concord Group Insurance, and Vermont Mutual offer rates within a few dollars. And the cheapest options in general may not be the cheapest option for you, so always compare rates before you buy.

How much is car insurance per month in Vermont?

The average monthly cost of car insurance is $65 in Vermont. However, your cost will depend on your location, age, driving record, and several other factors. That means you could pay less or more than the average car insurance rate.

Why is car insurance cheaper in Vermont?

Vermont is the cheapest state for car insurance due to its low population density and traffic congestion. Further, Vermont incurs the smallest amount of losses related to private passenger auto insurance compared to all other states, according to Triple-I. That means insurers face less risk in the state.

What is the minimum auto insurance in Vermont?

Drivers must purchase $25,000 of bodily injury protection for one person and $50,000 per accident, plus $10,000 of property damage liability coverage. You must also have uninsured and underinsured motorist protection of $50,000 in bodily injury coverage for one person, $100,000 per accident, and $10,000 in property damage coverage.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. J.D. Power, “2023 U.S. Auto Insurance Study,” Accessed November 17, 2023.
2. Center for Disease Control and Prevention, “Teen Drivers and Passengers: Get the Facts,” Accessed November 16, 2023.
3. Journal of Traffic and Transportation Engineering, “Estimating likelihood of future crashes for crash-prone drivers,” Accessed November 16, 2023.
4. National Highway Traffic Safety Administration, “Drunk Driving,” Accessed November 16, 2023.
5. Vermont General Assembly, “Title 23: Motor Vehicles Chapter 013,” Accessed November 17, 2023.
6. Vermont General Assembly, “Title 23: Motor Vehicles Chapter 011,” Accessed November 16, 2023.
7. Insurance Information Institute, “Facts + Statistics: Uninsured motorists,” Accessed November 18, 2023.
8. Insurance Information Institute, “A Firm Foundation: How Insurance Supports the Economy,” Accessed November 16, 2023.