Consumers in VT need to familiarize themselves with general car insurance information so that they get the right type and level of coverage for their needs. Vermont is a tort state for car insurance purposes, which means people who have been injured in a car accident have the right to sue for damages to pay for the cost of medical bills and lost wages.
All drivers must have bodily injury liability coverage in place to pay for injuries sustained by the occupants of the other vehicle when a car accident occurs. The minimum level of protection is $25,000 to pay for one individual’s injuries and $50,000 to pay for all injuries stemming from the same accident.
Property damage liability coverage must also be put in place to stay legal in the state. The minimum level of protection required by law is $10,000. It is used to pay for the cost of repairs to the other driver’s vehicle and any public property damaged in the accident, such as sign posts, light stands and guard rails.
A driver in VT can also buy coverage to protect his or her own vehicle. Collision coverage pays for the cost of physical damage to the car following an accident. Comprehensive coverage pays out when the loss is due to something other than a collision. It comes into play when the car is damaged by severe weather, stones striking the windshield, an act of vandalism or fire.