Vermont is a tort state for car insurance purposes, and all driver must have third party liability coverage in place to comply with state laws. Bodily injury liability insurance pays for medical bills and related expenses incurred by the occupants of the other vehicle following an accident. It also pays a funeral benefit in the case of a fatal accident. The minimum level of coverage required by law is $25,000 to compensate one accident victim and $50,000 to pay for all injuries sustained in the accident.
Property damage liability coverage is used to pay for repairs to the other driver’s vehicle. It is also used to pay for public property damaged in the accident, including sign posts, mail boxes and guard rails. At least $10,000 in coverage must be bought to comply with state laws.
Along with third party liability protection, drivers in this state must also purchase uninsured motorist coverage. This insurance comes into play when the at-fault driver in an accident is not covered, and the driver’s own policy is used to pay for injuries and damages. The minimum requirements are higher than for third party liability protection: $50,000 to compensate a single accident victim and $100,000 to pay for all injuries and damages stemming from the same accident.
Uninsured motorist property damage coverage of at least $10,000 is also required under Vermont state law. It is used to pay for repairs to the driver’s own vehicle following an accident.