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Vermont driving lesson · Your Vehicle: Equipment, Insurance & Ownership

Insurance requirements

A 3-minute lesson from the Vermont course. Read the rules and examples, follow the handbook page references, and check your understanding before you move on.

Read time
3 minutes
Course unit
Your Vehicle: Equipment, Insurance & Ownership
Checkpoint questions
6
Source pages
15, 17, 68, 69

In Vermont, the vehicle you drive must be covered by liability insurance. It protects you from financial loss when someone is hurt or property is damaged. You must carry proof, and driving uninsured can cost you your license for a long time.

Maintenance of Financial Responsibility

Vermont's law requiring that the vehicle you drive be covered by liability insurance.

Handbook p. 68 ↗

Know the rule

Liability and property damage are the most important types of auto insurance. They protect you against financial loss when bodily injury or property damage occurs.

Handbook p. 68 ↗

Minimum liability coverage

Minimum liability coverage
CoversAt least
Death or injury of one person$25,000
Death or injury of 2 or more persons$50,000
Property damage$10,000
Handbook p. 68 ↗

Know the rule

Carry the card from your insurance company in the vehicle. You must show it if a police officer stops you and when you take a driving test.

Handbook p. 68 ↗

The insurance card must state:

  • The name of the insurance carrier
  • The effective and expiration dates of coverage
  • The name of the insured
  • A description of the vehicle, including the VIN
Handbook p. 15 ↗

Know the rule

If an officer asks for proof and you have no insurance, you get a ticket, a fine and two points on your driving record.

Handbook p. 68 ↗
15 days

If you're insured but can't show the card when stopped, you have 15 days to show one proving you were insured at the time

Handbook p. 68 ↗

Uninsured drivers lose their license until insured if they:

  • Are in a crash, even if it isn't their fault
  • Drive under the influence of alcohol or drugs
  • Drive or take another person's vehicle without the owner's consent
  • Drive while their license is suspended, revoked or refused
  • Drive in a way that causes another person's death
  • Leave the scene of a crash
Handbook p. 69 ↗
3 years

After losing your license while uninsured, you must prove to the Commissioner that you have insurance for a full 3 years

Handbook p. 69 ↗

Know the rule

For a road test you must show proof of current, valid insurance for the vehicle. Without it you can't be tested.

Handbook p. 17 ↗

Put it into practice

An officer stops you and your insurance card is in your other car. You do have coverage. You have 15 days to show a card proving you were insured at the time of the stop. If you had no insurance at all, you'd get a ticket, a fine and 2 points.

Check your understanding

Read the question, decide on an answer, then open it to check the explanation. These are Roadwise study questions based on the source handbook.

What is the minimum required liability coverage for the death or injury of one person in Vermont?
  1. $10,000
  2. $50,000
  3. $15,000
  4. $25,000

Answer: $25,000

Vermont requires at least $25,000 in coverage for the death or injury of one person.

Handbook p. 68 ↗
What is the minimum required liability coverage for the death or injury of two or more people?
  1. $50,000
  2. $25,000
  3. $75,000
  4. $100,000

Answer: $50,000

Vermont requires at least $50,000 in coverage when two or more people are killed or injured.

Handbook p. 68 ↗
What is the minimum required liability coverage for property damage?
  1. $5,000
  2. $10,000
  3. $25,000
  4. $50,000

Answer: $10,000

Vermont requires at least $10,000 in liability coverage for property damage.

Handbook p. 68 ↗
You're stopped by police and don't have your insurance card on you, but you do have coverage. What can you do?
  1. Nothing; your license is automatically suspended
  2. You have only 24 hours to show proof
  3. Show proof within 15 days that you were covered at the time
  4. You must get a new policy immediately

Answer: Show proof within 15 days that you were covered at the time

If you can't show the card, you have 15 days to prove you had insurance at the time you were stopped.

Handbook p. 68 ↗
You're in a crash while driving without insurance, even if it wasn't your fault. What happens to your license?
  1. Nothing changes if the crash wasn't your fault
  2. You get a warning only for a first crash
  3. You lose it for exactly ninety days
  4. It's taken away until you prove insurance for a full 3 years

Answer: It's taken away until you prove insurance for a full 3 years

Driving uninsured and being in a crash, even one that isn't your fault, means losing your license until you prove insurance for 3 years.

Handbook p. 69 ↗
A driver's insurance lapsed, and they were later found driving another person's car without consent. What happens to their license?
  1. It is taken away until 3 years of proven insurance
  2. Nothing beyond a standard traffic ticket
  3. Just a 30-day suspension
  4. License is taken away for exactly 6 months

Answer: It is taken away until 3 years of proven insurance

Driving another's vehicle without consent while uninsured is one trigger for the 3-year insurance-proof rule.

Handbook p. 69 ↗
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