Top Car Insurance Companies in Vermont: 5 Best Picks

Money provides an expertly curated selection of the best car insurance options in Vermont, each offering impressive coverage that is evaluated in conjunction with our national rankings of top car insurance providers. This specific list focuses on Vermont and incorporates data pertinent to the Green Mountain State as well as the broader New England region.

This article also presents essential information about the mandatory car insurance requirements in Vermont, along with insightful statistics concerning the state’s drivers, particularly focusing on the alarming percentage of uninsured drivers operating on Vermont’s roads.

Essential Insights on Car Insurance in Vermont

• Vermont is recognized as one of the most budget-friendly states in the U.S. for car insurance. Contributing factors to this affordability include the state’s low crime rates and sparse population density, which help reduce the likelihood of accidents on less congested roads.
• While Vermont’s legal insurance requirements are relatively minimal, many drivers opt for higher coverage limits to enhance their protection in serious accidents.
• In contrast to numerous states where uninsured/underinsured motorist (UM/UIM) coverage is optional, Vermont mandates this essential protection for all drivers.
• Drivers in Vermont with specific violations, such as DUIs, are required to file an SR-22 certificate to demonstrate they maintain the necessary liability coverage, which must be upheld for a period of three years.

Criteria for Selecting the Best Car Insurance in Vermont

Money’s selections for the top car insurance in Vermont are grounded in comprehensive evaluations, including our national rankings of leading auto insurance providers. We also factor in how well these companies performed in the 2024 J.D. Power U.S. Auto Insurance Study, which assesses customer satisfaction across New England, as well as complaints data from the National Association of Insurance Commissioners (NAIC). For a detailed explanation of our selection methodology, please refer to the section below.

Leading Choices for Car Insurance in Vermont

Allstate
Amica
GEICO
Nationwide
State Farm

Comprehensive Reviews of the Best Car Insurance in Vermont

These insurance providers are recognized as top-tier options for auto insurance policies in Vermont, evaluated based on their competitive rates, customer satisfaction levels, and the diversity of coverage options available. Most or all of the leading car insurance companies in Vermont offer incentives for safe drivers to reduce their premiums, discounts for bundling multiple insurance policies, and adaptable coverage options designed to help drivers save costs. (Refer to the methodology section below for further insights.)

Listed in alphabetical order:

Allstate achieved a score slightly above average in the 2024 J.D. Power U.S. Auto Insurance Study for New England. Its complaints record with the NAIC is also commendable, with fewer complaints than expected for its size.

Allstate provides a diminishing deductible program that rewards customers with a $100 discount on collision coverage for each year they remain claim-free, reaching up to a maximum savings of $500. This generous program is designed to incentivize safe driving.

Additionally, Allstate offers significant discounts of up to 25% when bundling both auto insurance and homeowners insurance. However, it’s important to note that Allstate’s car insurance premiums can often be higher than those of competitors, so it’s wise to conduct thorough research before assuming that a bundled policy will automatically be cheaper.

Other benefits include a substantial discount of up to 40% if Allstate’s Drivewise telematics program identifies you as a safe driver. However, a notable downside is that, unlike some competitors’ telematics offerings, your rates may increase if Drivewise detects risky driving behaviors. Allstate also provides a Milewise pay-as-you-go policy option, allowing you to pay a daily fee plus a per-mile charge on the days you drive.

Amica is celebrated for its exceptional customer service. Excluding USAA, which is exclusive to military families, Amica boasts the highest customer satisfaction score in New England according to J.D. Power. Nationally, it receives fewer complaints filed with the NAIC than anticipated for an insurer of its size. Furthermore, it earns an impressive B rating from repair facilities that contribute to the Crash Network, which typically rates most insurers as C or lower.

Amica’s telematics program is particularly noteworthy, as it allows customers to earn rewards for safe driving that can be redeemed for gift cards from popular retailers like Amazon and Target.

However, Amica’s premiums can be higher than average in price comparisons, making it a better fit for individuals who prioritize outstanding customer service over cost savings.

GEICO is a reliable insurance provider, scoring about average in terms of customer satisfaction in New England according to the 2024 J.D. Power U.S. Auto Insurance Study. It also maintains a better-than-average complaint record with the NAIC. While GEICO’s premiums are generally moderate, they can sometimes be significantly lower than those of competitors for certain drivers.

GEICO excels in offering telematics or usage-based insurance (UBI) policies. In national rankings, J.D. Power identifies GEICO as a leading provider for telematics-based insurance satisfaction.

GEICO’s UBI program operates through its mobile app, enabling users to upload images of vehicle damage and quickly obtain repair estimates, thereby streamlining the claims process.

Furthermore, GEICO offers an extensive range of discounts, making it attractive for drivers who belong to alumni or professional organizations, as well as clients of other businesses under the umbrella of its parent company, Berkshire Hathaway.

Nationwide does not have a customer satisfaction score for New England according to J.D. Power due to insufficient data; however, it tends to rank average in other regions. Notably, this insurer excels in handling claims, as highlighted by J.D. Power, and its premiums are frequently more affordable compared to competitors.

Nationwide also leads in customer satisfaction for its telematics programs. The company offers two distinct programs: one emphasizes providing discounts for safe driving under normal policies, while the other allows drivers to pay based on miles driven. Both programs are among the rare offerings that do not penalize customers with higher premiums if their driving is deemed risky.

Additionally, Nationwide provides an exceptionally generous policy for the replacement of new vehicles that are totaled. Whereas many competitors offer a replacement policy only for cars up to two years old, Nationwide extends this benefit to vehicles that are up to three years old.

State Farm receives recognition from J.D. Power for its above-average customer satisfaction ratings in New England, coupled with a lower-than-average number of complaints filed with the NAIC.

State Farm’s premiums can be more competitive than those of certain other insurers, particularly for teen drivers.

State Farm is particularly notable for its offerings for younger drivers, including a Good Student Discount of 25% for teen drivers maintaining a GPA of at least 3.0 until they reach 25 years old, a more substantial reduction than most competitors provide. Additionally, the insurer offers a Student Away at School Discount, which allows for insurance coverage that only charges for the student while they are home for breaks and holidays, providing potential savings for families with college-aged drivers.

Step-by-Step Guide to Car Insurance in Vermont

To ensure your car insurance coverage in Vermont meets both state requirements and your personal protection needs, follow these essential steps.

Understanding Vermont’s Car Insurance Requirements

Similar to most other states, Vermont has established specific requirements regarding the types and amounts of car insurance its drivers must maintain. Below are the minimum insurance requirements necessary for legal driving within the state.

Bodily Injury Liability Coverage

This component of your insurance policy offers financial protection in the event you injure someone during an auto accident. Your liabilities may include medical expenses, pain and suffering, and lost wages incurred by the injured party.

Vermont mandates a minimum of $25,000 per person and $50,000 per accident for bodily injury liability coverage.

Property Damage Liability Coverage

This coverage protects you in scenarios where you cause damage to another individual’s property during a car accident. This includes damages to other vehicles and property such as fences or other structures.

Vermont requires a minimum of $10,000 in property damage liability coverage per accident.

Uninsured Motorist Bodily Injury Coverage

While Vermont maintains a relatively good record for the proportion of insured drivers on its roads, it still mandates that all car insurance policies include protection against uninsured or underinsured drivers in the event of an accident.

Vermont’s minimum requirements for this coverage are set at $50,000 per person and $100,000 per accident.

Medical Payments Coverage

This optional coverage can assist in covering medical expenses for injured drivers and passengers after an accident, regardless of who is at fault. It can cover costs associated with ambulance services, hospital stays, surgeries, and rehabilitation treatments.

Although Vermont does not mandate MedPay, it remains available as an optional coverage choice.

Opt for More Coverage Than the Minimum When Possible

Insurance experts frequently recommend that drivers secure coverage exceeding the mandated minimums if their finances permit. This advice holds true even in Vermont, where the legal requirements are comparatively stringent.

For liability coverage, it is often suggested to carry at least $100,000 per person and $300,000 per accident for bodily injury, along with $100,000 designated for property damage.

While choosing lower liability insurance limits may reduce your premiums, it also significantly increases your financial exposure in the event of an accident, particularly if substantial injuries occur. Such incidents could lead to total liabilities that exceed six figures, potentially jeopardizing valuable assets like your home or other properties if you lack sufficient means to cover the costs.

Regarding medical payments coverage, although it is not a requirement in Vermont, it may still be worth considering. When selecting limits for this coverage, aim for an amount that can adequately cover your health insurance deductible alongside any potential out-of-pocket expenses; typical limits can range from $1,000 to $10,000. It’s advisable to review your existing medical coverage and determine whether additional coverage beyond the state minimums is necessary to align with this guideline.

Evaluate Coverage Requirements Imposed by Lenders

When financing a vehicle, auto loan lenders seek assurance that their investment is safeguarded in the event of damage or total loss. As the lender retains the title until the loan is fully repaid, they require proof of adequate insurance coverage.

This implies that lenders in Vermont may demand that financed vehicles have insurance coverage, regardless of the absence of such a requirement at the state level. In addition to maintaining a specified level of liability coverage, auto loan lenders generally require the following types of insurance:

Comprehensive Insurance, which protects against damages resulting from incidents other than collisions, such as theft, vandalism, or natural disasters.

Collision Insurance, which covers damages incurred during collisions with other vehicles or objects.

Lenders may also ask for additional coverages that are not mandated in Vermont, such as gap insurance, which bridges the financial gap between the depreciated value of the vehicle (typically the maximum payout in the event the vehicle is deemed a total loss) and the remaining loan balance.

If you fail to uphold the required insurance coverage, your lender may purchase insurance on your behalf, which could end up being more expensive than if you had acquired it yourself, and the cost may be added to your loan balance.

Ensure you thoroughly review your loan agreement to understand your lender’s specific insurance requirements.

Strategies for Reducing Car Insurance Costs in Vermont

Implementing some straightforward strategies can help decrease your car insurance costs. (In addition to these methods, you might also consider switching insurers to achieve better rates; here’s a guide on how to switch car insurance.)

Explore Available Discounts

As with all states, various insurance companies in Vermont offer an array of discounts based on factors like your driving record, loyalty to your insurer, and more. Common discounts include reductions for maintaining a spotless driving record, completing a defensive driving course (which can now be taken online), and achieving good grades as a student.

Bundle Your Insurance Policies

Many insurers allow you to combine your car insurance with homeowners or renters insurance, resulting in lower rates for both policies. The typical discount for bundling auto and home insurance ranges from approximately 5% to 15%, which can translate to substantial savings each year.

Increase Your Deductible

The deductible refers to the portion of a claim that you must pay out of pocket before your insurance provider covers the remaining costs. Raising your deductible could lead to more affordable premiums; however, exercise caution to ensure that the deductible amount remains manageable in the event of an accident.

Regularly Review Your Insurance Policy

It’s prudent to reassess your insurance policy during its annual renewal or whenever significant life changes occur, such as adding or removing drivers or altering your commuting patterns. These evaluations help ensure that you maintain adequate coverage while avoiding unnecessary expenses.

Consider Reducing Coverage

You may lower your annual premium by dropping collision or comprehensive coverage on vehicles that are not under a lease or loan. However, exercise caution when eliminating such coverage if you cannot afford to replace your vehicle in the event of an accident.

Investigate Usage-Based Insurance Options

Switching to usage-based insurance (UBI) can lead to savings in multiple ways. With UBI, also referred to as “telematics,” you consent to the monitoring of your driving behaviors, including speed, turning habits, and braking patterns through an app or device.

Sometimes, you can receive a discount simply for trying out telematics. If your driving meets the insurer’s safety criteria during the evaluation period, you may then benefit from ongoing discounts on your policy.

Shop Around for More Competitive Rates

It’s beneficial to compare quotes from at least three different insurance providers, as this can help you secure the most affordable rate without sacrificing crucial coverage. Nevertheless, avoid making your decision solely based on rates and discounts. Take into account the company’s history regarding customer service, including claims processing, and evaluate their flexibility in policy options, such as deductibles. Assessing the insurers’ digital tools and mobile applications is also advisable.

Our Methodology for Selecting Top Insurance Providers

We meticulously selected our top picks by analyzing various factors to evaluate the standout companies in the market. Below are the criteria, presented in rough order of significance in our analysis:

• Customer Experience: We prioritized companies that excel in one or more reputable satisfaction studies. Whenever available, we referenced the insurer’s customer satisfaction score for New England from J.D. Power’s 2024 U.S. Auto Insurance Study. If unavailable, we relied on national data regarding satisfaction with claims and the shopping process. Additionally, we considered the complaints index from the National Association of Insurance Commissioners, where a lower number indicates fewer complaints than expected for the insurer’s size, along with reports from the CRASH Network that assess insurers based on feedback from automotive collision repair professionals.
• Pricing Profile: While the rate you pay for car insurance varies based on personal factors, we conducted an analysis of eight online assessments of car insurance rates to gauge each company’s pricing relative to competitors.
• Discounts: We acknowledged the breadth and generosity of each company’s discounts, including those for bundling auto coverage with other insurance types, maintaining loyalty, remaining claim-free, being a good student, and completing defensive driving courses.
• Technology: The majority of insurers now utilize apps to facilitate premium quotes, claims processing, and more. Companies received recognition for the quality and functionality of their mobile applications, as indicated by our research and assessments from J.D. Power regarding the best auto insurance apps.
• Financial Stability: An insurance company’s financial stability can be assessed through its A.M. Best financial strength rating. We focused on insurers that received an A rating or better.

Overview of the Best Car Insurance Picks in Vermont<br />

Allstate
Amica
GEICO
Nationwide
State Farm