All drivers are required to have auto insurance in the state of Vermont. You must carry proof of insurance on you at all times, even when registering your vehicle. If you do not have proof of insurance with you while driving, it could result in having to pay a fine of $100 and two points will go toward on your driving record. Not only does this happen, but you also have to furnish proof of financial responsibility with the Vermont Department of Motor Vehicles (DMV). If you are caught with out proof of insurance when you get into an accident, your license can be revoked. This also applies if you are driving drunk or recklessly, driving away from an accident, driving with a suspended or revoked license, or driving a vehicle without the consent of the proper owner.

You must have at least minimum liability coverage that meets the state's minimums of $25,000 for injury or death to one person, $50,000 for injuries or deaths of two or more people, and $10,000 for damages to property in any one accident. This is the absolute minimum required, and there are several different plans available at differing amounts of coverage. For example if the value of your property is high, you may want more than $10,000 to cover damages to your property. Drivers in the state of Vermont also have the option to furnish evidence of self-insurance in the amount of $115,000. You may also purchase a surety bond for the same amounts as the minimum liability coverage listed above. As for insurance for a rental car, many insurance plans already cover rental vehicles. If yours does not, you can purchase insurance for the vehicle from the rental agency for around $9 a day.

You will receive proof of insurance from an insurance company that is authorized to conduct business in the state of Vermont. They should also provide proof to the Commissioner of Motor Vehicles, via certificate or computer. On the proof of insurance you receive, it will state the name of the insurance provider, effective coverage and expiration dates, your name, a description of the vehicle that is insured, and the limits of liability.