Best Car Insurance in Vermont

Insurance companies in Vermont have 35 business days to settle a claim after it is filed. Vermont insurance companies also have specific timeframes in which they must acknowledge the claim and then decide whether or not to accept it, before paying out the final settlement.

Insurance Claim Timeline in Vermont

• 10 business days to acknowledge the claim and send the policyholder instructions and paperwork. This includes proof-of-loss forms, which serve as a sworn statement from the policyholder about the scope of the damage or injuries.
• 15 business days to make a decision on the claim after receiving completed proof-of-loss forms.
• 10 business days to make the final payment if the claim is approved.

There are several factors that can affect exactly how long it takes for an insurance company to settle a claim. For example, claims involving serious or multiple injuries take longer to settle. Additionally, poor communication between the driver, insurance company, and insurance adjuster can slow down the process.

Still, you are entitled to an efficient settlement. If you think that your insurance company is violating the law or operating unethically, you can file a “bad faith” lawsuit, which may award you the original settlement amount with added interest and penalties.

Gap insurance in Vermont works the same way as gap insurance in the rest of the U.S., by paying the balance remaining on a car loan or lease contract after a liability, comprehensive, or collision policy pays out the actual cash value of a totaled vehicle. The state of Vermont doesn't require any driver to carry gap insurance. However, certain lenders in Vermont may require customers to carry gap insurance – short for guaranteed asset (or auto) protection insurance – if they get a car loan or lease.

Dozens of companies, including banks and dealerships, offer gap insurance in Vermont. While you should take your time deciding which one is right for you, you can also have confidence in the fact that gap insurance works the same way in Vermont as in the rest of the country.

Best Gap Insurance Companies in Vermont

• Esurance
• PURE Insurance Company
• Nationwide
• Shelter Insurance
• The Hartford

It's worth noting that gap coverage is usually cheaper to purchase from an insurance company than a dealership. For more information, check out WalletHub's complete guide to gap insurance.

No, you cannot insure a car with a salvage title in Vermont. Salvage vehicles are cars that have been declared a total loss, meaning they're too damaged to be worth repairing and cannot be driven legally. As a result, no legitimate car insurance company writes policies for them.

Although insurance companies in Vermont won't insure a car with a current salvage title, you can get coverage if you have the vehicle repaired and inspected by a state-certified mechanic. If it's declared safe to drive, the DMV will issue the car are built title. Several insurance companies, including Allstate and Geico, sell policies to vehicles with a rebuilt title.

Keep in mind that some insurers will only sell liability insurance for rebuilt cars, meaning that they won't pay for any physical damage to the vehicle. Even if you are able to get collision and comprehensive insurance, your policy may not cover the full value of the car if it's totaled again.

You can get car insurance discounts in Vermont based on how you drive, the car you own, and your relationship with your insurance company. In Vermont, car insurance companies are allowed to consider factors like employment, residential, and marital status when setting premiums. That means there are also discounts available for being married, owning a home, or being affiliated with certain employers or educational institutions.

Almost anyone can get a discount on car insurance in Vermont because most insurance companies make it easy to qualify for a variety of savings. Vermont insurers typically offer discounts that fall into one of three categories—policy discounts, driver discounts, and vehicle discounts.

Policy discounts typically reward customer behavior that is desirable to the insurance company. For example, most Vermont drivers can save by registering for paperless billing or getting both home and auto policies from the same company. Driver discounts are available to Vermont residents who are lower-risk to insure, like those with clean driving records. And vehicle discounts help drivers save if their car has certain safety features or anti-theft systems.

Car Insurance Discounts in Vermont

Remember, discounts vary among different insurance companies, so it's always best to contact the provider directly to determine which discounts you qualify for.

No, Vermont is not a no-fault state. Vermont is an at-fault (or “tort”) state. That means the driver who causes an accident uses their insurance to pay for the other driver's bills from the collision. Police and insurance companies use the available evidence to decide who is at fault for the accident. Then the at-fault driver's insurance pays to cover the other driver's damages. Depending on their coverage, they might have insurance for their own damages, too.

“Fault” can be shared by drivers – for example, one driver could be 20% responsible for an accident while the second driver is 80% responsible. Vermont has modified comparative negligence laws. That means if you are 50% or more at fault, you can't collect any damages from the other driver. If you're less than 50% at fault, you can collect damages minus the percentage that you're at fault. So if you're 30% at fault, you can recover 70% of what you spent on damages after the crash.

Why You Should Care That Vermont is a Tort/Fault State

In tort states like Vermont, medical coverage only pays out after fault has been determined. That means there are more legal hoops to jump through and a longer waiting period before fault is decided and a driver can get reimbursed. This type of system has other implications for drivers, too, including some that vary by state due to nuances in local car insurance laws.

Here's what tort insurance means for Vermont drivers:

• Tort insurance is typically cheaper than car insurance in no-fault states.
• Drivers can sue the at-fault party for almost any type of loss after their collision. This includes lost wages, emotional distress, and hospital bills that exceed the at-fault driver's coverage.
• You can collect damages from the other driver as long as you are less than 50% responsible for the accident.
• Vermont has a statute of limitations of 3 years after a car accident. That means you have 3 years from the time of the car accident to sue the at-fault driver, or vice versa.

Vermont vs Other Tort/Fault States