In Vermont, automobile liability coverage is essential.
Every person who operates a motor vehicle must have a minimum amount of liability insurance. If a negligent driver causes bodily injury to another person, the negligent driver’s liability insurance will provide compensation to the injured person. However, liability insurance has a limit of coverage depending on what is chosen at the time of purchase.
The Vermont Legislature sets a minimum amount of liability coverage which must be purchased by anyone who owns and operates a motor vehicle. Presently, the minimum is $25,000 for injury or death to any one person, and $50,000 for any one crash in which multiple people are injured by a negligent driver. See 23 V.S.A. § 800(a).
The coverage limits for an automobile insurance policy are typically set forth on a 1-page document called a “declaration” or a coverage summary. The following is an example of an Automobile Insurance Coverage Summary for a policy issued by Progressive Northern Insurance Company showing liability coverage of $100,000 per person and $300,000 per accident (if multiple people are injured in one crash). This $100,000/$300,000 liability coverage is fairly common in Vermont.