In Vermont it is illegal for a vehicle to be operated if it isn't covered by a minimum amount of liability insurance. The minimum amount of liability insurance required is set by Vermont Statute (V.S.A., Title 23, Chapter 11, §800 as follows:

TITLE 23
Motor Vehicles

CHAPTER 11. FINANCIAL RESPONSIBILITY AND INSURANCE
Subchapter I. General Provisions

§ 800. Maintenance of financial responsibility

(a) No owner or operator of a motor vehicle required to be licensed shall operate or permit the operation of the vehicle upon the highways of the state without having in effect an automobile liability policy or bond in the amounts of at least $25,000.00 for one person and $50,000.00 for two or more persons killed or injured and $10,000.00 for damages to property in any one accident. In lieu thereof, evidence of self-insurance in the amount of $115,000.00 must be filed with the commissioner of motor vehicles. Such financial responsibility shall be maintained and evidenced in a form prescribed by the commissioner. The commissioner may require that evidence of financial responsibility be produced before motor vehicle inspections are performed pursuant to the requirements of 23 V.S.A. § 1222.

(b) A person who violates this section shall be assessed a civil penalty of not more than $100.00, and such violation shall be a traffic violation within the meaning of chapter 24 of this title. (Added 1985, No. 77, § 1, eff. Jan. 1, 1986; amended 1987, No. 163 (Adj. Sess.), eff. April 29, 1988; 1989, No. 84, § 5; 1997, No. 117, § 33, eff. Jan. 1, 1999.)

Anyone who violates this law (by operating or permitting operation of an uninsured vehicle) may be issued a (civil) traffic citation which would result in the required payment of a fine, the assessment of points against their driving privileges and/or license and the requirement that they file Financial Responsibility Insurance with the Vermont DMV.

Financial Responsibility Insurance is a type of liability insurance coverage on an individual (not on a specific vehicle). The person who has Financial Responsibility Insurance is covered to operate any vehicle (whether the vehicle is owned by this person or not).

The requirement of a filing of Financial Responsibility Insurance with the Vermont DMV may occur for a number of reasons. You may obtain specific statutory language pertaining to the reasons for this type of insurance requirement by going to the Vermont Legislature's web site and reading V.S.A, Title 23, Chapter 11, §801.

Individuals who are required to file Financial Responsibility Insurance with the Vermont DMV must maintain this type of insurance (on file with the Department) for a minimum of three years. Any time there is a lapse in this type of insurance coverage (for example, if the policy expires and is not renewed, or, the insurance company cancels the policy) the individual is issued a suspension of his/her driving privileges/license. The driving privileges/license are not reinstated until valid coverage of Financial Responsibility Insurance is again on file with the DMV.

The Vermont DMV has very specific requirements regarding the filing of Financial Responsibility Insurance and will accept only certain documents (an SR-22 certificate from an insurance company ---not from an insurance agent) that are completed in compliance with these requirements. You may obtain specific statutory language pertaining to these requirements by going to the Vermont Legislature's web site and reading V.S.A, Title 23, Chapter 11, §804.

TITLE 23 Motor Vehicles

CHAPTER 11. FINANCIAL RESPONSIBILITY AND INSURANCE Subchapter I. General Provisions

TITLE 23
Motor Vehicles

CHAPTER 11. FINANCIAL RESPONSIBILITY AND INSURANCE
Subchapter I. General Provisions