The best and cheapest car insurance in Vermont

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According to our analysis, Progressive is the top car insurance provider in Vermont, earning 4.06 out of 5 stars for its combination of affordability, customer satisfaction and financial stability. Its average premium of $901 per year is $759 less than the statewide average.

Drivers in Vermont spend an average of $1,660 annually, or $138 monthly, on car insurance.

GEICO finished second with 3.94 stars, followed closely by Auto-Owners at 3.92 stars.

The table below shows the best car insurance companies in Vermont.

How we picked the top car insurance companies

When choosing the top car insurance companies in Vermont, we looked beyond just the average cost of coverage. We also reviewed customer satisfaction data from J.D. Power, financial strength ratings from AM Best and complaint trends reported by the National Association of Insurance Commissioners (NAIC). If state or regional data wasn’t available, we used national averages to keep the comparisons consistent and fair for readers.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Which insurers offer the cheapest car insurance in Vermont?

State Farm has the cheapest average car insurance rate in Vermont at $1,513 a year.

Other low-cost insurers in Vermont include:

• Nationwide, with average rates of $1,599 a year, or $133 a month
• GEICO, with average premiums of $1,616 a year, which comes out to $135 per month

On the higher end, Vermont Mutual has the highest average premium at $1,857 a year.

Keep in mind that your actual rate may be different. Insurers consider factors like your driving record, credit score, age, vehicle and ZIP code when calculating premiums, so the cheapest company for the average driver may not be the cheapest for you.

Below are the cheapest car insurance rates by state, based on a profile of a 40-year-old driver with a Honda Accord LX to ensure fair, apples-to-apples comparisons. Rates are for full coverage car insurance.

What is full coverage car insurance in Vermont?

Full coverage car insurance isn’t a single policy – it’s a bundle of protections that offer more complete financial security. It generally includes liability coverage (required in most states), along with collision and comprehensive insurance. Collision pays to repair or replace your car after an accident, while comprehensive covers non-collision damage such as theft, hail, fire or vandalism.

Because it protects your own vehicle in addition to others, full coverage typically comes with a higher premium than minimum liability insurance. It can be especially worthwhile if you drive a newer vehicle, have an auto loan or lease, or own a car that would be expensive to repair or replace.

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How to find the best car insurance in Vermont

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. That means checking:

• The same liability limits
• The same deductibles
• The same coverage types

For instance, if one quote lists 25/50/25 in liability coverage and another lists 50/100/100, the lower premium may simply reflect less coverage rather than a better value. Many insurance agents suggest carrying at least 50/100/100, and higher limits may be appropriate depending on your income, assets and overall financial situation.

You can also lower your premium by:

• Maintaining a strong credit score
• Avoiding tickets and accidents
• Bundling home and auto insurance with the same carrier

Which companies have the cheapest car insurance for seniors in Vermont?

Senior drivers in Vermont generally pay higher car insurance rates than most age groups, though teens still tend to pay the most overall.

The cheapest car insurance companies for seniors in Vermont are:

• Progressive: $935 a year ($78 a month)
• Co-operative Insurance Companies: $1,366 a year
• State Farm: $1,470 a year

Insurers typically charge seniors more because premiums reflect overall risk trends, including claim frequency and age-related driving factors such as slower reaction times and vision changes. That said, many seniors can still find lower rates by keeping a clean driving record, driving fewer miles and taking advantage of mature driver or safe driver discounts.

The chart below shows the average car insurance premiums for senior drivers in Vermont.

Which companies have the cheapest car insurance for young adults in Vermont?

While young adults pay less than teen drivers, they still pay more than older more experienced drivers. The best choice for young adults (early 20s) in Vermont is Progressive with an annual rate of $2,000 or $167 a month.

State Farm had the second cheapest premium at $2,593 a year followed by Nationwide was third at $2,595.

If young drivers keep their driving record clean, their rates will drop down as they move out of their 20s.

The table below shows the best insurers for young drivers in Vermont:

Which companies have the cheapest car insurance for teen drivers in Vermont?

In Vermont, Progressive offers the cheapest car insurance for teen drivers, with average premiums of $3,037 per year or $253 per month.

“Teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

Auto-Owners is the next most affordable option at $3,890 per year or $324 per month, followed by Co-operative Insurance Companies at $3,957 per year.

The chart below shows average premiums for teens in Vermont:

Why the cheapest company may vary by driver

An insurer with the lowest average premium may not offer you the lowest price. Car insurance rates are personalized, and companies calculate risk differently based on individual driver profiles.

Several factors can affect what you pay, including:

• Driving history
• Credit profile (where permitted)
• Age and marital status
• The type of vehicle you drive
• Your ZIP code and local claim trends

Age plays a major role in pricing. Adding a teen to a policy can significantly increase premiums because teens are the least experienced drivers and tend to have higher accident rates.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

To help offset higher premiums, parents can explore good student discounts, choose a more affordable vehicle or reconsider certain coverages if the car’s value is low.

What is the average cost of car insurance in Vermont?

The average cost of car insurance in Vermont is $1,660 a year.

Car insurance rates vary widely from state to state because insurers base premiums on overall risk trends, including claim frequency, repair costs, state regulations and local accident data. Even within the same state, drivers can see different quotes depending on their driving history, age, vehicle and ZIP code.

The chart below displays the average rate in Vermont for a 40-year-old driver with 100/300/100 coverage and a $500 collision and comprehensive deductible driving a Honda Accord LX.

Which cities and ZIP codes in Vermont are the most expensive for car insurance?

Jeffersonville has the highest car insurance rates in Vermont, with average premiums reaching $1,736 per year across its most expensive ZIP codes.

Insurers use ZIP code data to assess localized risk factors, including traffic density, crime rates and exposure to severe weather. Urban areas with higher accident frequency or vehicle theft claims typically have the highest premiums.

According to our analysis of city and ZIP code data, the following areas are the most expensive in Vermont for car insurance:

Which Vermont cities and ZIP codes are the cheapest for car insurance?

The cheapest ZIP codes for car insurance in Vermont tend to be in rural areas where there are fewer people and cars which leads to lower accident and claim rates. South Burlington has the most affordable ZIP code in Vermont with an annual premium of $1,544.

How where you live in Vermont affects car insurance rates

Where you live in Vermont plays a major role in determining your car insurance premium. Insurers evaluate local risk factors such as accident frequency, traffic congestion, repair expenses and weather-related claims when calculating rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Gao.

Since each insurer applies its own pricing formula to these geographic risks, drivers with similar profiles can receive very different quotes depending on which part of the state they live in.

Which companies have the cheapest car insurance for high-risk drivers in Vermont?

Traffic violations and accidents can lead to higher car insurance premiums because insurers may view you as a greater risk.

For instance, a speeding ticket can increase the average premium to $2,060 and typically impacts rates for up to three years. An at-fault accident usually has a bigger effect, raising the average cost of coverage to about $2,467.

A DUI is considered a serious violation and often results in the largest increase, with average premiums climbing to $3,358.

The table below illustrates the average rate increases following common driving incidents.

Minimum car insurance requirements in Vermont

Drivers in Vermont are required to carry at least 25/50/10 in liability insurance to legally operate a vehicle. This minimum coverage pays for injuries and property damage you cause to others in an accident.

However, state-required limits are often modest. In a major crash, medical expenses and vehicle repairs can quickly exceed those minimum amounts – and anything beyond your coverage becomes your financial responsibility.

To better protect your savings and income, many insurance professionals suggest higher liability limits, such as 100/300/50. Increasing your coverage can provide an added layer of financial security if the unexpected happens.

That required coverage translates into:

• $25,000 for injury/death per person
• $50,000 for injury/death per accident
• $10,000 for damage to property

Final thoughts on the best and cheapest car insurance in Vermont

The best car insurance in Vermont depends on your budget, driving profile and coverage needs. Progressive stands out for its overall value, offering competitive pricing along with strong customer satisfaction and solid financial strength.

That said, the cheapest insurer for the average driver may not be the cheapest for you. Factors like your age, driving history, vehicle and ZIP code all influence your final quote, which is why comparing multiple insurers is key.

To get the best rate in Vermont, compare quotes from at least three companies, review coverage limits (not just price) and take advantage of discounts such as bundling, safe driver, telematics or good student savings. A few minutes of comparison shopping can lead to significantly lower premiums without sacrificing coverage.

What our experts say

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

Teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups

Methodology

Our car insurance analysis is based on 2026 rate data across all 50 states and Washington, D.C., covering 29,159 cities and 34,595 ZIP codes.

For standard rate comparisons, we analyzed 65,756,440 quotes from 195 companies across 73 insurer groups. Rates reflect a 40-year-old male and female driving a Honda Accord LX with 100/300/100 liability limits, $500 collision and comprehensive deductibles, a good insurance score, no violations, a 12-mile commute and 10,000 annual miles. The national average premium for this profile is $2,578 per year.

To measure the impact of risk factors, we reviewed an additional 95,071,152 quotes modeling at-fault accidents, DUI/DWI, speeding violations and poor credit, using the same base profile for consistency.

Company rankings are weighted as follows:

• J.D. Power (30%) – customer satisfaction
• Annual premium (25%) – average cost
• AM Best (25%) – financial strength
• NAIC (20%) – complaint index

Alisha Ambre

 

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Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.

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