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Subchapter 001: GENERAL PROVISIONS
§ 800. Maintenance of financial responsibility
[Subsection (a) as currently effective; see also subsection (a) contingently amended
set out below.]
(a) No owner of a motor vehicle required to be registered, or operator required to be
licensed or issued a learner’s permit, 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 crash. In lieu thereof, evidence of self-insurance in the amount of $115,000.00
must be filed with the Commissioner of Motor Vehicles and 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 section 1222 of this title.
[Subsection (a) as contingently amended by 2015, No. 50, § 6; see also subsection (a) currently effective set out above.]
(a) No owner of a motor vehicle required to be registered, or operator required to be
licensed or issued a learner’s permit, 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 crash. In lieu thereof, evidence of self-insurance in the amount of $115,000.00
must be filed with the Commissioner of Motor Vehicles and shall be maintained and
evidenced in a form prescribed by the Commissioner. The Commissioner may adopt rules
governing the standards for insurance identification cards. The Commissioner may also
require that evidence of financial responsibility be produced before motor vehicle
inspections are performed pursuant to the requirements of section 1222 of this title.
(b) A person who violates subsection (a) of this section shall be assessed a civil penalty
of not more than $500.00, and such violation shall be a traffic violation within the
meaning of chapter 24 of this title.
(c) Every operator of a vehicle required to be registered shall have proof of financial
responsibility as required by subsection (a) of this section when operating a vehicle
on the highways of this State. A person may prove financial responsibility using a
portable electronic device; however, use of a device for this purpose does not in
itself constitute consent for an enforcement officer to access other contents of the
device. An operator cited for violating this subsection shall not be convicted if
the operator sends or produces to the issuing enforcement agency within seven business
days after the traffic stop proof of financial responsibility that was in effect at
the time of the traffic stop.
(d) A person who violates subsection (c) of this section shall be subject to a civil penalty
of not more than $100.00. (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; 2011, No. 46, § 6; 2013, No. 67, § 14; 2013, No. 189 (Adj. Sess.), § 13; 2015, No. 50, § 6; 2019, No. 14, § 62, eff. April 30, 2019; 2023, No. 85 (Adj. Sess.), § 279, eff. July 1, 2024.)
§ 801. Proof of financial responsibility required
(a) The Commissioner shall require proof of financial responsibility to satisfy any claim
for damages, by reason of personal injury to or the death of any person, 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 crash, as follows:
(1) From a person who is convicted of any of the following violations of this title:
(A) Death resulting from:
(i) careless and negligent operation of a motor vehicle; or
(ii) reckless driving of a motor vehicle.
(B) Any violation of section 1201 of this title or for any suspension pursuant to section 1205 of this title.
(C) Failing to immediately stop and render such assistance as may be reasonably necessary
following a crash resulting in injury to any person or property, other than the vehicle
then under his or her control.
(D) Operating, taking, using, or removing a motor vehicle without the consent of the owner
in violation of section 1094 of this title.
(E) Operating a motor vehicle after suspension, revocation, or refusal of a license, in
violation of section 674 of this title.
(F) [Repealed.]
(G) [Repealed.]
(H) The provisions of subdivisions (A), (C), (D), and (E) of this subdivision (a)(1) shall
not apply to an operator furnishing the Commissioner with satisfactory proof that
a standard provisions automobile liability insurance policy, issued by an insurance
company authorized to transact business in this State insuring the operator against
public liability and property damage, in the amounts required under this section with
respect to proof of financial responsibility, was in effect at the time of the violation.
Nor shall these provisions apply if the operator was a nonresident, holding a valid
license issued by the state of his or her residence, at the time of the violation,
and satisfactory proof, in the form of a certificate issued by an insurance company
authorized to transact business in the state of his or her residence, and accompanied
by a power of attorney authorizing the Commissioner to accept service on its behalf,
of notice or process in any action arising out of the violation, certifying that insurance
covering the legal liability of the operator to satisfy any claim or claims for damage
to person or property, in an amount equal to the amounts required under this section
with respect to proof of financial responsibility was in effect at the time of the
violation.
(2) From a person against whom there is an outstanding unsatisfied judgment of a court
of competent jurisdiction within this State for damages arising out of a motor vehicle
crash and based upon any violation of the provisions of this title.
(3) From the operator of a motor vehicle involved in a crash that resulted in bodily injury
or death to any person or property damage, including to the motor vehicle under the
operator’s control, in an aggregate amount to the extent of $3,000.00 or more, excepting,
however:
(A) an operator furnishing the Commissioner with satisfactory proof that a standard provisions
automobile liability insurance policy, issued by an insurance company authorized to
transact business in this State insuring the person against public liability and property
damage, in the amounts required under this section with respect to proof of financial
responsibility, was in effect at the time of the crash; or
(B) a nonresident operator holding a valid license issued by the state of his or her residence
at the time of the crash who furnishes satisfactory proof, in the form of a certificate
issued by an insurance company authorized to transact business in the state of his
or her residence, when accompanied by a power of attorney authorizing the Commissioner
to accept service on its behalf of notice or process in any action upon the policy
arising out of the crash, certifying that insurance covering the legal liability of
the operator to satisfy any claim or claims for damage to person or property, in an
amount equal to the amounts required under this section with respect to proof of financial
responsibility, was in effect at the time of the crash.
(b) The provisions of subdivision (a)(3) of this section shall not apply to the operator
of a motor vehicle, involved in a crash, if at the time of the crash the motor vehicle
he or she was operating, whether attended or unattended, was legally parked in any
location other than upon a public highway. Nor shall the provisions of that subdivision
apply to the operator of an all-terrain vehicle when the vehicle is registered and
operated pursuant to chapter 31 of this title.
(c) In lieu of the insurance policy or surety bond required under this section, a person
may qualify as a self-insurer by obtaining a certificate of self-insurance from the
Commissioner, who may, in his or her discretion, upon the application of such person,
issue said certificate of self-insurance, when he or she is satisfied that such person
is possessed of a net unencumbered capital of at least $115,000.00. The Commissioner
may require annual reports from any self-insurer, which reports must show at least
$115,000.00 unencumbered net worth. Whenever the Commissioner finds that any self-insurer
does not possess $115,000.00 of unencumbered net worth, he or she shall revoke the
certificate of self-insurance. Failure to pay any judgment, within statutory limits,
after such judgment shall have become final, shall constitute reasonable grounds for
the cancellation of a certificate of self-insurance. A certificate of self-insurance
obtained by a self-insurer shall insure every person operating a motor vehicle, owned
by said self-insurer, with his or her express or implied permission, against loss
within statutory limits from the liability imposed by law upon such person arising
out of the operation of said motor vehicle and shall be for the benefit of any person
suffering personal injuries or property damage arising out of the use of such motor
vehicle with such express or implied permission.
(d) Where erroneous information with respect to insurance coverage is furnished to the
Commissioner by the operator involved in a crash, the Commissioner shall, after receipt
by him or her of correct information with respect to such coverage, take appropriate
action as provided in section 802 of this title.
(e) Within 15 days after the receipt from the Commissioner of notice of claimed insurance
coverage, the insurance carrier named by the operator shall notify the Commissioner
in such manner as he or she may require in case the required insurance was not in
effect at the time specified in the notice. If no such notification is received by
the Commissioner within 15 days, the Commissioner may assume that the required insurance
was in effect at the time specified in the notice. (Amended 1965, No. 4, § 1; 1969, No. 227 (Adj. Sess.), § 2, eff. May 1, 1970; 1971, No. 151 (Adj. Sess.), §§ 1, 2, eff. March 2, 1972; 1971, No. 258 (Adj. Sess.), § 6, eff. March 1, 1973; 1977, No. 81, § 4, eff. April 27, 1977; 1977, No. 220 (Adj. Sess.), §§ 1, 2; 1979, No. 190 (Adj. Sess.), § 3; 1979, No. 194 (Adj. Sess.), § 1; 1983, No. 61, § 1; 1983, No. 240 (Adj. Sess.), § 2; 1985, No. 230 (Adj. Sess.), § 3; 1995, No. 17, § 1; 1995, No. 67 (Adj. Sess.), § 1; 1997, No. 117 (Adj. Sess.), § 34, eff. April 29, 1998, and Jan. 1, 1999; 1999, No. 102 (Adj. Sess.), § 2; 1999, No. 160 (Adj. Sess.), § 14; 2011, No. 46, § 7; 2015, No. 23, § 122; 2015, No. 47, § 20; 2019, No. 131 (Adj. Sess.), § 164; 2019, No. 170 (Adj. Sess.), § 2, eff. Jan. 1, 2021.)
§ 802. Suspension of license
(a) Proof of financial responsibility shall cover a person in the operation of any and
all motor vehicles operated by him or her. If he or she fails to furnish such proof,
when required under the provisions of section 801 of this title, within 20 days after notice from the Commissioner is mailed to him or her, until
such proof is furnished, the Commissioner shall suspend the license of an operator
or the right of an unlicensed operator or nonresident to operate any motor vehicle
in this State.
(b) [Repealed.]
(c) When a resident of Vermont, or an individual holding a Vermont operator’s license,
as a result of a motor vehicle crash in any other state has been required to furnish
the other state with evidence of future financial responsibility and because of failure
to do so the individual’s operating privilege has been suspended or revoked, upon
being notified by the proper official of such other jurisdiction of the suspension
or revocation, the Commissioner shall suspend the Vermont operator’s license or right
of the individual to operate motor vehicles, and the suspension shall remain in effect
until the individual furnishes the Commissioner with satisfactory evidence that the
individual has complied with the requirement to furnish the other state with evidence
of future financial responsibility.
(d)-(h) [Repealed.]
(i) No proof of financial responsibility shall be required, under subdivision 801(a)(3) of this title, and no license shall be suspended under that subdivision, unless the operator whose
license or right to operate motor vehicles is subject to suspension has been afforded
the opportunity of a hearing to determine whether the operator was, at the time of
the crash, injury, or damage in question, insured against public liability and property
damage in the amounts required under section 801 of this title with respect to proof of financial responsibility. If the operator requests a hearing,
and appears at the time and place provided, the Commissioner or his or her appointed
representative shall conduct a hearing, make findings, and render a decision. The
hearing examiner may consider such evidence as is offered and may consider also the
operator and investigating officer report or reports filed in connection with the
crash, injury, or damages as well as the assumption permitted under subsection 801(e) of this title. If the decision of the hearing examiner finds the operator to be uninsured at the
time of the crash, injury, or damages, then the person shall be required to provide
proof of financial responsibility under this subchapter and, if he or she fails to
do so, his or her license or right to operate a motor vehicle shall be suspended.
A person found to be uninsured may have the finding reviewed in the Superior Court.
The hearings provided for shall be conducted in Montpelier. Hearings shall be conducted
with a minimum of procedural requirements, so as to provide persons an opportunity
to be heard without delay and at reasonable expense to them and to the State. (Amended 1965, No. 4, § 2; 1971, No. 151 (Adj. Sess.), §§ 3, 4, eff. March 2, 1972; 1977, No. 175 (Adj. Sess.); 1977, No. 220 (Adj. Sess.), §§ 3, 4; 1979, No. 194 (Adj. Sess.), § 3, eff. May 6, 1980; 1983, No. 61, § 2; 1995, No. 67 (Adj. Sess.), § 2; 1997, No. 161 (Adj. Sess.), § 18, eff. Jan. 1, 1998; 2023, No. 85 (Adj. Sess.), § 280, eff. July 1, 2024.)
§ 803. Proof of financial responsibility to be kept in force
After a person has been required to file proof of financial responsibility, he or
she shall not thereafter be entitled to a renewal of his or her license, unless such
proof or a renewal thereof is kept on file and in force, except as provided in section 809 of this title. Notwithstanding any other provision of this title, any person required to furnish
proof of financial responsibility shall have his or her license or privilege to operate
a motor vehicle suspended and shall surrender the license on the date that the insurance
expires or is terminated. (Amended 1981, No. 180 (Adj. Sess.), § 2, eff. April 22, 1982.)
§ 804. Method of proof
(a) Proof of financial responsibility shall be furnished by an insurance company authorized
to do business in this State, in a form satisfactory to the Commissioner and shall
be evidence of the insuring of such person against claims and judgments for personal
injury and property damage in the amounts specified in section 801 of this title, provided the policy of insurance shall be noncancellable except after 15 days’ notice
to the Commissioner; or such proof may be the bond of a surety company, authorized
to transact business in this State, which bond shall be conditioned for the payment
of such amounts. An insurance company or surety company issuing such policy or bond
shall immediately furnish, for filing with the Commissioner, a satisfactory certificate
certifying that such policy or bond has been issued. Instead of the certificate, proof
may be furnished by any computer-generated means approved by the Commissioner. Once
proof furnished in this manner is accepted by the Commissioner, the insurance company
or surety company shall be bound in the same manner as if a certificate had been furnished
for filing.
(b) An insurance or surety company shall bear responsibility for its errors, including
failure to file in a timely manner, in connection with the filing of the certificate
referred to in subsection (a) of this section. All costs and expenses incurred by
insureds and the Commissioner of Motor Vehicles as a consequence of the failure to
file a properly executed certificate shall be paid by the insurance or surety company.
(c) The Commissioner may require that an insurance or surety company appoint an in-state
representative having authority to execute certificates on its behalf when an insurer
fails to submit properly executed certificates.
(d) If an insurer is not authorized to do business in this State, the Commissioner may
accept a written certificate, provided that the certificate issued on behalf of an
operator who is a nonresident of this State otherwise conforms with the provisions
of this chapter and the insurer complies with the following conditions with respect
to the policies certified:
(1) the insurer executes a power of attorney authorizing the Commissioner to accept service
on its behalf of notice or process in any action arising out of a motor vehicle crash
in this State; and
(2) the insurer agrees in writing that these policies shall be deemed to conform with
the laws of this State.
(e) If an insurer not authorized to transact business in this State but qualified to furnish
proof defaults in any undertakings or agreements, the Commissioner shall not accept
as proof any certificate of the insurer so long as the default continues. (Amended 1983, No. 101 (Adj. Sess.); 1987, No. 192 (Adj. Sess.), § 1; 1995, No. 67 (Adj. Sess.), § 3; 1997, No. 117 (Adj. Sess.), § 36, eff. Jan. 1, 1999.)
§ 805. Waiver of defenses against injured party
When evidence of the insuring of a person, convicted of a violation of a motor vehicle
law within the terms of this title, is offered as proof of financial responsibility,
the presentation of such proof shall include certification that the policy of insurance
or indemnity bond has a certificate waiving, as against injured persons, all defenses
based on false representation or breach of warranties as set forth in the application
for the policy of insurance or indemnity bond by the insured attached. Such contract,
bond, or policy of insurance shall be for the benefit of a person injured in person
or property, to the amounts indicated, to satisfy the legal liability of the insured. (Amended 2019, No. 131 (Adj. Sess.), § 165.)
§ 806. Additional evidence
Additional evidence of financial responsibility shall be furnished to the Commissioner,
at any time, upon the Commissioner’s request. (Amended 2023, No. 85 (Adj. Sess.), § 281, eff. July 1, 2024.)
§ 807. Bond
The bond shall be held by the Commissioner to satisfy an execution issued against
such person in a case arising out of damage caused by the operation of a motor vehicle
owned by such person.
§ 808. Repealed. 2007, No. 61, § 6.
§ 809. Waiver of proof of financial responsibility
(a) The Commissioner shall relieve an operator from the obligation to furnish proof of
financial responsibility after one year from the crash, conviction, or judgment giving
rise to the obligation. In the event that a suspension or revocation resulted from
the conviction giving rise to the obligation, an operator shall not be relieved of
the obligation to furnish proof of financial responsibility until one year after his
or her reinstatement eligibility date.
(b) Notwithstanding subsection (a) of this section, the Commissioner shall not relieve
an operator from the obligation to furnish proof of financial responsibility until
three years after a conviction of careless and negligent operation of a motor vehicle
resulting in death, conviction of reckless driving of a motor vehicle resulting in
death, or second and subsequent conviction of a violation of section 1201 of this title. In the event that a suspension resulted from the conviction giving rise to the obligation,
an operator shall not be relieved of the obligation to furnish proof of financial
responsibility until three years after his or her reinstatement eligibility date.
(c) This section shall not be construed to relieve an operator of his or her responsibility
to comply with the mandatory insurance requirement set forth in section 800 of this title. (Amended 1965, no. 69, eff. May 19, 1965; 1977, No. 220 (Adj. Sess.), § 4; 1979, No. 194 (Adj. Sess.), § 4, eff. Jan 1, 1981; 1983, No. 138 (Adj. Sess.), eff. April 7, 1984; 1987, No. 192 (Adj. Sess.), § 2; 1993, No. 17, § 1, eff. Jan. 1, 1994; 2019, No. 170 (Adj. Sess.), § 3, eff. Jan. 1, 2021.)
§ 810. Uncompensated victims; reporting requirements
The Commissioner of Financial Regulation, with cooperation of the Commissioner of
Motor Vehicles and the Commissioner of Public Safety, shall direct any company issuing
policies in this State insuring against liability arising out of the maintenance,
ownership, or use of any motor vehicle to provide such information, reports, and data
as the Commissioner determines will reasonably identify the number and characteristics
of uninsured motorists and uncompensated victims of automobile crashes in the State
in order to recommend policies designed to further reduce the numbers of uncompensated
victims of motor vehicle crashes. As a condition of conducting business in the State,
any company writing such policies shall comply with the directives of the Commissioner. (Added 1985, No. 77, § 5; amended 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a); 2011, No. 78 (Adj. Sess.), § 2.)
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Subchapter 005: INSURANCE AGAINST UNINSURED, UNDERINSURED, OR UNKNOWN MOTORISTS
§ 941. Insurance against uninsured, underinsured, or unknown motorists
(a) No policy insuring against liability arising out of the ownership, maintenance, or
use of any motor vehicle may be delivered or issued for delivery in this State with
respect to any motor vehicle registered or principally garaged in this State unless
coverage is provided for the protection of persons insured under the policy or a supplemental
policy who are legally entitled to recover damages, from owners or operators of uninsured,
underinsured, or hit-and-run motor vehicles, for bodily injury, sickness, or disease,
including death, and for property damages resulting from the ownership, maintenance,
or use of such uninsured, underinsured, or hit-and-run motor vehicle. The coverage
for property damages shall be sufficient to indemnify a claim for damages to which
the claimant is legally entitled of no more than $10,000.00 per claim, subject to
a $150.00 deductible; provided, however, to the extent that other direct damage coverage
is valid and collectible:
(1) this deductible shall not apply to a claimant who is otherwise insured for direct
damages to his or her motor vehicle, in which case:
(A) the coverage for property damages provided in this section shall be applied, without
deductible, to pay the deductible of the other direct damage coverage; and
(B) the balance of the direct damage claim, if any, shall be covered by such other direct
damages coverage to the extent of its limits; and
(2) further, any other claim for property damages, not direct damages, to which the claimant
is legally entitled, shall be paid by the coverage required by this section, without
deductible, to the extent of the limits provided in this section.
(b) Every policy insuring against liability arising out of the ownership, maintenance,
or use of any motor vehicle shall provide insurance against loss resulting from the
liability imposed by law for damages because of bodily injury or death of any person
within this State or elsewhere in the United States and Canada.
(c) The coverages under subsections (a) and (b) of this section for new or renewed policies
shall be not less than $50,000.00 for one person and $100,000.00 for two or more persons
killed or injured. If the limits of liability coverage in the policy are greater than
$50,000.00 for one person and $100,000.00 for two or more persons injured or killed,
the limits of uninsured motorist insurance shall be the same, unless the policyholder
otherwise directs.
(d) For the purpose of this subchapter, an “uninsured motor vehicle” includes an insured
other motor vehicle where:
(1) the liability insurer of the other motor vehicle is unable, because of its insolvency,
to make payment with respect to the legal liability of its insured within the limits
specified in its policy;
(2) the occurrence out of which the legal liability arose took place while the uninsured
vehicle coverage required under subsection (a) of this section was in effect; and
(3) the insolvency of the liability insurer of the other motor vehicle existed at the
time of, or within one year after, the occurrence.
(e) If payment is made under uninsured motorist coverage, and subject to the terms of
that coverage, to the extent of that payment, the insurer is entitled to the proceeds
of any settlement or recovery from any person legally responsible for the damage or
personal injury, as to which the payment was made, and to amounts recoverable from
the assets of an insolvent insurer of such person. However, if the injured party settles
or recovers against any person, any reimbursement due to an insurer under this section
shall be reduced by deducting a fair portion of all reasonable expenses of recovery
incurred in effecting the settlement or recovery. The expenses of recovery shall be
apportioned between the parties as their interests appear at the time of the settlement
or recovery.
(f) For the purpose of this subchapter, a motor vehicle is underinsured to the extent
that:
(1) the liability insurance limits applicable at the time of the crash are less than the
limits of the uninsured motorist coverage applicable to the insured; or
(2) the available liability insurance has been reduced by payments to others injured in
the crash to an amount less than the limits of the uninsured motorist coverage applicable
to the insured.
(g) Within 30 days after receipt of a written request by a person reasonably claiming
the right to recover damages after a crash involving owners or operators of motor
vehicles for bodily injury, sickness, or disease, including death, or for property
damages resulting from the ownership, maintenance, or use of a motor vehicle, an insurer
that may be liable to satisfy part or all of the claim under a policy subject to this
chapter shall provide a statement, by a duly authorized agent of the insurer, setting
forth the names of the insurer and insured, and the limits of liability coverage. (Added 1967, No. 374 (Adj. Sess.), § 1; amended 1979, No. 194 (Adj. Sess.), § 2, eff. Jan. 1, 1981; 1983, No. 61, § 3; 1985, No. 77, § 3; 1997, No. 117 (Adj. Sess.), §§ 35, 37, eff. Jan. 1, 1999; 2005, No. 9, § 1, eff. May 27, 2005; 2019, No. 131 (Adj. Sess.), § 169; 2021, No. 105 (Adj. Sess.), § 416, eff. July 1, 2022; 2023, No. 85 (Adj. Sess.), § 282, eff. July 1, 2024; 2025, No. 18, § 41, eff. May 13, 2025.)
§ 942. Binders and renewal endorsements; binders of insurance
An insurer authorized to issue automobile liability insurance may issue a binder,
in lieu of a policy, and issue a renewal endorsement or evidence of renewal of an
existing policy. Renewal endorsements and binders shall be deemed to include provisions
in accordance with this subchapter and rules adopted in furtherance thereof. (Added 1967, No. 374 (Adj. Sess.), § 2; amended 2019, No. 131 (Adj. Sess.), § 170.)
§ 943. Provisions in insurance policies
All policies of motor vehicle liability insurance delivered or issued for delivery
in this State shall be deemed to include provisions in accordance with this subchapter
and rules adopted in furtherance thereof. (Added 1967, No. 374 (Adj. Sess.), § 3; amended 2019, No. 131 (Adj. Sess.), § 171.)