Vermont Insurance

If you’re a Vermont resident looking for insurance, you’re in the right place. We’ve compiled all the info you need to help you find home, auto, life, health or long term care insurance right here on this page.

We recommend you read it over, contact the Vermont Insurance Division at (802) 828-3301 with any questions, and let us help you find the coverage you need today.

Auto Insurance

To be legally eligible to drive in this state, you must carry both liability and uninsured/underinsured motorist coverage.

Liability protects you from damages to other motorists or property stemming from your negligent driving. The lowest amount of liability coverage allowed by Vermont is 25/50/10: $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $10,000 for property damage per accident.

While these amounts may seem like a lot, they may not be enough to cover the damage if you cause a serious accident. For this reason, you should consider purchasing higher amounts of liability to optimize your protection.

Uninsured/Underinsured motorist coverage protects you if you are involved in an accident with another driver who does not have insurance, or does not have enough insurance to cover the damages. The lowest amount allowed by Vermont law is 50/100/10: $50,000 for bodily injury per accident, $100,000 for bodily injury per person and $10,000 for property damage per accident.

Remember that these are only minimums under Vermont law, so you may want to add extra coverage to your auto insurance policy to ensure adequate protection.

Your auto insurance premiums in Vermont will be determined by your classification rating, which is used to calculate risk. Some of the factors used to determine your classification rating are likely to include:

1. Your Driving Record—Blemishes on your driving record, such as accidents or tickets, will negatively impact your premium because they increase the risk the company takes to insure you.
2. Your Location—Congested areas see more auto accidents; so if you live, work or play in a metropolitan area, you will probably pay more to insure your vehicle.
3. Who Drives Your Car—Your premium will be affected by the driving records of everyone in your household. All have access to your automobile and will need to be covered in case they cause an accident.
4. Car Year, Make and Model—These factors will be used to determine how costly the automobile will be to repair or replace, as well as what kind of safety and security features it has to protect drivers and deter theft.

Health Insurance

Generally, when people refer to “health insurance,” they mean comprehensive medical insurance, which helps keep you healthy or restores you to health if you become ill. Health insurance is, in effect, financial protection against illness.

There are two basic ways to get health insurance in your state: through your employer, as part of your benefits package, or through an individual policy sold by a health insurance provider.

When you buy a health insurance policy, the insurance company agrees to pay certain expenses detailed in your policy in exchange for a “premium” payment. You pay your premiums on a monthly, quarterly or annual basis, and these amounts stay the same for a set period of time, usually a year.

The most common types of health insurance available in Vermont include:

• Indemnity, or “traditional” health insurance plans
• Health Maintenance Organizations (HMOs), or “managed care” plans
• Preferred Provider Organizations (PPOs)
• Point-of-Service plans (POSs)
• Medical Savings Accounts (MSAs)

Each type of plan contains its own procedures, medical providers, co-payments and deductibles. Ask a licensed insurance agent to explain these options to you further so you can make the best decision possible regarding which type of plan is right for you.

Depending on which type of plan you choose, your insurance policy may or may not cover certain medical procedures. Typically, only medically necessary services are covered, but some health plans cover more procedures than others. Make sure you understand what your plan does and does not cover before settling on any particular policy.

In general, covered services should include:

• Inpatient hospital care
• Routine medical services such as doctor’s visits, lab services, emergency care, and diagnostic procedures like X-Rays
• Mental health and substance abuse services
• Some types of chemotherapy treatment
• Coverage for disabled children and newborns
• Diabetes education and treatment
• Mammograms
• Maternity care

Home Insurance

Homeowners insurance protects you against two kinds of risk:

1. Risk of damage to your property—for your dwelling, loss of use of your dwelling, other structures on your land and any possessions therein
2. Risk of liability—protects you from financial responsibility if someone is hurt on your property

And, while you may groan over adding one more bill to your monthly expenses, think about the consequences of not insuring your home. Could you afford to replace your home and all your possessions?

Don’t worry—most people can’t. That’s why home insurance is an essential purchase that every homeowner needs to make.

You can protect your home in various ways in your state, depending on the type of policy you choose. The most common types of coverage are known as Basic HO-1, Broad HO-2 and Special HO-3.

Not surprisingly, Basic HO-1 coverage provides basic, lower-level coverage against perils such as lighting, fire, smoke, theft and vandalism. Broad HO-2 covers the same perils as HO-1, with expanded coverage against perils, such as building collapse and water leakage from home appliances. Special HO-3 is the most popular form of protection chosen because it covers damage from all perils, with the exception of earthquake and flood.

Those these three packages make up the majority of home insurance policies written in Vermont, other packages and coverages are also available. Ask your agent about all your options to make sure you purchase the right coverage for your home.

Life Insurance

Life insurance gives your family time to adjust to the transition caused by your passing. It provides for their needs, both long- and short-term.

When you buy life insurance, you agree to pay your life insurance company to insure you, and your insurer agrees to give your loved ones your premium payments if you die while the policy is in effect. You name a beneficiary (the one you wish to receive the money if you die), assuring your family of financial protection in your absence.

But how can you know how much coverage you should buy? Unfortunately, there is no clear-cut formula to determine that. Most consumer groups recommend up to five times your gross annual income; but others recommend ten times this amount.

By examining the following, you can help determine the scope of your life insurance needs on a more individual basis, both now and in the future. Think about:

• Immediate needs at the time of death, such as final illness expenses, funeral and burial cost and estate taxes
• Funds for a period of adjustment, including time and money to finance a move or find new, higher-paying jobs
• Ongoing financial needs, such as outstanding debts, child care, college tuition and retirement

Don’t forget to figure any additional assets you have into the equation, such as cash, savings, Social Security and pension. Any extra provision you leave your family makes it that much easier for them to survive without you.

Now that you have an idea how much coverage you might need, it’s time to set out finding the best rates. There are no secrets to this process, but following these guidelines may help you through the process:

1. Complete all insurance applications honestly and accurately.
2. Shop around, comparing agents and policies.
3. Work one-on-one with a knowledgeable life insurance agent to determine the amount and type of insurance protection you need.
4. Look for guaranteed renewal policies so your rates won’t go up as you get older.
5. Live a healthy lifestyle and maintain a healthy weight.
6. Buy your life insurance policy while you’re in good health.
7. Check into employer-sponsored programs.
8. Get as many quotes as possible before making your final decision.