Vermont insurance laws
Insurance regulations, rate filing requirements, department info, and recent bulletins for Vermont. Updated Aug 23, 2026.
Vermont DOI page content changed
Vermont DOI Website · Aug 23, 2026
Department of Insurance
The Vermont Department of Financial Regulation oversees the insurance industry to ensure affordability, availability, and compliance with state laws. It conducts audits and reviews insurance policies to protect consumers from unfair practices.
Auto Insurance
Notable Laws
- 23 V.S.A. § 941 - Mandatory UM/UIM coverage equal to liability limits (minimum $50,000/$100,000)
- 23 V.S.A. § 801 - Minimum liability coverage $25,000/$50,000/$10,000
- 23 V.S.A. § 800 - Continuous proof of financial responsibility required
- 23 V.S.A. § 941(a) - UM/UIM property damage coverage with $150 deductible
- S.7 (2025) - UIM redefined; at-fault payments don't reduce UIM benefits (effective 1/1/2026)
- 8 V.S.A. § 4204 - Uninsured Motorist Coverage
- 8 V.S.A. § 4205 - Underinsured Motorist Coverage
- 8 V.S.A. § 4206 - Personal Injury Protection
- 8 V.S.A. § 4207 - Financial Responsibility
- 8 V.S.A. § 4208 - Motor Vehicle Liability Insurance
Homeowners Insurance
Notable Laws
- 8 V.S.A. § 3881 - 45-day advance notice required for nonrenewal
- 8 V.S.A. § 3880 - 45-day cancellation notice (15 days for nonpayment or increased hazard)
- 8 V.S.A. § 4727 - Credit scoring allowed with restrictions and consumer protections
- 8 V.S.A. § 4725 - Prohibition on certain unfair trade practices in property insurance
- Flood coverage separate through NFIP; no state-mandated homeowners insurance
- 8 V.S.A. § 4801 - Homeowners Insurance Coverage
- 8 V.S.A. § 4802 - Fair Plan Coverage
- 8 V.S.A. § 4803 - Cancellation and Nonrenewal
- 8 V.S.A. § 4804 - Credit Scoring Regulations
- 8 V.S.A. § 4805 - Flood Insurance Requirements
Recent Bulletins
Virtual Adjustment of Vehicle Partial And Total Loss Claims (Revised)
This bulletin provides updated guidance on virtual adjustments for vehicle claims.
View bulletinRating of Disabled Medicare Supplement Policyholders Upon Turning 65
This bulletin outlines the rating requirements for disabled Medicare supplement policyholders.
View bulletinHealth Insurance Coverage for Part-Time Employees
This bulletin discusses health insurance coverage requirements for part-time employees.
View bulletinOut-of-Pocket Maximum for Prescription Drugs
Addresses out-of-pocket maximum requirements for prescription drug coverage.
View bulletinFirefighters' Workers' Compensation Data Call
Issues a data call to all workers' compensation insurers for firefighters' workers' compensation claims information.
View bulletinRecent Law Changes
Automobile Insurance - Underinsured Motorist Coverage
Amends statutes governing uninsured and underinsured motorist coverage. Redefines an underinsured vehicle and prohibits insurers from exercising subrogation rights against third parties for medical costs paid under medical payments coverage.
Auto insurance policyholders benefit from enhanced UIM coverage as payments from at-fault parties no longer reduce their UIM benefits.
Effective: 2026-01-01
Regulation of Insurance Products and Services
Comprehensive insurance legislation affecting captive insurance companies, property and casualty rate filing procedures, and Medicare supplement insurance provisions. Codifies established regulatory practices for captive insurance.
Insurers must comply with updated rate filing procedures for property and casualty insurance, effective July 1, 2025.
Effective: 2025-05-19
Hospital Outpatient Prescription Drug Price Limits
Limits how much Vermont hospitals can charge health insurers for outpatient prescription drugs, establishing reference-based pricing caps.
Health insurers and policyholders benefit from reduced hospital prescription drug charges, potentially lowering premiums.
Effective: 2025-07-01
Prior Authorization and Step Therapy Requirements
Transforms health insurance with new rules on prior authorization, payment policies, claims editing, and step therapy. Requires transparency and timely processing of prior authorization requests.
Health insurers must comply with stricter prior authorization and step therapy protocols, benefiting patients with faster coverage decisions.
Effective: 2025-01-01
Captive Insurance Company Updates
Updates the Vermont Captive Insurance Act, codifying established regulatory practices for risk retention groups, reporting requirements, and protected cell compliance.
Captive insurance companies must comply with updated statutory requirements aligning regulations with industry practices.
Effective: 2024-05-20
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