What Happens If the Person at Fault in an Accident Has No Insurance in Vermont?

Vermont follows an at-fault auto insurance system, which places full financial responsibility on the driver who causes a motor vehicle accident. This includes liability for medical expenses, property damage, lost wages, and other associated costs. When the at-fault driver is properly insured, their liability coverage typically addresses these damages.

However, if the at-fault driver is uninsured, the situation becomes significantly more complex. According to 23 V.S.A. § 800, all drivers operating a motor vehicle in Vermont are legally required to carry minimum liability insurance. Failure to comply constitutes a violation of state law and exposes the uninsured driver to both civil and administrative penalties.

In such cases, injured parties may need to file a civil lawsuit to seek compensation directly from the at-fault driver. If the uninsured motorist lacks sufficient assets, the injured party may struggle to recover the full amount owed. Alternatively, victims may rely on their own Uninsured Motorist (UM) coverage, if available, to cover losses resulting from the crash.

Driving without insurance is considered one of the more serious Vermont traffic violations and infractions, punishable by fines, license suspension, vehicle registration revocation, and mandatory proof of future financial responsibility through an SR-22 filing.

Is It Illegal To Drive Without Insurance In Vermont?

Yes. Every driver is required by law to carry at least the minimum liability coverage required by the state. Individuals can suffer serious consequences if discovered to be without insurance. Lack of insurance may result in the following:

• A $100 fee for inability to prove insurance during inspection
• A maximum $500 fee for being uninsured
• License suspension
• Maintenance of SR-22

What Is the Minimum Insurance Requirement in Vermont?

In Vermont, all drivers must have liability insurance to protect themselves from potential harm or property damage in the event of an accident. A minimum of the following coverage is required:

• $25,000 for a single person's harm or death
• $50,000 if two or more persons are hurt or killed
• $10,000 for property damage

This is frequently referred to as the 25/50/10 coverage. Furthermore, most Vermont insurance policies have uninsured and underinsured motorist (UM/UIM) coverage by default, protecting drivers if an uninsured motorist strikes them. Refusing this coverage is possible, but only in writing. Although not mandated by law, insurance providers frequently provide Medical Payments (MedPay) coverage to assist in paying for medical expenses regardless of fault.

What To Do After A Car Accident With an Uninsured Driver in Vermont

Drivers should look for ways to protect themselves and increase their chances of being compensated if they get injured by an uninsured driver. The steps below can help.

Step 1: Exchange Information and Gather Evidence: The victim should give the uninsured driver their personal and vehicle information and collect theirs too; take photos of the scene, damage, and license plate; and, if possible, collect witness names and statements to support any legal claim.

Step 2: Call the Police: Inform the police as soon as possible. Reporting is especially important if the accident results in serious injuries, death, or property damage.

Step 3: Report the Accident: If the accident results in injury, death, or property damage of $3,000 or greater, the victim must complete an MV Crash Report Form within 72 hours of the accident. The completed form should be sent to the Vermont Department of Motor Vehicles at the address below:

Vermont Department of Motor Vehicles
120 State Street
Montpelier, VT 05603-0001
Phone: (802) 828-2000

Step 4: Notify the Insurance Company: The insured driver should contact their insurance provider to notify them of the accident. They will most likely have an uninsured motorist (UM) coverage unless they specifically decline it in writing when getting their auto insurance policy. This coverage covers costs associated with medical bills, lost wages, and pain and suffering after an accident with an uninsured driver.

Step 5: Consider a Civil Lawsuit: The driver who caused the damage is personally responsible even without insurance. The victim may file a lawsuit in court, but if the driver has few assets, it may be hard to get compensation.

Step 6: Keep Records and Follow Up: The victim should keep copies of any correspondence with their insurer, the police report, medical bills, and repair estimates. This documentation can support legal claims.

What Happens If You Have No Insurance But The Other Driver Was At Fault?

In Vermont, driving without insurance can result in fines, license suspension, and the requirement to file SR-22. These penalties apply regardless of who was at fault in the accident. For financial losses like medical expenses or auto repairs, the uninsured motorist may still seek damages from the negligent party. Nevertheless, based on the facts of the case, their lack of insurance may limit their recovery of non-economic damages like pain and suffering.

Can I Sue an Uninsured Driver in Vermont?

Yes. In Vermont, a driver may bring a civil claim against an uninsured at-fault driver who caused them bodily injury or property damage. According to 12 V.S.A. § 5531, the victim can file claims for damages up to $10,000 in the small claims court. However, if the claim exceeds that amount, they must file their claim with the superior court. Small claims cases are generally quicker and less formal, but superior court trials contain more complicated processes and could require legal counsel.

Will My Insurance Cover Me If the At-Fault Driver Has No Insurance in Vermont?

When the at-fault motorist is uninsured, the victim's UM/UIM coverage is the main source of assistance. In addition to paying for injury-related costs, it offers a minimum of $10,000 for property damage after the $150 deductible (23 V.S.A. § 941). In addition, the victim's collision coverage and Medical Payments (MedPay), if available, can help cover any leftover expenses.

What Is Uninsured Motorist Coverage in Vermont?

Uninsured/underinsured motorist coverage in Vermont helps pay for injuries and losses when the at-fault driver is uninsured, underinsured, or cannot be identified (as in hit-and-run cases). This coverage typically matches the insured's minimum liability limits unless they choose a higher amount in writing. Although Vermont drivers are not required to carry UM/UIM coverage, insurers must offer it in every auto policy unless the customer declines. This protection is essential when the other driver fails to meet Vermont's insurance requirements.

What If I Don't Have Uninsured Motorist Coverage in Vermont?

It may be challenging to get compensation after a collision caused by an uninsured driver if the victim has no uninsured/underinsured motorist coverage. Still, there are a few attainable options:

Sue the At-Fault Driver

The injured side can sue the at-fault driver for missed wages, medical expenses, and auto repairs. Claims up to $10,000 can be filed in small claims court, while the superior court handles larger claims.

Request License Suspension for Unpaid Judgment

If a court makes a judgment and the uninsured driver does not pay, the victim may request that the Vermont DMV suspend the driver's license until the judgment is fulfilled.

Apply to a Victim Compensation Fund

Victims may qualify for financial assistance through the Vermont Center for Crime Victim Services in cases involving criminal conduct, like a hit-and-run or DUI.

How Do I Get Compensation from an Uninsured Driver in Vermont?

In Vermont, a person hurt by an uninsured driver may sue in small claims or superior court, depending on the damages. The plaintiff must file a complaint against the uninsured driver and serve them with the appropriate documents. The plaintiff may be given a default judgment if the defendant does not respond to the summons. If they respond, the lawsuit moves into discovery and could go to trial or settlement. Enforcement proceedings, such as license suspension or wage garnishment, may be taken by the plaintiff if the defendant does not pay the damages awarded by the court.

How Much Can You Recover From an Uninsured At-Fault Driver in Vermont?

In Vermont, an injured person may file a lawsuit against an uninsured at-fault driver for losses such as lost income, medical expenses, and property damage. The superior court has no damages limit; however, small claims are restricted to $10,000. 12 V.S.A. § 2903 allows for the annual accrual of 12% interest on unpaid judgments. However, the at-fault driver's capacity to pay determines the amount recoverable.

How To Find Out If the At-Fault Driver Has Insurance in Vermont

In Vermont, the police report about an accident, which includes information obtained at the scene, can be used to confirm an at-fault driver's insurance status. If this information is missing from the report, the injured person may contact the Vermont Department of Motor Vehicles or, if known, the other driver's insurance company.

According to the Vermont Rules of Civil Procedure, a plaintiff may also use formal discovery techniques, such as interrogatories, requests for production, or subpoenas, to gather information about the at-fault driver's insurance during a lawsuit.

Are Accidents Public Record in Vermont?

In Vermont, some accident data, such as police reports, are considered public under 1 V.S.A. § 317. For example, the general public can request police reports about an accident online through the DPS. However, not all accident records are open to members of the public. Law enforcement agencies do not release records that violate a person's right or jeopardize an ongoing investigation.

Court filings related to accident claims are public per the Vermont Rules for Public Access to Court Records (VRPACR).

Can You Go to Jail for Causing an Accident Without Insurance in Vermont?

Driving without insurance in Vermont is seen as a civil infraction rather than a crime, even if it causes an accident. This indicates that jail time is not the typical punishment. The penalties for causing an accident with insurance in Vermont include fines, SR-22 insurance requirements, and license suspension. However, it can quickly escalate to a jail term if the uninsured driver commits a crime, such as providing false insurance information to a police officer or forging insurance documents.

Can You Settle With an Uninsured Driver Out of Court in Vermont?

Yes, Out-of-court agreements with uninsured drivers are lawful and binding in Vermont. According to Vermont contract law, a written agreement signed by both parties is legally binding and may be enforced in court. Settlements allow both sides to avoid going to trial.

Can I Get Compensation If I Was Partially at Fault?

Yes. Under 12 V.S.A. § 1036, Vermont uses a modified comparative negligence approach. This means that even if someone is partially at fault for a collision, they can still get compensation as long as their percentage of blame is less than 50%.

If the court finds the claimant partially responsible for an accident, their compensatory award will be reduced by their determined percentage of fault. For instance, the claimant is entitled to 70% of their losses even if they bear 30% of the blame. However, they are not entitled to damages if they bear 51% or more of the blame.