VT DMV Insurance and Financial Responsibility 3 — Questions and Answers
Question 1: Vermont's minimum auto insurance requirements are commonly written as which set of numbers?
- 25/50/10 (Correct answer)
- 15/30/5
- 50/100/25
- 20/40/10
Correct answer: 25/50/10
Vermont's minimums are $25,000 per person, $50,000 per accident, and $10,000 for property damage, written as 25/50/10.
Question 2: What does liability insurance pay for?
- Injuries and damage you cause to others (Correct answer)
- Damage to your own vehicle in any crash
- Your medical bills regardless of fault
- Theft of your vehicle
Correct answer: Injuries and damage you cause to others
Liability insurance covers bodily injury and property damage you cause to other people, not your own losses.
Question 3: Which coverage pays if your parked car is damaged by a falling tree branch?
- Comprehensive coverage (Correct answer)
- Collision coverage
- Liability coverage
- Uninsured motorist coverage
Correct answer: Comprehensive coverage
Comprehensive coverage pays for non-collision damage such as falling objects, fire, theft, and weather.
Question 4: In Vermont, what is required in addition to uninsured motorist coverage in every auto policy?
- Underinsured motorist coverage (Correct answer)
- Rental reimbursement coverage
- Gap insurance
- Roadside assistance coverage
Correct answer: Underinsured motorist coverage
Vermont law requires auto policies to include both uninsured and underinsured motorist coverage.
Question 5: A driver lends their insured car to a friend who causes a crash. Whose insurance is generally the primary coverage?
- The vehicle owner's insurance (Correct answer)
- The friend's insurance
- Neither policy applies
- The state's uninsured motorist fund
Correct answer: The vehicle owner's insurance
Auto insurance generally follows the vehicle, so the owner's policy is usually primary when a permitted driver crashes.
Question 6: What can happen to your Vermont driving privilege if you fail to satisfy a court judgment from an uninsured crash?
- Your license can be suspended until the judgment is satisfied (Correct answer)
- Nothing, as judgments do not affect licenses
- You receive only a written warning
- Your registration fee is doubled at renewal
Correct answer: Your license can be suspended until the judgment is satisfied
Vermont can suspend your license for failing to satisfy a judgment arising from a crash you caused while uninsured.
Question 7: Which factor typically does NOT affect your auto insurance premium?
- The color of your vehicle (Correct answer)
- Your driving record
- Your annual mileage
- The type of vehicle you drive
Correct answer: The color of your vehicle
Vehicle color has no effect on premiums, while driving record, mileage, and vehicle type do.
VT DMV Insurance and Financial Responsibility 3
Vermont's minimum auto insurance requirements are commonly written as which set of numbers?