Automobile Insurance Surcharges

V.S.A. tit. 8, ch. 127, subch. 3

in effect

8 V.S.A. § 4671 Definitions

4671. Definitions As used in this subchapter: (1) “Accident” means any occurrence with a motor vehicle involving the applicant, insured, or any operator of a private passenger type motor vehicle currently a resident in the same household that results in physical contact between the motor vehicle owned or operated by the insured or applicant, and a person or another object. (2) “Conviction” means a judicial determination of guilt by a court of competent jurisdiction regardless of whether a trial was held and regardless of whether a sentence was imposed. It shall include a plea of nolo contendere, a finding of guilt as the result of a defendant’s voluntary nonappearance in court, or a conviction after appellate remand. It shall not include a conviction reversed with finality. (3) “Experience period” means the three years immediately preceding the date of application or the 39 months preceding the renewal date of the policy. (4) “Insured” means a person owning a private passenger type automobile and includes a relative of an owner or a minor in the custody of an owner or relative, if the relative or minor resides in the same household as does an owner. (5) “Surcharge” means any amount of premium charged to or paid by an applicant or insured based on experience or record that makes the amount of the premium greater than that imposed on or charged to other applicants or insureds having more favorable experience or records. Added 1975, No. 75; amended 1993, No. 196 (Adj. Sess.), § 1.

8 V.S.A. § 4672 Accidents

4672. Accidents A surcharge to a private passenger automobile policy may only be applied during the experience period for an accident in which the insurer makes a payment for: (1) death; (2) personal injury, where the net payment for any accident exceeds $900.00; or (3) property damage, where the net payment for any accident exceeds $1,000.00. Added 1975, No. 75; amended 1979, No. 28, § 4; 1993, No. 196 (Adj. Sess.), § 2, eff. Oct. 1, 1994.

8 V.S.A. § 4673 Exceptions

4673. Exceptions (a) No rate increase may be applied for a claim payment under uninsured motorist, medical payment, comprehensive, fire, theft, or a combined additional coverage. (b) This subchapter shall not apply to an automobile that is: (1) [Repealed.] (2) used in the business of driver training; or (3) insured under a commercial plan. (c) No surcharge may be applied to a policy written for a term in excess of 12 months unless that policy provides for an annual adjustment of premiums. (d) The Commissioner may by rule designate mitigating circumstances, the existence of any of which shall remove the basis for application of a surcharge. (e) If a policy is surcharged as the result of an accident and subsequently the circumstances of the accident are found to include a mitigating circumstance, the insurer shall refund to the insured the increased portion of the premium generated by the accident. Added 1975, No. 75; amended 1979, No. 28, § 7.

8 V.S.A. § 4674 Convictions

4674. Convictions (a) The Commissioner may by rule specify motor vehicle and criminal violations conviction of any of which may be used as a basis for a surcharge. (b) Notwithstanding subsection (a) of this section, only those motor vehicle violations that occurred during the experience period may be used as a basis for a surcharge. (c) An adjudication under 7 V.S.A. § 656 may not be used as a basis for a surcharge. Added 1975, No. 75; amended 1993, No. 16, § 1; 1999, No. 160 (Adj. Sess.), § 10.

8 V.S.A. § 4675 Two or more automobiles

4675. Two or more automobiles When more than one automobile is insured in the same policy, a surcharge as the result of an accident or conviction, or both, may only be applied to that automobile principally operated by the insured, applicant, or other operator currently resident in the same household who generated the surcharge. Added 1975, No. 75.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/08/127Fetched: 10/21/2026