Utah Car Insurance

In the state of Utah, all drivers are required by law to purchase vehicle insurance. Drivers who are licensed to drive and own a vehicle registered in Utah must carry continuous auto insurance to avoid citations, fines, and other serious criminal penalties.

If you are shopping for auto insurance to satisfy these state minimum car insurance requirements in Utah, it is important to take time to get familiar with the product before you buy. Be sure to compare policies by using the FREE tool above now!

Read this consumer guide to car insurance in Utah, and get familiar with state requirements, penalties for driving without insurance, and factors to consider when you are building a customized policy.

Utah and the No-Fault System

Every state has its own unique auto insurance requirements, and only 12 states in the nation operate under what is referred to as a no-fault system. As a no-fault state, Utah residents are required to carry Personal Injury Protection in addition to standard personal liability coverage to coverage claims for their own injuries.

This is because, in a no-fault state, the insurer of the party who is injured will pay for that party's injuries regardless of who caused the accident.

This system is in place to prevent bad faith claims and to reduce the cost of litigation for auto insurance claims. Some believe that the no-fault requirements protect the driver from lengthy investigations.

Others believe that this no-fault system does not protect individuals who are injured because of the negligence of other Utah drivers.

What are the car insurance requirements in Utah?

If you own a vehicle and you are a resident in Utah, or you are not a resident but you are present in the state for 90 days in a single year, you are legally required to maintain no-fault insurance while you are in the state.

You must also carry personal liability coverage, which will pay for liability claims for bodily injury and property damage if you cause an accident with an individual who does not carry no-fault cover. Here is a breakdown of the coverage options and limits that Utah law mandates you carry:

• Personal Injury Protection (PIP): $3,000 per person in medical expenses
• Bodily Injury Liability: $25,000 per person up to $65,000 per accident
• Property Damage Liability: $15,000 per accident

While these are the coverage limits that will satisfy state law, you should consider raising your PIP and Personal Liability limits for additional protection when possible.

Most licensed insurance agents in the state of Utah recommend that policyholders carry at least $100,000 per person, up to $300,000 per occurrence in Personal Liability coverage to protect assets.

If you have a high net worth or you are particularly at-risk of getting into an accident, you should go a step further and raise these limits or purchase a Personal Umbrella Policy for $1 million in blanket coverage over auto and home liability exposures. Price is important, but protection is more important.

Being Caught Driving Without Insurance

Choosing to drive without car insurance in Utah is a crime. While it is against the law to operate a motor vehicle that is not insured, the statistics show that as many as 5.8% of drivers in the state do not have coverage.

This uninsured motorist rate is low, 1 in 20 drivers are vulnerable to penalties for driving without insurance if they get caught. There is more than one way that law enforcement officials and other agencies can catch you driving uninsured.

Most people are familiar with the fact that they must hand over their license, insurance and registration when they are pulled over by a police officer. If you cannot hand over a valid auto insurance ID card, you may be cited for driving without insurance or your vehicle can be impounded. An officer may also ask you for your insurance cards at the scene if you are involved in an accident.

You do not have to have an accident or get a ticket just to get caught driving without insurance in Utah. Utah has its over unique electronic insurance verification system, where auto insurance companies are required by law to submit a list of their policyholders and to notify the Department of Motor Vehicles when a policy is no longer active.

Utah mandated this method of insurance reporting starting July 1, 2013, and since then the rate of uninsured motorists has gone down. If the DMV finds you have no coverage on a registered vehicle, you will receive a letter which you must respond to before being fined.

What are the penalties for driving without car insurance in Utah?

Penalties depend upon how you are caught driving uninsured and how many times you have been caught. In the state, compulsory insurance laws are taken very seriously. If you fail to insure your vehicle, you are guilty of a misdemeanor. Here is a list of some of the penalties:

Failure to have proof of coverage when pulled over

• Registration suspension
• A Class B misdemeanor
• Fines of $400 for first offense and $1,000 for subsequent offenses
• License Suspension until insurance is purchased and fee is paid

Cancellation Reported to Department of Public Safety

• Suspension of registration
• Reinstatement fee of $100
• Requirement to file an SR-22 with the DPS for ongoing supervision
• Continuous filing of SR-22 for a period of three years
• Failure to file SR-22 will result in a requirement to surrender your license

These fines can be very costly. To avoid the hassle of going to court or dealing with the DPS, it is in your best interest to carry mandatory coverage options at a minimum. Compared to the cost of the penalties for driving uninsured, it is much more affordable to buy coverage.

What to Consider When You Are Building Your Utah Insurance Policy

If you are buying auto insurance, it is important to choose the right coverage options from the right insurer. Many people believe that choosing the state minimums will save them a pretty penny on coverage, but some insurers actually offer discounts on rates when you select higher limits.

This means that you could purchase five times the coverage for close to the same cost as the premiums for state minimum coverage.

You really need to consider your own personal needs and budget when you are determining how much coverage you need. If you fail to purchase enough coverage, even in a no-fault state, the costs you must cover out of pocket can wipe out your savings and assets. In addition to raised liability limits and PIP limits, you should also consider buying coverage options that are not required for added protection.

Saving on insurance is important, but paying a few dollars more a month for thousands in protection is worth it to many.

Additional Coverage Options Available in Utah

In addition to Personal Liability in Personal Injury Protection, you can purchase add-on coverage options that protect you and your family. Here is a breakdown of extra coverage options you may want to consider:

• Comprehensive: Required for leased and financed vehicles, this coverage will pay for damage caused by fire, theft, vandalism and claims other than collision. You will be required to pay a deductible before damages are paid for.
• Collision: Required for leased and financed vehicles, this coverage will pay for damage sustained in an accident no matter who is at-fault. You can carry a higher deductible to keep costs for physical damage coverage down.
• Uninsured Motorist: If someone without insurance hits you, or someone who hits you flees from the scene, Uninsured Motorist will cover your damages. This coverage can also protect you when you or a household member is a pedestrian that complies with pedestrian laws.
• Rental Reimbursement: If you need a replacement vehicle when your vehicle is being repaired in the shop, this coverage will pay for a rental for a specified period of time until your vehicle is ready. You can select the daily rate based on what your budget is.

What to Consider When You Are Buying Car Insurance in Utah

You should not buy auto insurance coverage from just any auto insurer. You need to be sure that the company that you purchase coverage from a state licensed to do business in Utah by the Utah Insurance Department. By doing this, you have peace of mind in knowing that the company must answer to the department when complaints are filed by consumers.

It is also important to check the insurer's financial stability ranking and their complaint index through the NAIC to see if they are reputable and secure.

Now that you know the car insurance requirements in Utah and what coverage options are available, it is time to start shopping. To find the most competitive rates in a limited amount of time, use a rate comparison tool and enter your personal information only once.

Review company information and pricing, and purchase the best auto policy.

Be sure to also compare quotes using the FREE comparison tool below to start your search!