Utah car insurance laws were enacted to ensure that you are not financially burdened if you are required to cover the cost of property damage and injuries resulting from accidents that you cause. This article contains more information on car insurance requirements, programs, discounts, rates and other relevant information that you may be looking for regarding to Utah car insurance.
Car Insurance Requirements
If you are a driver in Utah State, you will be required to purchase both no-fault and liability car insurance. These two insurance policies will help you pay the cost of property damage and medical costs resulting from the accident that you cause. These two car insurance coverages are also required if you are an out-of-state resident who has lived in Utah for at least 90 days.
No-Fault car insurance
You will be required to purchase no-fault car insurance or personal injury protection (PIP) coverage immediately after you purchase your car in Utah. The minimum limit for Utah no-Fault car insurance is $3,000 per person. In case of an accident, no-fault car insurance or Personal Injury Protection will cover your medical bills and that of your family members, regardless of who was at fault for that accident.
Liability car insurance
Utah car insurance laws also require you to purchase liability insurance immediately after you purchase a car. This insurance coverage will help you pay the cost of property damage and injuries caused to other as a result of an accident you cause. The minimum amounts of liability insurance in this state include:
- $25,000 for death or bodily injury per person, per accident
- $65,000 for total death and injury involving multiple, per accident
- $15,000 for property damage per accident OR
- $80,000 for property damage and total injuries per accident.
Your personal injury protection insurance cover will take effect first. If your Personal Injury Protection cover are exhausted, you may make a claim against your liability insurance.
Optional Car Insurance
You need additional Utah car insurance covers. These are some of the optional insurance covers to consider when shopping for car insurances:
- Collision – Insurance cover that helps pay for damages made to your car after an accident
- Comprehensive – Insurance cover that pays for damages resulting from all accident related events such as fire, floods etc
- Uninsured/underinsured motorist
- Rental car
- Roadside assistance.
NOTE: If you are financing your car through a loan or lease agreement, both collision and comprehensive coverage are required.
Car Insurance Monitoring
While Utah requires all drivers to insure their cars, there are quite a number of drivers who still drive without car insurances. Because of this fact, various law enforcement agencies in Utah continue to monitor the road to keep off drivers without car insurances. They, therefore do the following to achieve their goals:
- Electronically monitoring car insurance statuses
- Demanding proof of insurance at various traffic stops.
Car insurance monitoring is done by Insure-Rite and Utah Division of Motor Vehicles. These two bodies work in conjunction to determine the status of your car insurance. Insure-Rite must receive the status of your car insurance from your car insurance provider. If your car insurance is cancelled by your insurer, you will receive a letter from Insure-Rite to notify you of the same. Upon receiving this letter, you are required to either show proof of insurance or update your insurance policy. In Utah, if you are pulled over by a traffic officer for violating traffic regulations, you will be required to provide proof of car insurance which includes:
- Insurance card
- Insurance declaration
- Insurance binder.
Penalties for Insurance Violations
If you are caught driving without car insurance in Utah, you will face the following penalties:
- Vehicle registration suspension
- Driver’s license suspension
- A minimum fine of $400 for your first offense
- A minimum fine of $1,000 for subsequent offenses.
Driver’s License and Registration Reinstatement
If your driver’s license is suspended and you want to get it reinstated, you will be required to pay certain fines and fees. The following is the procedure that you must follow to get your driver’s license reinstated:
- Purchase car insurance
- Pay a $30 reinstatement fee
- Show proof of insurance to the DPS.
If your car registration was suspended as a result of violating Utah car insurance laws and you want to get it reinstated, you must:
- Pay a $100 fee
- Present a photo ID
- Provide evidence of vehicle ownership
- Provide proof of insurance.
You are supposed to keep a clean driving record. Utah car insurance companies have a tendency of denying insurance coverage for drivers with a poor driving record. Good news is, you can apply for insurance coverage through Western Association of Automobile Insurance Plan (WAAIP). However, insurance policies through this program come with higher costs than that of open market car insurance companies.
Other Utah Car Insurance Issues
Utah Insurance Department is the body that is responsible for handling car insurance issues. The UID can solve car insurance complaints and deal with car insurance fraud cases.
You must attempt to solve your car insurance dispute with your insurance provider. If the dispute is not resolved through this means, you can then report it to the UID through online or by phone. For phone option you can use the following hotlines:
- (801) 538-3890 if you are within Salt Lake City
- (800) 439-3805 if you are outside of Salt Lake City.
Car insurance providers lose significant sums of money through car insurance frauds. These losses trickle down to affect car insurance premiums. Examples of Utah car insurance fraud include:
- Staging car accidents
- Falsifying car repairs
- Falsifying injuries
- Increasing medical costs.
You can help fight car insurance frauds by reporting any suspected car insurance fraud to the authorities involved through the following means:
- Online at www.naic.org
- Calling-(801) 531-5380 or (877) 373-8315
- Faxing a report to (801) 535-2878
- Mailing a report to the UDI using the following address: 230 S. 500 E. STE 170 Salt Lake City, Utah 84102
Determining Your Insurance Premium
Utah car insurance providers use the following factors to determine your car insurance rates:
- Your driving record
- The make and model of your car
- Your car insurance claim history
- Your gender
- Your age
- Your marital status
- Your credit history.
Utah Car Insurance Discounts
One great way to save on car insurance is by looking a car insurance company that offers discounts. Ask your insurance company whether they offer any of the following discounts:
- Good driver discount
- Multi-car discount
- Good student discount
- Homeowner’s discount.
These discounts can save you a lot of money, but the best way to obtain cheap insurance for your car is by maintaining a clean driving record.
Most Stolen Cars in Utah
If you are driving a car that is always targeted by thieves, you are likely to pay higher insurance rates. This is the 2013 list of the most stolen cars in Utah according to www.nicb.org:
- Honda Accord and Honda Civic
- Chevrolet Pickup (Full Size)
- Ford Pickup (Full Size)
- Nissan Altima
- Acura Integra
- Subaru Legacy
- Toyota Camry
- Dodge Pickup (Full Size)
- Jeep Cherokee/Grand Cherokee.