Auto Insurance in Utah

Overview

Residents of Utah, the Bumblebee State, pay less for their auto insurance than much of the rest of the country. Currently, Utahans pay the 10th cheapest auto insurance in the nation.

While it may be cheaper to drive in Utah, you’ll pay an extremely high price if caught texting while driving. Utah has the toughest cell phone and texting laws in the U.S.  Under a Utah law passed in 2009, if you are convicted of causing an accident that causes an injury or fatality while texting and driving, you can receive a jail sentence of up to fifteen years. Utah considers this reckless driving and the punishment is severe.

Don’t text and drive!

Utah’s mandatory auto insurance liability minimums

According to state auto insurance laws, every Utah resident is required to carry both liability and no-fault auto insurance coverage, as Utah is a no-fault state.

It is also mandatory that every Utahan carry an auto insurance identification card in their vehicle verifying that they carry both liability and no-fault insurance coverage.

As of January 1, 2009, your Utah auto insurance policy must meet the following minimum liability limits:

  • $25,000 – bodily injury, one person
  • $65,000 bodily injury, per accident
  • $15,000   property damage

Contact your Utah auto insurance company or agent to find out the minimum no-fault insurance you are required to carry.

Utah’s Department of Motor Vehicles (MVD) also requires the following:

  • If you are a non-resident and own or operate an automobile that has been on the roads in Utah for a period of 90 days during the past 12 months, you must carry no-fault auto insurance while driving in Utah.
  • All motor vehicles, with the exception off-road vehicles, are required to meet the minimum requirements of liability auto insurance coverage.

It is important to note that the state of Utah maintains a database of all insured vehicles based on information provided by state insurers. The state’s database tracks Utah vehicles that do not have a current associated auto insurance policy; if a vehicle is shown not to have a current auto insurance policy in effect, a letter is sent to the owner of the uninsured vehicle requesting that the vehicle show evidence of auto insurance coverage.

Failing to provide evidence of current Utah auto insurance

If the state of Utah identifies you as an owner of an uninsured auto and sends you a letter to that that effect, you must respond. If you cannot provide evidence a current auto insurance policy or you fail to respond to the letter, the state forwards this information to Utah’s DMV, as well as to appropriate local and state officials.

It is probable at this point that the state will suspend the registration of your automobile. This will also go on your driving record as a misdemeanor, which may affect the rates of your auto insurance premiums the next time you purchase a policy.

If you are convicted of driving while uninsured, your driving privileges will be suspended by Utah’s Department of Public Safety.

Business use of your auto in Utah

If you use your automobile for business purposes, talk to your Utah auto insurance agent about whether or not your personal car insurance policy covers you when you are conducting business.

For example, if you use your vehicle to make deliveries, or say for example, you have a landscaping, lawn service or catering business, you will most likely need to be insured under a business or commercial policy.

Personal auto insurance policies in Utah cover you when you are driving to a job or using for vehicle for shopping and pleasure. Discuss any business use with your auto insurance company or agent, as in Utah you may be able to get what is called an endorsement to your personal policy, which would cover you if you use your car for business. Otherwise, your agent may recommend that you purchase a commercial auto insurance policy to ensure that you are adequately covered for all purposes.

Average annual cost of insurance

Utahans pay less to insure their vehicles than much of the rest of the country. The average annual premium for Utah auto insurance in 2011 is $1,272, while the national average is $1,561.


Source

Utah Insurance Department

Tel 801-538-3800

Web www.insurance.utah.gov