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Utah Car Insurance

Car insurance is vital to the financial security of drivers. However, it can be confusing, especially since car insurance regulations and laws vary from one state to the next. In addition, the prices of auto insurance can be unaffordable for some drivers.

To be sure you are receiving the best available premium rate, consider using an online car insurance price comparison tool. These types of tools allow you to quickly and easily compare different car insurance companies, policies, and prices.

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To learn more about car insurance in the state of Utah, read on.

Minimum Liability Insurance Requirements in Utah

No matter where you live, it is important to be aware of and follow your state's insurance requirement laws. Every state has different auto insurance requirements. In every state except New Hampshire, the minimum amount of insurance required is called liability.

In the state of Utah, drivers must carry at least:

  • $25,000 per person for bodily injury
  • $65,000 per accident for bodily injury
  • $15,000 per accident for property

Drivers should keep in mind that if they are responsible for an accident that has costs exceeding the minimum required amounts, they will be financially responsible for the difference. Drivers should consider purchasing policy limits that are greater than the minimum requirements, depending on their financial situation and assets.

What is liability coverage?

There is a good reason why the majority of states require drivers to have, at minimum, liability coverage. If you cause an accident that results in the damage to another party’s property or personage, you will be financially responsible for the damages.

Depending on the severity of the accident, this cost could be thousands or even millions of dollars. The majority of drivers do not have the financial resources to cover such an accident. Liability coverage can help protect your financial interests, including your property and assets.

If you choose to add additional types of insurance to your policy such as comprehensive and collision, car insurance companies require that you also include liability in your policy.

On the other hand, some people choose to only purchase liability insurance and not comprehensive or collision. However, purchasing liability insurance is only a good idea if you own an older car and can afford to replace your own vehicle and pay out of pocket for your own damages.

Personal Injury Protection (PIP)

Utah also requires drivers to carry coverage for personal injury protection (PIP).
A PIP policy will help cover medical expenses, funeral expenses, loss of income, and other expenses regardless of who is at fault in the accident.

In some areas, PIP coverage may provide reimbursement for paying for hired help around the house if necessary as a direct result of the car accident.

Utah's no-fault insurance laws require drivers to have a minimum of $3,000 in PIP coverage.

Utah's No-Fault Insurance Law

Utah is considered to be a no-fault auto insurance state. No-fault means when there is an auto accident, those injured in the accident will use their own insurance coverage first and file what is called a first party claim. In some cases, they may use their own coverage exclusively.

In Utah, your auto insurance company must pay $3,000 in PIP benefits, no matter who is at fault for the accident. If the accident is minor, individuals involved many only receive a settlement from their own car insurance company.

In addition, no-fault states like Utah limit the ability to file a liability claim or lawsuit for compensation from other parties involved in the accident.

To be eligible to file a claim against other parties, drivers must meet the following conditions:

  • Exhausted their own PIP coverage
  • Have financial claims over $3,000
  • Sustained injuries that have permanently disabled, dismembered, disfigured, or impaired them

Uninsured and Underinsured Motorist Coverage in Utah

All Utah car insurance carriers are required by law to provide uninsured and underinsured motorist coverage with any type of auto insurance policy that is issued in the state. However, drivers can reject this coverage. If they choose to do so, it must be rejected in writing.

This type of coverage is good to have, as it will help cover your damages if you happen to be in an accident with another driver who does not have any auto insurance or who does not have enough auto insurance coverage to pay for your damages in the accident.

In general, uninsured and underinsured motorist coverage will cover expenses for:

  • you if you are a driver or passenger in a vehicle named in your policy or if you are driving or riding in any vehicle you do not own or if you are a pedestrian
  • a relative who resides with you and sustains injuries while driving or riding in the car on your policy
  • drivers or passengers in your insured vehicle with your permission,
  • any passenger that is riding in a car that you are driving but do not own

Collision and Comprehensive Coverage

Although not required by Utah car insurance laws, collision and comprehensive coverages are important parts of a car insurance policy that drivers should consider when purchasing their Utah policy.

Collision coverage pays for damages to your vehicle that happen as a result of a collision with another car or object or if your car flips over. Pothole damages are also covered in collision policies.

With this type of coverage, you select your deductible, generally between $250 to $1,000. You should be aware that the higher the deductible the lower your premium will be.

Regardless of who is at fault for the accident, your car insurance company will reimburse you for repairs to your car less than your elected deductible amount.

If you are not the at-fault party, your auto insurance carrier may attempt to collect the monies they paid on your claim from the other driver’s insurance carrier. If they are successful in their attempt, you will be reimbursed for the deductible that you paid for the claim.

Comprehensive coverage is another important elective part of a car insurance policy. If your car is damaged, destroyed, or lost due to factors other than a collision, it falls under comprehensive coverage.

In general, comprehensive coverage includes loss or damage as a result of:

  • Theft
  • Vandalism
  • Fire
  • Hail
  • Wind
  • Flooding
  • Natural disasters
  • Explosions
  • Falling objects
  • Accidents with animals such as wildlife or birds

As with collision coverage, comprehensive coverage comes with a deductible. Usually, the deductible is between $100 and $300. Remember that increasing your deductible will generally decrease your premium.

It is important to note for both comprehensive and collision coverage that although these policies are not legally mandated in Utah, they may be required if you have a loan on your vehicle or if you lease your vehicle.

Check your loan documents or your lease contract to be sure. Not carrying these coverages when required by the leasing company or bank can result in a bill for the remainder of the financial responsibility for your loan or lease with no vehicle to show for it.

What about glass?

For windshield glass coverage, most car insurance policies place this under the comprehensive portion of your policy. However, some auto insurance carriers offer no deductible glass coverage. Check with your carrier to find out what your options are.

What is gap coverage?

Gap coverage is not a required coverage in Utah or in any state. However, if you have a leased vehicle you may be required by the leasing company to carry it. If you have an outstanding loan balance on your car, it is also a good idea to have gap coverage.

In the event that your car is totaled, your auto insurance carrier will determine its fair market value. As vehicles can depreciate very quickly, oftentimes the fair market value of your car is significantly less than what is still owed on the loan or the lease, thus creating a gap.

Gap insurance pays for the difference in these two amounts. If you do not have gap insurance, you will likely be required to pay the difference out of your own pocket.

It is important for all drivers to understand the insurance requirements in their state as well as optional types of coverage. Assessing the laws, your needs, and your financial situation will help you to select the right coverage.

Be sure to use an online price comparison calculator to get the best price possible on your auto insurance premium. Calculators make checking the rates of several different car insurance carriers simple and quick.

Start comparing auto insurance rates now by using our FREE comparison tool below!

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