How Car Insurance Works In Utah

Driving is a privilege that comes with a lot of responsibilities. Once of these is carrying an insurance policy to ensure financial ability in case of an accident. This policy must comply with the amounts set by law or even exceed it. Below is a discussion of how car insurance works in Utah:

Minimum Coverage Requirements

Utah residents must avail of liability coverage so that they can pay victims of an accident if they should ever cause one. This must not fall below the following amounts: $25K for injuries per person, for each accident, that can go up to as much as $65K per accident with multiple persons involved.

As for property damage, the minimum is at $15,000 for repairs per accident. In other words, the payout should be no less than $80K in total for both bodily injuries and property damage. This should be enough to cover most cases although major crashes are likely to cost more. The insurance company will only pay up to the contractual limits. The rest must be shouldered by the at-fault driver.

No-Fault Law and PIP

Most states are satisfied with a mandatory liability coverage but Utah tries to go one step further with its no-fault law. This law aims to reduce the lawsuits between parties in an accident. It also lowers the amount of claims that need to be chased in the insurance system. Should you be caught in a tangle, get a car accident settlement in Utah with the help of an experienced lawyer.

Every driver must carry Personal Injury Protection coverage to take care of the policyholder and others in the household no matter who was to blame for the accident. This is a great addition since there are plenty of cases wherein it is hard to determine fault. Instead of waiting for conclusive findings, money can simply be released with no questions asked. The minimum is at $3K.

Optional Coverage

Once the basics have been taken care of, you can move on to the optional types of coverage that can save you money in the long run. Examples include collision coverage for payouts relating to the damage to your own car, comprehensive coverage for damage sustained through non-collision events, and uninsured motorist coverage for cases where the at-fault driver has failed to secure liability insurance.

Although these are not mandatory by law, those who paid for their car via bank loan or some other form of financing will likely need to get comprehensive and collision coverage as part of the deal. This ensures that the unit stays in top shape while it has not yet been paid for in full.

Insurance Monitoring and Penalties

Getting adequate insurance is crucial. Failure to do so can lead to the suspension of the driver’s license and the vehicle registration. Fines may also be imposed for each offence. Reinstatement will not be permitted until a person purchases car insurance.

LINKS:

  1. https://www.dmv.org/ut-utah/car-insurance.php
  2. http://www.rmiia.org/auto/steering_through_your_auto_policy/Auto_Insurance_Utah_Requirements.asp