How to Meet the Auto Insurance Standards in Utah

Utah's auto insurance laws are different from those of most states in two ways. First, Utah is a no-fault state, which means your insurer must pay your injury claims after a collision regardless of whether you were the cause. Secondly, because Utah has adopted the no-fault standard, drivers are required to purchase personal injury protection (PIP) or medical payments plans in order to comply with state laws. Read on to learn more about the state's policies and how they impact your decisions.

Auto Insurance Laws

The law requires drivers to carry liability and personal injury protection (PIP). Utah's current liability requirements are 25/65/15. This translates into $25,000 of bodily injury protection for one person per accident, $65,000 of bodily injury coverage for two or more people per accident, and $15,000 of property damage coverage per accident. Keep in mind that these are only minimums; industry experts recommend that most drivers carry at least $100,000 of liability protection per person and $300,000 per accident. The law also requires drivers to purchase a minimum of $3,000 of PIP, or medical payments coverage. PIP will pay for the cost of your and your passengers' injuries following an accident even if you were not the responsible party.

What No-Fault Means for You

No-fault states establish laws that call for the payment of first-party, no-fault benefits and restrict drivers' right to sue. These laws are also known as limited-tort options. First-party benefit coverage is another name for personal injury protection. With a no-fault structure, drivers can only sue in the event their collision-related medical expenses exceed a certain monetary threshold. Otherwise, the policyholder must submit a claim to his/her insurer for payment instead of pursuing litigation.

Optional Add-ons

Depending on the value of your vehicle and your financial situation, you may also want to consider collision, comprehensive, and uninsured motorist products. Although these are not required by law, it is risky for most drivers to go without them. Collision will help you pay to get your car or damaged parts replaced or back in working order after an accident. Comprehensive pays for any damage to your vehicle that was not associated with a collision. Lastly, uninsured motorist pays for your injuries if you are involved in a collision with a driver who is either uninsured or underinsured.

Researching Insurers

The State of Utah Insurance Department maintains a website with a wealth of valuable information on car insurers that are licensed to do business in the state. For example, in the comparison tables provided on the site, you will find average premiums for six-month policies for several different demographics. The tables also report the premiums each insurer earned in Utah for the year as well as the number of complaints filed against the insurer for every $100,000 of premiums earned.

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