Utah is one of the top 10 least expensive states for car insurance, with average annual premiums of approximately $1,272. Depending on your driving record, credit history, type of car you drive and other factors, your insurance may be higher or lower than the average. No two people will pay exactly the same amount for insurance premiums, so you rates may be different from your friend’s or neighbor’s. Nevertheless, people moving to Utah from neighboring states like New Mexico, Colorado or Arizona may see a slight decrease in premiums.

There are several reasons why insurance in Utah is less expensive than in the surrounding area. While geographic factors certainly play an important role in determining auto insurance costs, the single biggest influence in insurance rates is the number of drivers without insurance in a given area. Utah has a lower rate of uninsured motorist than many surrounding states, with only 8 percent of drivers operating without liability insurance.

Whenever you are involved in an accident with a person who does not have insurance, your insurance company loses money. Normally, the at-fault party’s insurance will pay for a claim and reimburse any funds paid by the not-at-fault insurance company. If this reimbursement does not happen, then the not-at-fault insurance company may have to increase premiums in order to compensate for the lost funds.

Cost of living has a direct impact on the number of uninsured motorists; areas with healthy economies and a low unemployment rate will usually have fewer uninsured drivers than other places. Additionally, the lower cost of insurance may actually encourage more people to purchase coverage, creating a perpetuating cycle.

Utah also has a comparatively low rate of drunk driving accidents. In 2008, for example, Utah had 55 fatal DUI-related accidents; neighboring Colorado had 202 that same year. Utah has a relatively low rate of serious accidents in general, owing perhaps to the state’s fairly temperate weather and well laid-out streets. Most of Utah is on a grid system, meaning that the cities are mapped out carefully and intersections are easy to navigate. Contrasted with other areas that have a less rigid organizational system, Utah’s streets are probably much safer for commuters.

Car Insurance Requirements in Utah

Utah requires drivers to carry a minimum of $25,000/$65,000 of bodily injury liability and at least $15,000 in property damage insurance and operates under no-fault car insurance laws.

Utah No Fault Car Insurance

Utah is a no-fault state, meaning that your auto insurance is primary in paying for injuries resulting from a claim regardless of who caused the accident. You have a limited ability to pursue the other party’s insurance or to file a lawsuit in the event that you sustain injuries. In order to compensate for this, Utah requires all drivers to maintain personal injury protection coverage of at least $3,000 to cover injuries you sustain in an accident. If that cost is exhausted, you may be able to seek further expenses from the other party depending on the circumstances of the accident.

Many drivers also opt to buy collision and comprehensive insurance. You will need to pay a deductible to cover a portion of your own repair cost, but the deductible can be reimbursed to you if you did not cause the accident. If you have a lien holder on the vehicle, full coverage insurance is mandatory. Otherwise, you can choose to carry a liability-only policy if you wish.

Utah also offers uninsured motorist coverage for both injuries and property damage. This coverage is optional and can be purchased separately from collision. Uninsured motorist coverage essentially replaces the liability insurance of the person who hits you, and usually has a lower deductible than your collision coverage.

You may also be able to purchase additional coverage such as towing, roadside assistance or rental reimbursement from your insurance company. Be sure to ask how much it would cost to add these as they are not usually considered part of full coverage and must be purchased separately. They are usually very affordable however.

Whether you’re a current Utah resident looking for cheap car insurance or a person considering moving to the state, you can search online for a free insurance quote to help you find the best company. Once you’ve decided on a company, you can discuss your coverage options with the agent or customer service representative. That way you can be sure that you receive a policy that covers your needs without breaking your budget.