Utah auto insurance prices are rising due to economic conditions and the resulting activities like policy cancellation and fraud. Drivers trying find affordable auto insurance rates may feel like there is nothing that they can do to manage these rising costs. Honestly, you may have more control than you think. By understanding why rates are increasing, knowing what protection you need, and proactively managing your coverage you can keep your premiums low and your security high.
How does fraud affect my Utah car insurance premiums?
Insurance industry experts estimate that as much as 36 percent of your auto insurance costs are due to the fraudulent activities of other drivers. It might come from soft fraud such as filing multiple claims for a single injury, over reporting lost wages due to an accident or reporting higher damage costs than those that were truly paid out. Hard fraud instances like falsely reporting a car as stolen, registering a vehicle in another state to get lower rates, or "fronting" which is insuring a car in one person's name when another actually drives it, also cost everyone a lot of money. While you can't control the actions of others, every driver needs to realize the devastating cost of these activities to all insured drivers.
How do I know how much Utah car insurance coverage I need?
Minimum requirements for Utah drivers increased in January of 2009. It is now mandatory that all drivers carry liability insurance in the form of 25/65/15 which is an increase from the 25/50/15 of the year prior. Also, since this is a no-fault state, drivers are required to carry $3,000 in personal injury protection (PIP) to cover medical expenses if an accident occurs. Optional coverage policies include uninsured motorist, collision and comprehensive protection. Although the state regulates liability minimums for your Utah auto insurance, don't think that means that it is necessarily adequate for your needs. In fact, experts in the industry recommend that drivers carry $100,000 per injury and $300,000 per accident which would make your policy a 100/300/15 and much higher than state requirements. If you can afford this coverage, it is wise for most people.
How can I save money on my Utah car insurance rates?
One way to lower your premiums is to have a great driving record. Even if it's a bit spotty, taking a defensive driving course can result in premium reductions. Look to other drivers in your home for help with discounts too. For example, good student discounts may be available to your high school aged child. Finally, consider adding an anti-theft device if you drive a car targeted for theft or live in an area considered at risk for car theft. At the end of the day the most actively involved consumers will save the most money on their Utah auto insurance.