Statistically, an average of 6 million car accidents in the US happen every year-half of which are injured and an average of more than 90 people die due to car accidents everyday. In the State of Utah, nearly 5.8% of the population are uninsured.
With this in mind, how important is car insurance to you? Are you getting enough coverage from your policy?
LET US HELP YOU UNDERSTAND YOUR CAR INSURANCE AND KNOW WHAT IT COVERS.
What is auto insurance?
Auto insurance is a contract between you and your insurance company that protects you from any loss or expenses if the unforeseen happens such as car accident or theft. It is mandated by most states in the US, including Utah.
Auto insurance provides coverage for:
- Property – any damage to or theft of your car
- Liability – your legal responsibility to others for bodily injury or property damage
- Medical Expenses– the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses
Each state requires a minimum liability coverage. The insurance industry set an injury liability limit of $100,000 per person or $300,000 per incident. State of Utah requires a liability coverage with no fault injury protection of $3,000. No fault law require that you meet a minimum dollar threshold to be able to bring a lawsuit over damages over and above your economic losses.
What does it cover in Utah?
State of Utah mandates the coverage for the following:
Liability – State Minimum Required:
- $25,000 per person for bodily injury
- $65,000 per accident for bodily injury
- $15,000 per accident for property
Personal Injury Protection (PIP) – PIP covers your medical expenses due to car accidents. The minimum PIP coverage are as follows
- $3,000 of medical expenses per person.
- $3,000 in death benefits, which will be given to the heirs
- $1,500 in burial costs per deceased person which may be spent on burial and funeral expenses.
- 85% of lost wages due to injuries sustained in the accident, up to a maximum of $250 per week.
- Up to $20 per day as a special allowance just in case you fail to perform tasks that are necessary. This may include household chores and may extend up to 365 days provided that it is certified by a doctor.
Uninsured/underinsured motorist coverage – This is an option provided to an insured Utah driver that will cover their losses in the event of meeting an accident with an uninsured motorist.
Collision & Comprehensive – Collision refers to the insurance that covers any damage to your car caused by another vehicle,though it is not mandatory, some insurance companies may offer this for financing purposes. Comprehensive on the other hand, protects you against damage to your own car. Like collision, it is not a requirement but something that you may want to consider if you have an old-aged car.
How much is the Average Cost for Renters Insurance in Utah?
The average cost of renters insurance is $187 per year in the U.S. In the State of Utah, yearly cost if renters insurance is $145.
Below are the average annual rates for five major providers of renters insurance in Utah:
- StateFarm – $131
- AllState – $156
- Farmers – $157
- Nationwide – $200
- Liberty Mutual – $203
How much is the average cost of Auto Insurance in Utah?
Car insurance in Utah costs $1,112 per year— less than the national average by 22.1%,but may vary depending on factors like age, driving history, location, credit rating, gender and marital status.
Some of the cheapest auto insurance rates available in Utah are Bear River Mutual, GEICO, and Farm Bureau Mutual. Progressive and American Family round out the top five most affordable carriers.
What are the best auto insurance companies in Utah?
Below are the 10 largest auto insurance companies in Utah (by market share).
- State Farm 14.4%
- Farmers 9.9%
- American Family 5.9%
- Allstate (Insurance) 5.7%
- Allstate (Fire & Casualty) 4.9%
- Bear River Mutual 4.6%
- Allstate (Property & Casualty) 3.2%
- Progressive (Classic) 3.0%
- Geico 2.8%
- Progressive (Direct) 2.1%
Source: Utah Insurance Department, 2009 Market Share Report
Now that we have reviewed the basics of Auto Insurance in Utah, it is important for you to know how to get the best policy at the lowest price. You may think that is impossible, but given the following tips, you may get the best option possible without burning your pocket.
- Shop around and compare. Consider this as the number one tip that you should consider when buying a plan. You may want to use online comparison tools to help you compare the benefits offered. However, you have to be cautious when looking for deals. Some may seem cheaper, but may not cover the same coverage as the others. If you are happy with your current auto insurance provider but unhappy with their renewal quote, let them be aware of the offer you received from a rival insurer so they could at least match it. Remember, it is essential for you to find out this information to get the best deal in the market.
- Include only those necessary. No need for you to add everyone on the policy.Just consider the regular drivers as you can add anyone later on.
- Choose your car. Aside from fuel and performance, you may have to consider the insurance cost when purchasing your car. Car brands like Chrysler, Honda, Toyota and Subaru are some of the cheapest ones to insure.
- Drop what you don’t need. As mandated by the law, each policy is required to cover the liability insurance. This is the one that pays for injuries or damages caused by you to others. Some people opt in collision and comprehensive insurance into their plans. However, you may have to check if you really need those add-ons on your plan as it may cost you around $600 to $2000 extra. So if you are driving an old car, you may want to think twice, you might end up paying more than what your car is worth. You will be able to check your car’s worth on some tools available online.
- Know your auto insurance discounts. Auto Insurance rates vary amongst insurance providers.It pays to know what discounts are being offered in your chosen policy. Take advantage of these discounts to get the best rate for you. Here are some offers that you have to checkout.– Students with good grades.
— New drivers who have taken a driver-training course.
— Older drivers who have taken a refresher course.
— Any driver who takes a defensive-driving course.
— Members of affinity groups, such as college alumni and certain occupations and professions.
— Anti-theft and safety equipment
- Limit your mileage. The number of miles you drive may affect the cost of your auto insurance policy. You may want to lower your mileage and provide an accurate estimation of that mileage to shop around.
- Increase your deductible. According to the Insurance Information Institute, increasing your deductible from $200 to $500 can make you eligible for a 15- to 30-percent premium discount. This is while raising the deductible to $1,000 can save you up to 40 percent. This may apply on collision and comprehensive add-ons and may vary depending on the state that you live in. If you are a good driver and hold no records of accidents, it is a good consideration doing this. Just make sure that you are ready to pay the cost if your luck runs out.
- Maintain a good credit score. Your credit rating has an adverse effect on your auto insurance rate. So it is best for you to maintain a credible credit rating to lower down your premium. It is a good idea to check your score annually, and if a major change such as divorce or death of a family member affected you financially, it is best to talk to your insurance agent for any exceptions. A few questions won’t hurt.
- Take a Driving Course. This is an obvious one,driving safely means low to no tickets and accidents.If you are considering adding your teenager child to your policy, think again, as it may cost you 50 or 100% by doing so. Make sure that your child takes a driving lesson and geared up with a driver’s license before taking the wheels, otherwise,you will lose driving privileges alongside your budget.
- Pay your premiums on time. You may not know this,but some insurance companies offer discounts if you pay your premiums on time. Check with your provider some payment terms that are available for you.
- Buy in bundles. Many insurers will give you a break if you buy two or more types of insurance from the same company. You may also get a reduction if you have multiple vehicles insured with the same provider. Some insurers value your loyalty and reduce the rates for long-time customers. It can simplify your finances and lower down your premium.
Good, cheap auto insurance is out there and it just takes a little shopping around to find it!
Seems hard? We got your back, Rocky Mountain Insurance is your one-stop shop for affordable insurance in Utah. Get a commercial insurance quote today. Furthermore, let us find the right coverage for your business today. Instantly compare the most competitive rates & best insurance plans available to you. For all your questions, you may call 801-613-7447 or visit us at 825 E 4800 S Suite 120-E Salt Lake City, UT 84107