Starting Jan. 1, 2025, Utah drivers will be required to carry higher minimum auto insurance liability amounts. This change, outlined in House Bill (113) (2023), is intended to improve financial protection for accident victims.
It will impact many drivers and their insurance premiums.
Utah’s new minimum liability levels
Currently, Utah requires all car insurance policies to carry minimum liability coverage of $25,000/$65,000/$15,000. However, the new law will increase these levels to:
- Bodily injury per person: $30,000.
- Bodily injury per accident: $65,000.
- Property damage per accident: $25,000.
Utah, as a no-fault state, also mandates a minimum of $3,000 in Personal Injury Protection (PIP) coverage for all auto insurance policies. With this coverage, drivers file claims with their own insurers to recoup medical costs, regardless of who was at fault. It also covers lost wages and other related expenses following a car accident.
The minimum PIP coverage amounts will not change in 2025.
What these changes mean for Utah drivers
Higher premiums: Many Utah drivers can expect to see a noticeable increase in their insurance premiums as insurance companies to adjust their rates to accommodate the potential for higher payouts. The impact on individual premiums will vary depending on factors like driving history, your car and location.
More financial protection: If you cause an accident, you’ll be better prepared to adequately compensate the other party for their severe injuries and property damage. The inverse is true, too. If you’re the victim in a serious auto accident, you’ll have better odds of receiving adequate compensation for your losses.
Potential for more uninsured drivers: The increased costs could lead to an uptick in drivers that illegally forego coverage. This would lead to more accidents involving uninsured drivers. In these scenarios, you can only recover damages via your own insurance.
How to protect yourself
While the new law helps you cover the cost of damage you may do to others in an accident, it doesn’t actually protect your car. Consider additional coverage to fully protect yourself, your vehicle and your finances:
- Collision coverage: This covers multi-vehicle accidents and single-vehicle collisions with objects, like a telephone pole.
- Comprehensive coverage: Comprehensive covers you for accidents outside of your control, like weather-related damages, theft or vandalism.
- Uninsured/Underinsured Motorist (UM/UIM) coverage: This coverage protects you in case you’re involved in an accident with an uninsured or underinsured driver. Given the chance that more drivers will skip on coverage when the new requirements kick in, this could be a wise choice.
Note that if you finance the purchase of a vehicle (or have a lien on it), you’re often required by your lender to include collision and comprehensive coverage on your car insurance policy. It may also be required to recover under a GAP policy.
What to do now
Review your current coverage and understand its limits. If you’re satisfied with the policy, you can hang tight until your coverage is up for renewal, when it will automatically adjust to comply with the new law.
If you’re nervous about driving in the interim with lower coverage amounts, you can opt to increase your coverage ahead of your renewal. Use comparison tools like the Jerry app to find the best rates and coverage options in minutes with no spam emails or phone calls.
