The requirements of every state are different when it comes to the type and amount of car insurance required by law. In the state of Utah, it is mandatory for drivers to carry liability and no-fault insurance for your registered vehicles. Some states allow you to post bonds or put up other forms of financial proof of coverage but Utah requires auto insurance only.
The mandatory coverage and limits of liability for drivers in the state of Utah are: $25,000 bodily injury per person; $65,000 bodily injury per accident; $15,000 property damage coverage per accident. Because of the no-fault law in Utah, you must carry a minimum of $3,000 in personal injury protection or PIP.
Keep in mind that these are just the minimum levels required by your state and are the maximum amount that your insurance carrier will pay out in case of an accident. You may want to increase your limits to further protect you and your family.
Your bodily injury liability coverage will take care of the other people who were involved in the accident if you were at fault. It covers medical bills, compensation for lost wages, legal representation, rehabilitation, or nursing care, pain and suffering, and funeral expenses in the case of death. It does not cover you or any passengers in your vehicle.
Personal injury protection, or PIP, is what will cover you and any passengers in your vehicle that were involved in an accident It will also cover you and any members of your household who may be passengers in another vehicle that has been in an accident.
Property damage covers the repair of the property that you damaged. It will also replace the property including any other personal items that may have been damaged as a result of this accident.
If you have a vehicle that has been financed your lender will require you to carry collision coverage to protect their investment. If you have an older vehicle it usually doesn’t pay to carry collision but if you have a car that has substantial value, financed or otherwise, you should consider collision coverage.
You may want to include comprehensive coverage on your policy as well. This will protect the value and replacement of your car in the event that it is damaged as a result of anything other than an accident, for example if your car is stolen, someone breaks into it or it suffers flood damage.
It is against the law to not carry automobile insurance on your car. In the state of Utah it is considered a class B misdemeanor if you are stopped and cannot provide proof of insurance. You could be subject to fines up to $400 and possible suspension of your license.