Giorgos Zacharia, PhD Co-founder | Insurify
Utah's car insurance requirements are set to increase in 2025, potentially leading to higher premiums for drivers. The state's mandatory requirements were last updated in 2008, and the new limits will affect both new and renewing policies starting in January.
Betsy Stella, vice president of carrier management and operations at Insurify, explained that the changes would primarily impact drivers with state-minimum coverage. "Since the state will soon require drivers to carry higher bodily injury and property damage limits to meet state financial responsibility requirements, drivers can expect premiums for those coverages will be higher than they were for the old minimum limits," she said.
Chase Gardner, data insights manager at Insurify, noted that while rates might increase due to the new limits, the effect may not be significant. "Utah drivers with state-minimum coverage should see their rates increase by a few percentage points after policies reflect the new, higher liability limits, but it will hopefully have a much smaller effect than recent cost increases," he stated.
According to Insurify's auto insurance report, Utah's average auto insurance premium is below the national average; however, its liability-only rate is slightly above. Utah drivers pay an average of $183 per month for full coverage and $107 per month for liability-only coverage. National averages stand at $204 for full coverage and $104 for liability-only.
Gardner emphasized that several factors influence auto insurance costs beyond just liability coverage amounts. "Numerous factors, like accident and crime rates and rising vehicle repair costs, affect what you pay for auto insurance. It’s those factors that are mostly behind the broader rate increases in the last several years," he said.
Insurify analysis forecasts a nationwide average increase of 22% in auto insurance costs in 2024. In Utah specifically, costs are expected to rise slightly faster than this average with a predicted total increase of 24% throughout 2024.
To help manage rising costs amid these changes, the Insurance Information Institute (Triple-I) offers advice such as shopping around for quotes and bundling policies. They also suggest maintaining good credit history and considering raising deductibles if financially feasible.
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